Real estate law
Attorney Fürstenow advises and represents clients on legal issues relating to land and real estate.
Property purchase contracts
Prevention of financing gaps
Apartment purchase contracts
Support of brokers and developers
Loan financing of the real estate purchase agreement
Advice to condominium owners
Real Estate Law
Attorney Fürstenow advises and represents clients on legal issues relating to land and real estate. In particular, this concerns the drafting of contracts for real estate purchase, agreements or contracts for the sale of apartments, also – as an intersection with banking law – the coordination of the purchase agreement and the real estate loan agreement in a real estate purchase financed by a loan (power of attorney, encumbrance on real estate: land charge, mortgage, easements, etc.).
Drafting and negotiation of the real estate purchase agreement
Buyers or sellers of real estate commission a notary public for the notarisation of the property purchase agreement, who often provides a draft of a property purchase agreement. Or one of the parties to the contract, i.e. either the buyer or the seller of the real estate, brings his own draft contract. The other contracting party is well advised to have such a draft checked by a lawyer. This is because even if the notary or the contracting party have had good experience with their drafts: The contractual partner who provides the draft of the real estate purchase contract will, according to experience, bring along regulations that are more buyer-friendly as the buyer and more seller-friendly as the seller. And even the notary’s tried and tested drafts of real estate purchase contracts can show either buyer- or seller-friendly tendencies.
Furthermore, in many cases even the best-thought-out draft contract is rarely fully applicable to the specific individual case of the buyer or seller. Since a lot of money is usually involved in the purchase and sale of real estate, the purchase contract and, if applicable, the loan agreement as well as the relationship of both contracts to each other should not contain any (hidden) traps, gaps or obstacles which may sometimes only become apparent years later, often at any rate too late. Moreover, it is not only legitimate but also common practice for the property purchase agreement or condominium purchase agreement to be negotiated. And this right and opportunity should not be given away. There is no such thing as a 100% “secure” contract. Life is too diverse for that. But by checking and making necessary additions and amendments, the (later) risks can be minimised considerably. In his many years of practice, attorney Sascha C. Fürstenow has also found that after such an examination of the legal and factual circumstances, he has strongly advised against concluding the purchase contract.
Attorney Fürstenow advises on contract negotiations for property purchase contracts and condominium purchase contracts and examines both the draft purchase contracts provided by the other party or the notary public and, in the case of the purchase of condominiums, the often much more extensive declaration of division and resolutions of the condominium owners’ association.
Loan financing of the real estate purchase agreement
In the case of loan financing of the real estate purchase agreement or the residential property purchase agreement, the so-called power of attorney for encumbrance must also be observed, which must be coordinated with the real estate financing loan agreement. The encumbrance power of attorney is regulated in the real estate purchase agreement and grants the real estate buyer, even before he becomes the owner of the property or apartment, to encumber the land register with a security land charge in favour of the bank financing the loan in order to finance the purchase price.
Prevention of financing gaps
In the context described above, it is important that the buyer of the land or residential property does not have any financing gaps. Such a gap can be caused, for example, by the loan financing bank making the payment of the purchase price to the seller dependent on the entry of a land charge in the land register as security.
In the case of a real estate purchase agreement in which the seller as the developer also undertakes to build the house in the first place, it sometimes happens that there is a separate land register for the entire building plot, but not (yet) for the sold part of the plot, in which a land charge in favour of the loan financing bank could be entered. If in such a case the bank does not pay out, although the buyer has to pay the purchase price according to the provision in the purchase agreement, a time gap arises which could lead to the seller withdrawing from the real estate purchase agreement due to non-fulfilment of the agreement, so that the buyer does not (no longer) receive the real estate.
In connection with the (planned) acquisition of a property, attorney Fürstenow also examines the loan agreement financing the acquisition for its necessary compatibility with the purchase agreement. In this context, the so-called encumbrance power of attorney is important, i.e. the right to create a land charge as security for the property or the flat, although the buyer only becomes the owner at a later date. On the buyer’s side it is important that the power of attorney to charge is agreed with the financing bank and accepted by the bank. On the seller’s side, it is important that the encumbrance power of attorney only grants the buyer (and his bank) the necessary freedom and is not used to the detriment of the seller. The experience of attorney Fürstenow in both real estate law and banking law comes into play here.
Real estate agents, property developers, condominium owners and condominium owners’ association
Estate Agent
Attorney Fürstenow supports real estate agents in legal matters important to their activities. For real estate agents who are in contractual contact with their customers exclusively via means of distance communication, such as the Internet, it is crucial that they inform the customer, if they are consumers, of his right of withdrawal. Otherwise, there is a risk for the broker that the customer will not have to pay the brokerage fee, which is often in the 5-digit range, if the revocation is effective.
Real estate agents and property developer regulations (MaBV)
This law serves to protect the client from rogue traders by imposing special book-keeping and information obligations and by providing security in the event of the receipt of assets.
Condominium owners and condominium owners’ associations
Attorney Fürstenow advises and represents both condominium owners, e.g. against the charges of other condominium owners or against the condominium owners’ association as well as condominium owners’ associations, e.g. against property developers.
Services Relating to Real Estate Law
Attorney Fürstenow offers sellers and buyers of real estate (land and residential properties) the examination of draft purchase agreements, advice and support during contract negotiations and, if required, accompanies them to the notary appointments. If the loan is financed by a bank, Attorney Fürstenow checks the loan agreement in coordination with the real estate purchase agreement, and advises and represents his clients in contract negotiations with the financing bank.
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