Prior notice of conveyance in the land register: significance, duration and costs

The priority notice of conveyance legally protects the buyer of a property. It is entered in the land register and guarantees the transfer of ownership to the buyer. Despite a signed purchase contract, the buyer only becomes the legal owner once it has been entered in the land register. The priority notice prevents multiple sales and is noted by the notary in section II of the land register. The priority notice of conveyance is therefore essential. The costs for registration vary and can be obtained from the relevant land registry office. This guide summarizes all the important information.

What is a priority notice of conveyance?

The priority notice of conveyance is an entry in the land register that protects the buyer from the seller selling or encumbering the property in any other way between the conclusion of the purchase agreement and the actual transfer of ownership. It secures the buyer's claim to the transfer of ownership.

Function and significance of the priority notice of conveyance

The priority notice of conveyance is a key instrument in German real estate law that serves to secure the rights of the buyer of a property.

The main function of the priority notice of conveyance lies in its protective mechanism. As soon as it is entered in the land register, it ensures that no further disposals of the property can be made by the seller without the consent of the buyer. This means, for example, that a new sale or the registration of a mortgage is not possible.

Another important aspect is protection from the seller's creditors. If the seller becomes insolvent after the purchase agreement has been concluded, the buyer's claim to transfer of ownership remains and the property cannot be used to satisfy creditors.

The difference between conveyance and priority notice of conveyance

The terms 'conveyance' and 'priority notice of conveyance' are important elements in German real estate law, but differ in their function and meaning. They differ as follows:

Conveyance

The conveyance is the legal agreement between the buyer and the seller regarding the transfer of ownership of a property. It is an important part of the transfer of ownership and is notarized. The conveyance is necessary in order to complete the transfer of ownership in the land register.

Essential features of the conveyance are:

• Notarization: The conveyance must be declared before a notary.
• Agreement: Both parties, buyer and seller, must agree on the transfer of ownership.
• Registration in the land register: After the conveyance, the actual transfer of ownership can take place in the land register.

Prior notice of conveyance

The prior notice of conveyance, on the other hand, is a security notice in the land register that protects the buyer before the transfer of ownership has taken place through the conveyance and the final land register registration. It serves to secure the buyer's claim to transfer of ownership and to prevent any interim dispositions by the seller.

The main features of the priority notice of conveyance are:

• Registration in the land register: The priority notice is entered in the land register to secure the buyer's claim.
• Protective function: It protects the buyer from the seller selling or encumbering the property in any other way.
• Preliminary security: The priority notice remains in place until the final transfer of ownership has been completed.

Summary of differences

• Purpose: The conveyance serves the actual transfer of ownership, while the priority notice of conveyance secures the claim to this transfer.
• Time and function: The conveyance takes place at the end of the purchase process and is the legal basis for the transfer to the land register. The priority notice of conveyance, on the other hand, is entered as soon as the purchase contract is concluded in order to protect the buyer until the final transfer.
• Legal effect: The conveyance is an agreement on the transfer of ownership that must be notarized. The priority notice of conveyance is an entry in the land register that secures the buyer's future ownership claim.