Buying and selling a property – good to know ..

Process of buying a property:

When looking for a suitable property, there are numerous portals on which you can filter and find property offers according to your personal search criteria.

Do you have an object in mind and want to take the next step? Then contact the real estate agent. This appointment usually takes place on site at the property – if there is a specific interest, salespeople, be it the owner or property developer, come together with the real estate agent and the customer at a second appointment.

This is where the submitted documents are discussed and discussed and any open questions are clarified, and requests for changes or additions are recorded.

Subsequently, if all parties agree, a reservation agreement is made and a binding purchase offer is then made.

In many cases, a purchase offer is made immediately. This includes all essential data of the buyer / seller as well as the data of the property to be acquired, including the purchase price. With the purchase offer, the purchase is legally binding as soon as it has been signed by both the buyer and the seller under the stated conditions and within the specified period.

It is then sent to the trustee, usually a lawyer, together with the property documents for drawing up the purchase contract.

This regulates the handover date, among other things.

Finally, the contract is notarized and the information is forwarded to the land registry.

What are the additional purchase costs?

The following costs are usually incurred when purchasing a condominium / property, see ÖVI form no. 13K / 11/2017:

• 3.5% real estate transfer tax (of the purchase price) 1.1% registration fee (of the purchase price)
• possibly 1.2% registration fee for a mortgage loan (of the loan amount)
• Costs of drawing up a contract: The costs of drawing up a contract are regulated in the tariff regulations of the respective contractor (notary or lawyer). In addition, there are cash expenses for certification and stamp fees. These costs are usually between two and four percent of the purchase price.

Real estate agent costs. usually 3% (of the purchase price) plus 20% sales tax

PDF ÖVI form No. 13K / 11/2017

When does the handover take place and when does the purchased property belong to me?

As a rule, a handover date is agreed with a lawyer / notary who draws up the purchase contract. At this point in time, the agreed purchase price must be transferred to the seller, after which the keys will be handed over. In most cases this is handled through an escrow account on the part of the acting trustee, the attorney or notary. He manages the money and releases the funds as soon as all the framework conditions are met.