Several weeks or even months often pass between signing at the notary and the day on which you are actually registered as the owner in the land register. The priority notice of conveyance is the safety anchor that protects you during precisely this critical phase—for example, against the property being sold a second time or encumbered with debts. We explain exactly what the priority notice of conveyance is, how it works, and why it must not be confused with the conveyance itself.
What is the priority notice of conveyance?
The priority notice of conveyance is a special form of priority notice that is entered in the land register and secures the buyer’s claim to the transfer of ownership. Legally, it is based on Section 883 of the German Civil Code (BGB): A claim “to grant or cancel a right to a plot of land” may be secured by a priority notice. It is entered in Section II of the land register.
The decisive effect is set out in Section 883 (2) BGB: A disposition concerning the plot of land made after the priority notice has been entered is ineffective “to the extent that it would frustrate or impair the claim”. Thus, if the owner sells the same property a second time after the priority notice or encumbers it with a land charge, this is ineffective insofar as it would interfere with your secured ownership claim. This so-called blocking effect is the core of the protection.
According to Section 885 BGB, the basis for registration is generally the seller’s consent—that is, their approval, which is usually already declared in the notarised purchase agreement. Alternatively, a court injunction may establish the priority notice.
Conveyance and priority notice of conveyance: the subtle but decisive difference
The two terms sound almost identical, but refer to two completely different things—and this is precisely where the most common misunderstandings arise.
The conveyance is the agreement under property law between the buyer and seller that ownership is to be transferred. It is governed by Section 925 BGB and must be declared in the simultaneous presence of both parties before a competent authority—in practice, the notary. Important: Under Section 925 (2) BGB, the conveyance may not be subject to a condition or Time determination. Only the Auflassung together with registration in the land register effects the actual transfer of ownership pursuant to Section 873 of the German Civil Code (BGB).
The Auflassungsvormerkung (priority notice) is not a transfer of ownership, but merely its reservation. It records your future claim in the land register and keeps your place open until all requirements for the final transfer have been met. In short:
- Auflassung: the agreement on the transfer of ownership itself (Section 925 BGB).
- Auflassungsvormerkung: securing your claim to this transfer until registration (Section 883 BGB).
Why the priority notice is so important
The reason lies in a gap in the process of every property purchase. Notarization of the purchase agreement does not yet make you the owner. Ownership is transferred only once the Auflassung has been declared and the change of ownership has been entered in the land register (Section 873 BGB). Several weeks to months frequently lie between these two points in time.
During this interim period, the economically most critical situation occurs: as a rule, you have already paid the purchase price, but you have not yet been registered as the owner. Without protection, you would bear a considerable risk. The priority notice closes this gap and protects you, among other things, against the seller
- selling the property a second time to a third party,
- subsequently encumbering it with a mortgage or land charge,
- the seller’s creditors enforcing compulsory execution or an attachment,
- the seller becoming insolvent – the secured claim remains in existence under Section 883(2) BGB even in insolvency proceedings.
In addition, pursuant to Section 883(3) BGB, the priority notice secures priority: your subsequent ownership right receives priority from the date the priority notice was entered – and not only from the date of the final transfer.
Process: from registration to deletion
In practice, the priority notice usually operates unnoticed in the background. Typically, the steps are as follows:
Step 1: Notarization of the purchase agreement
At the notary appointment, the purchase agreement is notarized. In the same deed, the seller usually consents to the registration of the priority notice in favor of the buyer.
Step 2: Application to the land registry office
The notary submits the required documents to the land registry office and applies for registration of the priority notice in Section II.
Step 3: Registration of the priority notice
The land registry office registers the priority notice. Depending on the office’s workload, this usually takes two to four weeks. From this moment, the protective effect applies.
Step 4: Maturity and Purchase Price Payment
Only once the priority notice has been registered and further requirements have been met does the notary notify you that payment is due. You now pay the purchase price – secured by the priority notice.
Step 5: Transfer of Ownership
After payment, submission of the tax clearance certificate and deletion of any existing encumbrances, the change of ownership is entered in the land register. Only now are you the owner.
Step 6: Deletion of the Priority Notice
Once ownership has been transferred, the priority notice has fulfilled its purpose and is deleted. If the deletion takes place together with the transfer of ownership, it is generally fee-free.
What Does the Priority Notice Cost?
The costs are governed by the Court and Notary Costs Act (GNotKG) and are calculated based on the purchase price. The registration of the priority notice usually incurs half a fee (fee rate 0.5) – approximately half of what the later final registration of ownership costs. For a purchase price of 200,000 euros, the priority notice therefore costs around 200 euros.
As part of the ancillary purchase costs, the priority notice accounts for only a small proportion; total notary and land registry costs are generally around 1.5 to 2 percent of the purchase price. The costs of the priority notice are almost always borne by the buyer, as they serve to protect the buyer. They are among the classic ancillary purchase costs and should be factored into the financing from the outset.
Advantages and Disadvantages of the Priority Notice
The priority notice is now a standard component of practically every real estate purchase. The interests of the buyer and seller are distributed differently:
- Advantage for the buyer: From registration, your claim to ownership is comprehensively protected against a double sale, subsequent encumbrance and the seller’s insolvency.
- Advantage for the seller: The seller also benefits indirectly, because the secured interim phase makes payment of the purchase price possible in the first place and allows the sale to proceed smoothly.
- Advantage for both parties: The priority notice provides legal certainty and is the prerequisite for the buyer to pay without risk.
- Disadvantage – costs: The buyer incurs additional, albeit manageable, fees.
- Disadvantage – time: It takes several weeks for the priority notice to be entered, during which the purchase price is not yet due.
All in all, the advantages clearly outweigh the disadvantages – for the buyer, the priority notice is one of the most important safeguards of the entire purchase process.
FAQ about the Priority Notice
Is a priority notice mandatory?
It is not legally mandatory. In practice, however, it is standard and is virtually always required by financing banks, because without it no one would pay the purchase price without risk.
When do I become the owner – with the priority notice or only later?
Only later. The priority notice merely secures your claim. You become the owner only upon conveyance and registration of the change of ownership in the land register (§ 873 BGB).
How long does it take to register the priority notice?
Depending on the workload of the land registry office, usually two to four weeks. Only after that does the notary generally notify you that the purchase price is due.
Who pays for the priority notice?
As a rule, the buyer, since the priority notice serves to protect them. It is part of the ancillary purchase costs.
Does the priority notice have to be deleted again?
Yes, it is deleted after the change of ownership has been registered because it is then no longer necessary. If the deletion takes place together with the registration of the change of ownership, it is usually free of charge.
Does the priority notice also provide protection if the seller becomes insolvent?
Yes. Under § 883 subsection 2 BGB, your claim secured by the priority notice remains effective even if insolvency proceedings are opened against the seller’s assets.
Conclusion: small land-register entry, great protection
The priority notice is the safeguard between signing the contract and registering the change of ownership. It is not the conveyance itself, but reserves the future transfer of ownership to you and makes advance payment of the purchase price safe in the first place. For a few hundred euros, it protects you against a double sale, subsequent encumbrance, and the seller’s insolvency. Anyone buying a property should therefore not view the entry in Section II of the land register as an annoying formality, but as one of the central safeguards of the entire purchase process.