“UNDERWATER STONES” AT PURCHASE AND SALE OF REAL ESTATE IN GERMANY.
“UNDERWATER STONES” AT PURCHASE AND SALE OF REAL ESTATE IN GERMANY.
Acquisition of real estate in Germany does not entitle you to a residence permit, but is a good reason for obtaining a multi-visa at the German embassy. There are several options for obtaining a residence permit in Germany. This is the opening of the company, the creation of additional jobs, investment, i.e. long-term capital investments for profit, in Germany. And where it is better and more reliable to invest your capital, no matter how much you buy a property. In Germany, the issue of acquiring real estate remains relevant, despite the fact that in recent years, property prices have increased significantly. However, and this should be emphasized, in Berlin they are lower than in other cities of Germany and other European capitals. But not only this attracts the attention of foreign investors to the real estate of Berlin & ndash; here the real estate market is stable and this stability continues to grow. In addition, Germany plays a leading role in the European community, and in particular it becomes noticeable during the economic crisis.
As for real estate in the German capital, here the interest is represented as apartments, houses and apartments in new buildings, and exclusive buildings & ndash; Villas, some of which have historical value.
What is the advantage of such buildings?
Firstly & ndash; it is the spirit of antiquity; secondly & ndash; it is beautiful, in the third, they are under the protection of the state and, which is probably of paramount importance, it is possible to get good and profitable loans for the restoration of such a structure, which can then be written off at the expense of taxes. It is very advantageous to purchase such a structure for the purpose of business development, for example, the establishment of a cultural center, recreation areas, racecourse, etc. This allows the investor not only to make a profitable investment, but also to obtain a residence permit in Germany.
However, it should be noted that the very procedure of purchasing real estate in Germany is quite complicated, and is divided into several stages. All sales and purchase agreements must be certified by a notary public, which protects the interests of both parties. The contract is drawn up in German and if one of the parties does not own it, it is translated by an authorized sworn translator. After the notarization of any property passes state registration – the introduction of the buyer in the register of owners (Grundbuch). The mechanism of transfer of real estate from the seller to the buyer is controlled both by the notary public and by the court. But, not knowing all the subtleties of the German legislation, you can get into a very unenviable situation & ndash; seduced by a beautiful wrapper & raquo; and having started independently in a complex way of registration of documents, it is possible to pass such & laquo; insignificant & raquo; nuances, as an encumbrance of the purchased real estate. And this will entail significant and completely unforeseen expenses and will raise the issue of obtaining a document on the right of ownership to great doubt.
One of our regular customers bought a villa in Berlin, which he planned to restore and, subsequently, use for his business. Her attraction was also in the fact that together with the structure were sold large plots of land. However, after some time, he changed the circumstances, and he decided to sell this property. He found a buyer from the state of the former Soviet Union and asked our lawyers’ office to carry out legal support for the transaction and issue a visa for the buyer.
The visa was issued, the buyer arrived in Berlin and met with us & ndash; he wanted to receive full information about the facility itself, about the terms of its purchase, opportunities and prospects in the future, including obtaining a residence permit. The buyer’s interest was completely satisfied – step by step the lawyer explained to him all the work ahead, up to the possibility of training our partners in a business plan for future business development and obtaining residence permit. The buyer was satisfied and after a few days gave us his answer & ndash; he agrees to complete support for the execution of the transaction and the resolution of subsequent issues.
We proceeded to carry out the assignment and faced one of the problems, which turned out to be the seller’s & ndash; our regular customer. He himself did not even suspect about its existence. When we got acquainted with the contract of sale of the villa by our client, an extract from the land book, we had a suspicion that he acquired the property. with an encumbrance, expressed in a hundred thousandth of a debt to the bank. Land Register & ndash; This is the main legal act that confirms the ownership of a particular person. In the same way all encumbrances, debts, assignment of debts, etc. are indicated there.
As it turned out, when buying a house our client was assured that there were no debts and encumbrances. However, in the land register (and we saw it from the statement), it was stated that there were several debtors with the bank. Some debts were repaid, but the debt of 100,000 was not repaid. And our client was included in the land book not as an owner, but only as a future owner. And for the alienation of such an object it was necessary to obtain the consent of the bank and the person conducting the bankruptcy procedure of the debtor (Insolvenzverwalter). Our client was very upset and at the same time he did not want to, let’s say, substitute his buyer. And we are obliged to observe the rights of the client by virtue of the law.
Having ascertained which of the notaries certified the purchase transaction, we contacted him, and he confirmed that the bank had assured him that everything would be done, the debt would be written off through the bankruptcy management, and therefore he did not inform the buyer. But as a result, the bank did not fulfill its promise – the consent, neither from the bank, nor from Insolvenzverwalter was received, the encumbrance is not withdrawn. Our client, according to the terms of the transaction, had to pay the value of the property, and the bank to give confirmation to the notary and the court that he would consent to making it by the owner. Our client paid the money, but the confirmation was not given. So, he was not even the owner of this property. In this situation, we had to conclude a sales contract on the condition that our client would still become the owner of the object being sold. It turns out that the notary who executed the transaction did not treat his duties in good faith & ndash; he sent a request to the bank in order to obtain confirmation, he did not receive a response and. calmed down. It was necessary to exert pressure on him and not to retreat until he did his job to the end and did not provide us with the required documents. Finally, everything was received. It remains to receive a new extract from the land book that our client is contributed by the owner of the property, and we can conclude a sales contract.
For our client, the discovery was a complete surprise. At the same time, he did not want to lose his buyer, to disappoint him. But all issues were resolved – we successfully carried out the transaction of purchase and sale, i.e. fulfilled the order given to us by the first client & ndash; seller. Now we have moved on to the next step & ndash; obtaining a residence permit by our second client & ndash; by the buyer. With this goal in mind, we have prepared a complete set of documents for the development of our client’s business in Germany, given instructions to partners who are engaged in the development of a business plan. After a certain time, when the property purchased by the buyer is restored in accordance with the conditions that we described above, a business plan has been prepared, it will be possible to file documents for obtaining a residence permit from our client.
We think that this article will be very interesting for businessmen in the countries of the former Union, which, given the instability of the economic situation in their countries, are interested in transferring their business & ndash; its greater or lesser part – abroad.
In conclusion, I want to give advice to our readers. It is understandable that when buying real estate, everyone wants to save money. However, this economy should be reasonable & ndash; on legal advice and legal support it is not worth saving, because the lawyer’s help in the future will pay back a lot, saving you dozens, and possibly hundreds of thousands of euros. How can a lawyer help you? Analyze the agreement, make a legal analysis of existing documents, give advice. For example, when buying an apartment in an apartment building where there are several owners, in accordance with German law, it is necessary to obtain the consent of all of them. As a rule, the interests of the owners are represented by one person & ndash; administrator (Hausverwaltung). If other owners or their representatives have doubts about the solvency, or the security of the new owner, you may not be given permission to purchase an apartment in this house. As a result, you will not only waste time, but also money.
An attorney who has not only a license on the status of a lawyer, but also considerable work experience, will advise you how to secure your rights, to avoid undesirable consequences and unpleasant surprises, will help not only to acquire immovable property without encumbrance, but also to solve many other serious issues.
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Very often I hear this from my acquaintances that it is cheaper to buy a real estate now. I once bought it for narmalnye money. although there is an area of 120 squares. And now it is as if you can buy the same housing for a smaller amount.