A signed purchase agreement is only worth as much as the buyer’s ability to pay behind it. If the financing falls through after the notary appointment, you lose weeks, may be left with costs, and have to put your property back on the market. You should therefore assess the creditworthiness of every serious prospective buyer before committing yourself. We show you which documents you may request, how to select the buyer with the greatest payment security from among several applicants, and how to protect yourself additionally in the purchase agreement.
Why assessing creditworthiness before the notary appointment is so important
The purchase agreement for a property must be notarized (Section 311b of the German Civil Code (BGB)). From notarization onward, you and the buyer are firmly bound. If the buyer then fails to pay the agreed purchase price, you can withdraw from the agreement after setting a reasonable deadline (Section 323 BGB) and demand default interest and damages—but it often takes months to resolve the matter.
Making matters worse: As long as the priority notice of conveyance registered in favor of the buyer (Section 883 BGB) remains in the land register, you cannot sell the property to someone else. In the worst case, you may have to enforce its deletion through the courts. Careful prior assessment is therefore the most effective protection—and costs you only a few questions and documents.
These three documents demonstrate the ability to pay
Do not rely on a single document; instead, form an overall picture from several components:
- Bank financing confirmation: the most meaningful proof. The financing bank declares therein that it will finance the purchase. Make sure the confirmation refers specifically to your property and the agreed purchase price and contains no outstanding conditions. A non-binding preliminary assessment or a mere printout from a loan calculator is no substitute for a specific commitment.
- Proof of equity: Solid financing rests on sufficient equity. As a rule of thumb, buyers should cover at least the ancillary purchase costs—real estate transfer tax, notary, land register and, where applicable, broker’s commission—as well as ideally around 20 percent of the purchase price from their own funds. Current bank account or securities account statements serve as proof.
- SCHUFA self-disclosure: It provides information about payment history and any negative features. Important: Only the buyer can provide this disclosure (more on this below).
Select the buyer with the most secure payment ability in six steps
If you have several interested parties, following a set procedure will help you select the most reliable one – regardless of who makes the most likeable impression.
Step 1: Ask about the financing status early on
Discuss the financing status as early as the viewing. Those buying with cash or secured financing can generally state this openly. Evasive answers are an initial warning sign.
Step 2: Request a binding financing confirmation
Ask serious interested parties for written financing confirmation from their bank. Check whether the amount, property and date are correct and whether the commitment is still valid. Recent confirmations are more reliable than those several months old.
Step 3: Plausibilize the equity capital
Have the equity portion documented. The higher the equity contribution, the more stable the financing – and the lower the risk that the bank will back out shortly before disbursement.
Step 4: Request SCHUFA self-disclosure
Ask the buyer to provide you with a current SCHUFA self-disclosure. The free data copy pursuant to Art. 15 GDPR contains all stored entries, including the score, and is well suited as proof. Look out for outstanding payment problems or negative entries.
Step 5: Assess seriousness and overall impression
Numbers are not everything. Does the interested party appear dependable, keep commitments and respond reliably? Experience shows that a buyer who provides documents promptly and completely is also reliable regarding the purchase price.
Step 6: Record safeguards in the purchase agreement
Agree on the customary safeguards with the notary: The purchase price only becomes due once the priority notice of conveyance has been registered and the notary has notified the parties of the due date in writing. If there is a particular need for security, a notary escrow account can also be agreed – however, this incurs additional costs and is only advisable in special cases.
SCHUFA and data protection: What you may – and may not – do
As a private seller, you may not obtain SCHUFA information about the buyer. Credit agencies only provide creditworthiness data about third parties where there is a based on a legitimate interest; the requirements for this are high and are generally not met in ordinary real estate sales. The permissible approach is therefore voluntary self-disclosure, which the buyer provides to you. Which information may be included in a credit report at all and under what conditions probability values may be used is governed by Section 31 BDSG.
A look is particularly worthwhile in 2026: With the new SCHUFA score, which applies from 17 March 2026, the assessment will become more transparent. Instead of a percentage, there will be a points scale from 100 to 999, based on twelve clearly identified criteria. Consumers will also be able to view their score free of charge every day in their digital SCHUFA account. For buyers, this means they can demonstrate their creditworthiness more easily. For you as the seller, the information provided will consequently be easier to understand.
How to recognize an uncertain buyer
Some of these points need not mean anything on their own—but if they accumulate, caution is advised:
- evasive or changing information about financing
- no financing confirmation or only a non-binding one
- conspicuously little or no equity
- pressure for a very quick notary appointment without verifiable documents
- desire for unusual contractual arrangements, such as payment of the purchase price in installments
- outstanding negative entries in the SCHUFA self-disclosure
FAQ on checking the buyer’s creditworthiness
As a seller, may I obtain a SCHUFA report on the buyer myself?
No. A credit report on another person requires a legitimate interest, which is generally not recognized in private real estate sales. Instead, ask the buyer for their own SCHUFA self-disclosure.
What is the difference between a financing confirmation and a financing commitment?
A financing confirmation signals the bank’s general willingness and is often still subject to conditions. A binding loan commitment is the more reliable stage. Before the notary appointment, pay attention to how specific and binding the document is worded.
How much equity should a buyer bring?
As a guideline: at least the ancillary purchase costs from their own funds, and preferably an additional approximately 20 percent of the purchase price. The more equity, the more stable the financing—but no fixed ratio is mandatory.
May I reject a buyer because of poor creditworthiness?
Yes. As the seller, you are free to decide with whom you conclude the contract. You are not obliged to sell to the highest bidder or the first interested party, and you may make payment security a selection criterion.
What happens if the buyer does not pay after notarization?
You can place them in default, demand default interest and, after an unsuccessful deadline has expired, withdraw from the contract (§ 323 German Civil Code (BGB)). Because this is time-consuming and the priority notice of conveyance blocks the property for a while, checking in advance is significantly easier than subsequent unwinding of the transaction.
Conclusion: Payment security before personal preference
Checking the buyer’s creditworthiness is not distrust, but prudent business practice. Request reliable proof of financing, have the buyer show you proof of equity and a current SCHUFA self-disclosure, and look for a coherent overall impression. Whoever selects the most payment-secure buyer from among several interested parties and uses the customary safeguards in the purchase agreement not only sells at the best price, but above all reliably.