Things to know about buying real estate: The purchase contract
You have finally found the property you want to buy. Now you want everything to happen quickly and you can renovate or move in. But before that, there is one more hurdle: the purchase contract.
The Real Estate Purchase Contract in Austria
In Austria, it is not necessary to use a notary to draw up a real estate purchase contract. However, the contract must be notarised by him. However, it is also advisable to have a purchase contract for real estate drawn up or checked by a notary in order to avoid contractual errors. In this article, we would like to compile some interesting facts about the real estate purchase contract.
The contents of a real estate purchase contract
The sales contract should contain some important elements that ensure a clear handling of the sale. These include in particular:
- A precise description of the property with address and a detailed description of the furnishings, as well as any movable property sold along with it (e.g. furniture, heating oil stock, etc.).
- The purchase price and the agreed terms of payment
- Complete data on the seller and buyer
- A detailed description of the defects of the property and, if applicable, warranty agreements
- The specific date of transfer of the property
- A cost agreement for the preparation of the contract and the fees
Attention!
The seller has a duty of disclosure with regard to defects in the property. Therefore, all material defects regarding the condition and possible defects of title, such as a right of first refusal or a prohibition of sale, should be mentioned in the contract. In the event that the seller fraudulently conceals defects known to him, he is obliged to compensate the buyer. This also applies in the event that liability for material defects was excluded in the real estate purchase contract.
Registration in the land register
Once the signed property purchase contract has been verified, the registration of the new owner of the property in the land register must be completed. In addition, a copy of the contract must be sent to the tax office in order to issue the tax assessment for the real estate transfer tax. The paid land transfer tax is a prerequisite for the new owner of the property to be registered in the land register.
Payment of the purchase price and handover
As a rule, the purchase price for the property is paid close to the time of registration in the land register. The payment is usually made to a notary’s trust account, but not necessarily. After receipt of payment on the seller’s account, the property is handed over to the buyer. Ideally, the modalities are specified in detail in the purchase contract. The transfer of the property can also take place before the transfer is recorded in the land register.
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