When purchasing property, the buyer pays not only the purchase price but also fees to the land registry office—for the priority notice of conveyance, the transfer of ownership, and the registration of the new land charge. Together, these land registry costs amount to around 0.5 percent of the purchase price and are regulated uniformly throughout Germany. We explain which items are incurred, how high they are, and how they differ from notary fees.
What are land registry costs?
Land registry costs are the fees charged by the land registry office—a department of the local court—for entries in the land register. They arise because every change of ownership and every encumbrance of a property must be officially documented in the land register. The buyer only becomes the legal owner upon registration.
The amount of the fees is not negotiable but prescribed by law: The Court and Notary Costs Act (GNotKG) stipulates a fixed fee rate for each official act. The basis is always the transaction value—for a transfer of ownership, the purchase price; for a land charge, the loan amount. This value is used to determine a full fee (factor 1.0) via the fee table (Annex 2 to Section 34 GNotKG), which is multiplied by a fixed rate depending on the official act.
Unlike notary fees, land registry fees are not subject to VAT because the land registry office is a state authority.
Which land registry fees are incurred when buying?
In a typical financed property purchase, three land registry fees are incurred, which are borne by the buyer. They are regulated in the schedule of costs (Annex 1 to the GNotKG):
- Priority notice of conveyance (0.5 fee, KV 14150): It protects the buyer between the conclusion of the contract and the final transfer of ownership and prevents the seller from selling or encumbering the property a second time. The assessment basis is the purchase price.
- Transfer of ownership (1.0 fee, KV 14110): The full fee based on the purchase price is charged for registering the buyer as the new owner. This is usually the most expensive of the three items.
- Land charge registration (1.0 fee, KV 14121): Anyone financing the purchase has a land charge registered in favor of the bank. The assessment basis here is not the purchase price but the loan amount.
The The priority notice of conveyance is based on the priority notice pursuant to § 883 BGB. Anyone who pays in cash and does not require financing saves the land charge fee completely.
Calculation example: land registry costs for 400,000 euros
Assume that you purchase a property for 400,000 euros and finance it with a loan of 320,000 euros, for which a land charge is registered. The following fees are then incurred at the land registry office:
- Priority notice of conveyance (0.5 of €400,000): 392.50 euros
- Transfer of ownership (1.0 of €400,000): 785.00 euros
- Registration of land charge (1.0 of €320,000): 635.00 euros
- Total land registry costs: approximately 1,813 euros
This corresponds to approximately 0.45 percent of the purchase price. As a rule of thumb, you can expect around 0.5 percent. The significantly higher notary costs are added to this – together, the two generally amount to between 1.5 and 2 percent of the purchase price.
Land registry costs and notary costs: the difference
Land registry costs and notary costs are often mentioned in the same breath, but they are two separate items with different recipients:
- The notary notarizes the purchase agreement and the order of the land charge, examines the registration requirements and arranges the registrations. His fees are also based on the GNotKG, but are higher – for example, a 2.0 fee for notarizing the purchase agreement – and are additionally subject to 19 percent VAT.
- The land registry office carries out the actual registrations. Its fees are the approximately 0.5 percent described here – without VAT.
In practice, the notary often combines both in one invoice because they collect the land registry fees. The two cost blocks nevertheless remain separate.
Real estate transfer tax is not included among the land registry costs. At 3.5 to 6.5 percent of the purchase price, it is by far the largest ancillary cost item and is paid to the tax office. Important: The land registry office only transfers ownership once the tax office has confirmed payment of the real estate transfer tax with a clearance certificate (§ 22 GrEStG).
Who pays what: buyer and seller
The land registry costs are not solely the buyer’s responsibility – part of them concerns the seller:
- The buyer bears the costs arising from the purchase: the priority notice of conveyance, transfer of ownership and registration of the new land charge. This is the majority.
- The seller generally bears the costs of deleting old encumbrances. If the property is still encumbered by a land charge from the seller’s previous financing, it must be deleted so that the buyer receives unencumbered ownership. A 0.5 fee is charged for the deletion (KV 14140), plus notary fees for certifying the deletion authorization.
This allocation is customary but not mandatory – what matters is what is agreed in the purchase contract. In the vast majority of contracts, however, the rule is: Whoever caused the encumbrance bears the costs of removing it.
Process: From the priority notice to the change of registration
The registrations do not take place all at once, but in a fixed sequence:
- After notarization of the purchase contract, the land registry office initially registers the priority notice of conveyance – often within one to two weeks.
- The seller has existing land charges deleted, while the buyer has the new land charge for their bank registered.
- Once the purchase price has been paid, the real estate transfer tax settled, and all evidence – including the certificate of clearance – is available, the buyer is registered as the new owner.
The final change of ownership registration often takes several weeks to months. During this period, the priority notice of conveyance ensures that your position as the buyer remains protected.
Can you save on land registry costs?
The fee rates themselves are legally fixed and the same nationwide – there is no room for negotiation here. Savings can primarily be made on the land charge:
- Register only the required land charge amount: The basis for assessment is the land charge amount. Securing only the actual loan instead of a rounded-up amount keeps the fee low.
- Take over an existing land charge: If a land charge that is no longer outstanding is already registered, assigning it to the new bank may be less expensive than registering a new one.
- Book land charge instead of certificate land charge: The certificate land charge is subject to a higher fee (1.3 instead of 1.0).
There is nothing to optimize for the priority notice of conveyance and change of ownership registration themselves – they are a fixed part of every purchase.
FAQ on land registry costs
How high are the land registry costs when buying a house?
As a rule of thumb: around 0.5 percent of the purchase price. For a purchase price of 400,000 euros and financing, this amounts to approximately 1,800 euros for the priority notice of conveyance, Registration of ownership and land charge together. The exact amount is set out in the fee table of the GNotKG.
Are land register costs and notary fees the same?
No. Land register costs are paid to the land registry office for the registrations, while notary fees are paid to the notary for notarization and processing. Both are based on the GNotKG, but notary fees are higher and subject to 19 percent VAT, whereas land registry fees are not.
Who pays the land register costs – buyer or seller?
The buyer bears the costs for the priority notice of conveyance, registration of ownership and the new land charge. The seller usually only pays for the cancellation of their old land charges.
Are land register costs incurred even without financing?
Yes, but to a lesser extent. Without a loan, the fee for registering the land charge is omitted. However, the priority notice of conveyance and registration of ownership apply to every purchase.
When do I have to pay the land register costs?
As a rule, the land registry office invoices the fees after registration, often bundled through the notary. Include the land register costs in your ancillary purchase costs from the outset.
Conclusion: A small but fixed cost item
At around 0.5 percent of the purchase price, land register costs are the smallest of the three major ancillary cost items – after real estate transfer tax and notary fees. They consist of the priority notice of conveyance, registration of ownership and registration of the land charge, and are uniformly regulated nationwide under the GNotKG. Anyone planning their financing should budget for this item just as firmly as for the other ancillary purchase costs – and, for the land charge, ensure that only the amount actually required is registered.