Entire ensemble: Luxurious townhouse and apartment building with 22 residential units

In German brokerage law, a broker's sole commission is a contract that defines an exclusive contractual relationship between a broker and the client. In the case of a sole commission, the client binds himself to a single broker who, in return, is obliged to provide a service.

When buying a property, you must expect the following ancillary acquisition costs: Land transfer tax, notary and land registry fees, brokerage fees and bank charges.

This depends, among other things, on the value of the property in conjunction with the tax allowances. Consultation with a tax advisor or accountant with corresponding costs is advisable.

The risk profile of the property should be comprehensively assessed as part of a "due diligence", i.e. a simple consideration of the gross yield (annual rent : sales price x 100) is certainly not sufficient. This involves a large number of assessment steps, which are only presented as examples in the context of this blog.

The "hereditary lease" is prohibited by law in Germany today. Colloquially, however, the "Erbbaurecht" is often referred to as "Erbpacht". A "hereditary building right" is a right equivalent to real property which is formed in a separate "hereditary building right land register".