Legal · Glossary

GrundbuchLand register

The legal source of truth for who owns a German property

3 min read·Updated December 2024

The Grundbuch is the official German land register, and it is the legal source of truth for who owns a property — not the contract, not the listing, not a verbal agreement.

What It Records

  • Ownership and any change of owner
  • Mortgages secured against the property (Grundschuld)
  • Encumbrances, rights of way, and exclusive-use rights (Sondernutzungsrechte)

Why It Matters

Ownership only transfers once the new owner is entered in the Grundbuch, which the Notar arranges after the purchase price is paid. Reviewing a current Grundbuch extract is a core due-diligence step before any purchase.

See where the Grundbuch fits in the purchase

Continue in the masterclass

Lesson 2.1 · How property investment works in Germany

The property lifecycle

Buying to owning to selling, the whole journey at a glance.

Lesson 2.4 · How property investment works in Germany

The notary process

The Notar, Kaufvertrag, Grundbuch and Auflassung, step by step.

Related Terms

Notar(Notary)

A Notar is a neutral, state-appointed official who is mandatory for every German property transfer. The Notar drafts and reads the purchase contract, handles the Grundbuch entry, and ensures both parties understand what they sign, but does not advise or negotiate for either side.

Property Transfer Tax(Grunderwerbsteuer)

Grunderwerbsteuer is a one-time tax paid when purchasing property in Germany. The rate varies by state (Bundesland) from 3.5% to 6.5% of the purchase price.

Mortgage(Hypothek / Immobiliendarlehen)

A mortgage (Hypothek or Immobiliendarlehen) is a loan secured by property. In Germany, typical terms include 10-30 year fixed interest rates and 1-3% annual repayment rates.

Planning a purchase?

Buying in Germany adds roughly 7% to 12% on top of the purchase price.

Transfer tax

3.5% to 6.5% of the price, set by the state.

Notary & registry

About 1.5% to 2%, fixed by law (GNotKG).

Agent commission

Usually around 3.57% as the buyer's share.

Run your full numbers How buying works here

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Grundbuch (Land register) | Financemate Glossary