It is not uncommon for real estate to be part of an estate. But what should you do if you inherit a property in Germany and want to sell it while living abroad? This article highlights the legal and practical challenges you may face.
- Inheritance of the Property
Upon the death of the decedent, the heirs—either named in a will or according to the rules of intestate succession—assume the legal position of the deceased. This means they also take over ownership of the property, provided it is part of the estate. As the owner, you have the right to sell the property.
- Updating the Land Register
Ownership is documented in the land register. Since the deceased is usually still listed as the owner, the land register must be updated. This update is made upon request to the land registry office. To do so, you must prove your status as heir. Depending on whether there is a will or the inheritance follows statutory succession, a certificate of inheritance may be required.
If there is no will or only a handwritten will, a certificate of inheritance is generally required to update the land register. This certificate serves as proof of heirship to the land registry. It is issued by the competent probate court upon request and after reviewing the inheritance situation. An application for the certificate can also be submitted from abroad—usually through the German foreign mission. Certified documents such as birth and death certificates may need to be included with the application. It must also be clarified whether the inheritance is governed by foreign law and whether a certificate limited to the assets located in Germany is required.
If there is a notarized will, it is sufficient to submit the notarized will along with the probate court’s certificate of execution of the will.
The land register can be updated free of charge within two years of the inheritance. If the property is to be sold shortly after the inheritance, the land register is often updated directly in conjunction with the transfer of ownership to the buyer.
III. Sale of the Property by the Heirs
If you are planning to sell the property, it is advisable to engage a real estate agent. While a broker’s fee applies upon a successful sale, it can be particularly beneficial for heirs living abroad to have a neutral, professional party with access to the property. In addition to preparing a valuation report (which can also be useful for inheritance tax purposes), the agent can obtain other necessary documents from the relevant authorities.
Typically, the agent handles communication between buyer and seller. When drafting the contract, it is advisable to involve a lawyer to review the standard contract for individual risks. Since most heirs abroad are unfamiliar with the property’s condition, particular attention should be paid to liability clauses. It is recommended to exclude potential liability risks as far as legally permissible.
- Finalizing the Purchase Agreement
The sale of a property or land in Germany must be carried out by notarized contract. The seller’s personal presence at the notary appointment is not required. However, the notarized purchase agreement generally must be signed by both parties before a notary. It is customary for both parties to attend the notary appointment in person.
If the seller resides abroad, they can appoint someone to represent them at the notary appointment.
This representation usually occurs without power of attorney, followed by a declaration of approval. In this case, the seller is represented by someone who does not yet have formal authorization, and who simply signs the contract on their behalf. No prior review of the contract takes place at this stage.
The notarized contract is temporarily invalid after signing until the seller approves the declaration made by the unauthorized representative. This ensures the seller is fully informed of the final contract contents before being legally bound. The declaration of approval is signed before the official at the German foreign mission, who certifies the signature. Once the notary in Germany receives this certified approval, it is combined with the purchase contract, and the contract becomes legally effective.
Alternatively, the seller can grant notarized power of attorney to another person, authorizing them to sign the contract at the notary appointment in Germany.
If this representative has proper notarized power of attorney, the contract can be immediately finalized at the notary appointment in Germany. This avoids the need for post-signing approval but carries the risk that changes could be made to the contract during the appointment that the seller abroad would then be bound by without further input.
Once the notarized contract is valid, the purchase price is paid, and the land register is updated accordingly. As soon as the buyer is registered as the new owner, the heir is legally released from any obligations concerning the property.
We are happy to provide and support you with personalized advice regarding an inherited property all the way through to a successful sale.
Selling a Property Inherited in Germany from Abroad
It is not uncommon for real estate to be part of an estate. But what should you do if you inherit a property in Germany and want to sell it while living abroad? This article highlights the legal and practical challenges you may face.
- Inheritance of the Property
Upon the death of the decedent, the heirs—either named in a will or according to the rules of intestate succession—assume the legal position of the deceased. This means they also take over ownership of the property, provided it is part of the estate. As the owner, you have the right to sell the property.
- Updating the Land Register
Ownership is documented in the land register. Since the deceased is usually still listed as the owner, the land register must be updated. This update is made upon request to the land registry office. To do so, you must prove your status as heir. Depending on whether there is a will or the inheritance follows statutory succession, a certificate of inheritance may be required.
If there is no will or only a handwritten will, a certificate of inheritance is generally required to update the land register. This certificate serves as proof of heirship to the land registry. It is issued by the competent probate court upon request and after reviewing the inheritance situation. An application for the certificate can also be submitted from abroad—usually through the German foreign mission. Certified documents such as birth and death certificates may need to be included with the application. It must also be clarified whether the inheritance is governed by foreign law and whether a certificate limited to the assets located in Germany is required.
If there is a notarized will, it is sufficient to submit the notarized will along with the probate court’s certificate of execution of the will.
The land register can be updated free of charge within two years of the inheritance. If the property is to be sold shortly after the inheritance, the land register is often updated directly in conjunction with the transfer of ownership to the buyer.
III. Sale of the Property by the Heirs
If you are planning to sell the property, it is advisable to engage a real estate agent. While a broker’s fee applies upon a successful sale, it can be particularly beneficial for heirs living abroad to have a neutral, professional party with access to the property. In addition to preparing a valuation report (which can also be useful for inheritance tax purposes), the agent can obtain other necessary documents from the relevant authorities.
Typically, the agent handles communication between buyer and seller. When drafting the contract, it is advisable to involve a lawyer to review the standard contract for individual risks. Since most heirs abroad are unfamiliar with the property’s condition, particular attention should be paid to liability clauses. It is recommended to exclude potential liability risks as far as legally permissible.
- Finalizing the Purchase Agreement
The sale of a property or land in Germany must be carried out by notarized contract. The seller’s personal presence at the notary appointment is not required. However, the notarized purchase agreement generally must be signed by both parties before a notary. It is customary for both parties to attend the notary appointment in person.
If the seller resides abroad, they can appoint someone to represent them at the notary appointment.
This representation usually occurs without power of attorney, followed by a declaration of approval. In this case, the seller is represented by someone who does not yet have formal authorization, and who simply signs the contract on their behalf. No prior review of the contract takes place at this stage.
The notarized contract is temporarily invalid after signing until the seller approves the declaration made by the unauthorized representative. This ensures the seller is fully informed of the final contract contents before being legally bound. The declaration of approval is signed before the official at the German foreign mission, who certifies the signature. Once the notary in Germany receives this certified approval, it is combined with the purchase contract, and the contract becomes legally effective.
Alternatively, the seller can grant notarized power of attorney to another person, authorizing them to sign the contract at the notary appointment in Germany.
If this representative has proper notarized power of attorney, the contract can be immediately finalized at the notary appointment in Germany. This avoids the need for post-signing approval but carries the risk that changes could be made to the contract during the appointment that the seller abroad would then be bound by without further input.
Once the notarized contract is valid, the purchase price is paid, and the land register is updated accordingly. As soon as the buyer is registered as the new owner, the heir is legally released from any obligations concerning the property.
We are happy to provide and support you with personalized advice regarding an inherited property all the way through to a successful sale.