Many buyers believe that signing the purchase agreement means the property belongs to them—but that is not true. Only the conveyance and the subsequent entry in the land register make the buyer the legal owner. We explain exactly what the conveyance is, how it differs from the merely securing priority notice of conveyance, and at what point ownership actually transfers.
What Is the Conveyance?
The conveyance is the agreement under property law between the seller and buyer that ownership of a plot of land is to pass from one person to the other. It is governed by Section 925 of the German Civil Code (BGB) and must be declared in the simultaneous presence of both parties before a competent authority. Without prejudice to other competent authorities, any notary is competent.
The distinction between the contractual and property-law aspects of a real estate purchase is crucial. The notarized purchase agreement (Section 311b BGB) merely establishes the obligation to transfer ownership. The conveyance, by contrast, is the property-law transaction fulfilling that obligation—the actual agreement on the change of ownership that opens the way to the land register.
The conveyance permits no uncertainty: under Section 925 (2) BGB, a conveyance declared subject to a condition or a specification of time is invalid. The transfer of ownership therefore cannot be tied to a clause such as “as soon as the purchase price has been paid.” In practice, this protection is provided by the purchase price becoming due and by the priority notice—not by the conveyance itself.
When Does Ownership Really Transfer?
This is where the most common misunderstanding lies. Neither signing the purchase agreement nor the conveyance alone makes you the owner. Under Section 873 BGB, two things are required for ownership of a plot of land to transfer:
- agreement on the transfer of ownership (the conveyance), and
- entry of the change in rights in the land register.
Ownership changes only when both requirements have been met. The decisive point in time is the change of ownership recorded in the land register—more precisely: the entry of the buyer as the new owner in Section I. Until then, the seller remains the legal owner, even if the buyer has long since paid the purchase price.has paid and perhaps has already moved in.
The land registry office itself may also carry out the transfer of ownership pursuant to Section 20 GBO only if the required agreement—that is, the conveyance—has been demonstrated to it. The conveyance is therefore the key without which registration, and with it the transfer of ownership, is impossible.
Conveyance and priority notice: the crucial difference
Both terms sound similar, but mean entirely different things. Confusing them is the most common mistake when it comes to the transfer of ownership.
- The conveyance is the substantive agreement on the transfer of ownership (Section 925 BGB). Together with registration in the land register, it effects the actual transfer of ownership.
- The priority notice is, by contrast, merely a protective instrument (Section 883 BGB). It does not yet make the buyer the owner, but merely secures their claim to the subsequent transfer of ownership.
The priority notice is entered in Section II of the land register shortly after notarization. Its protective effect is considerable: Any disposition the seller makes regarding the property after registration of the priority notice—such as a second sale or a new encumbrance—is ineffective vis-à-vis the buyer in whose favor the notice was registered, insofar as it prejudices their claim. The protection even applies in compulsory enforcement proceedings and in the seller’s insolvency. Thus, in the meantime, the seller can neither sell the property a second time nor secretly encumber it with debts.
Put simply: The priority notice reserves the buyer’s place, while the conveyance, together with registration, gives them ownership.
Process: from notarization to registration of the transfer
In practice, the conveyance is often declared already in the purchase agreement. However, the notary is instructed to apply to the land registry office for registration of the transfer of ownership only once all requirements have been met. The typical process is as follows:
Step 1: Notarization of the purchase agreement
The notary notarizes the purchase agreement. The deed often already contains the conveyance declaration; sometimes the conveyance is completed at a separate appointment.
Step 2: Registration of the priority notice
The notary promptly arranges for the priority notice to be registered. From this moment, the buyer is protected against a double sale and new encumbrances.
Step 3: Due Date and Payment of the Purchase Price
Once the priority notice has been entered, the cancellation documents for any old land charges are available and official approvals (such as the municipality waiving its pre-emption right) have been granted, the notary notifies the parties that the purchase price is due. The buyer pays.
Step 4: Tax Clearance Certificate from the Tax Office
The buyer pays the real estate transfer tax. Only then does the tax office issue the so-called tax clearance certificate. Without this certificate, the buyer may not be registered as the owner pursuant to Section 22 GrEStG.
Step 5: Registration of the Transfer of Ownership in the Land Register
Once the conveyance, tax clearance certificate and all other evidence have been submitted, the land registry office registers the buyer as the new owner. Only now – and not a day earlier – does ownership transfer.
How much does the conveyance cost?
The conveyance is not a separately calculated item, but part of the notary and land registry costs of purchasing the property. As a rough guide:
- Registration of the priority notice costs around 0.2 to 0.3 percent of the purchase price.
- Notary and land registry costs combined are usually around 1.5 to 2.0 percent of the purchase price.
In practice, these costs are borne by the buyer. In addition, there is the real estate transfer tax, which ranges between 3.5 and 6.5 percent of the purchase price depending on the federal state. From notarization to final registration, the process usually takes several weeks to several months, depending on the land registry office’s processing time – not infrequently three to six months.
FAQ on the Conveyance
Am I already the owner once the conveyance has taken place?
No. The conveyance is only the agreement on the transfer of ownership. You become the owner only upon registration in the land register (Section 873 BGB). Until then, the seller is still legally the owner.
What is the difference between a conveyance and a priority notice?
The conveyance is the substantive agreement that, together with registration in the land register, transfers ownership. The priority notice, by contrast, merely secures your claim to this transfer and does not yet make you the owner.
Can the conveyance be made subject to conditions?
No. Pursuant to Section 925 (2) BGB, a conveyance declared subject to a condition or a time limitation is invalid. It must be unconditional. Therefore, the transfer of ownership is handled via the The due date for the purchase price and the priority notice are secured, not through a condition in the conveyance itself.
How long does it take from the conveyance to the registration of the new owner?
This depends on fulfillment of the purchase agreement conditions and the processing time of the land registry office. Realistically, it takes several weeks to months; you should allow around three to six months from the notary appointment to the registration of the new owner.
Who declares the conveyance?
The seller and buyer declare the conveyance jointly and while simultaneously present before the notary. Representation by notarized power of attorney is also possible – for example, by a notary’s employee if one party cannot appear in person.
What happens if the seller becomes insolvent or dies between the priority notice and the registration of the new owner?
The priority notice protecting the conveyance also protects you in these cases. Your claim to transfer of ownership remains in force and applies against heirs, creditors, and the insolvency administrator. That is precisely what the priority notice is intended for.
Conclusion: Only the land register provides clarity
The conveyance is the notarized agreement on the transfer of ownership – but by itself, it does not yet make you the owner. Only the combination of the conveyance and registration in the land register completes the transfer of ownership. Until the registration of the new owner, the priority notice reliably protects you against double sales and new encumbrances. Anyone familiar with this process knows exactly from when the property truly belongs to them – and will not be lulled into a false sense of security by signing the purchase agreement.