Who Pays What When You Sell a House – Notary, Land Registry, Estate Agent?

Notary fees, land registration, estate agent commission, property transfer tax: it is often unclear who bears which costs when a house is sold. I make sure the purchase contract sets it out clearly and on a sound legal footing.

A property sale rarely falls apart over the purchase price – the real friction almost always arises over who bears which incidental costs. Notary, land registry, estate agent, tax office: each item follows its own rules, and anyone who simply relies on “that’s just how it’s done” risks trouble shortly before completion, or an unpleasant surprise afterwards.

How I can help you

• Reviewing and negotiating the draft purchase contract, and the cost clauses in particular
• Clarifying who bears the notary, land registry and cancellation costs
• Checking that the estate agent’s commission is valid under § 656c, § 656d BGB
• Clarifying liability for property transfer tax and how it is allocated in the contract
• Representing you where one party fails to pay costs it has agreed to bear

Notary, land registry and tax costs: who pays is a matter for negotiation

The level of notary and land registry costs follows from the Court and Notary Fees Act (Gerichts- und Notarkostengesetz, GNotKG) and is based on the recorded purchase price – the higher the price, the higher the fees. Who ultimately bears these costs as between the parties, however, is not laid down by law; buyer and seller settle that themselves in the purchase contract.

In practice a settled division has developed, which most notaries will propose: the buyer bears the costs of recording the contract, entering the priority notice of conveyance (Auflassungsvormerkung), transferring title, and – where the purchase is financed – creating the land charge (Grundschuld). The seller usually bears the costs of cancelling any mortgages or land charges that are no longer needed (clearing the encumbrances), as this is in the seller’s interest. This is established practice, not a statutory obligation – a different arrangement can be agreed at any time. That is precisely why it pays to look closely at the draft contract before you sign.

The same applies to property transfer tax (Grunderwerbsteuer): under § 13 no. 1 GrEStG, buyer and seller are jointly liable for the tax by law – in theory the tax office could pursue either of them. In practice, though, the buyer almost invariably bears the property transfer tax alone, because the purchase contract provides for it. I make sure this clause is worded unambiguously, so that you as the seller are not, after all, pursued by the tax office should the buyer fail to pay.

Estate agent commission: a 50/50 split has applied since 2020

Since the reform of §§ 656c, 656d BGB at the end of 2020, a clear principle has applied to the sale of flats and single-family homes to consumers: where both sides instruct the same estate agent, buyer and seller may only be charged the commission in equal shares – it is not permissible to load a larger share onto one side alone.

Where only one party has instructed the agent – usually the seller – the other party can only be required to pay if the instructing party bears at least the same share and has actually already paid it; only then does the claim against the other side fall due. This sequence is frequently overlooked in practice – with the result that commission clauses are invalid, or that one party is wrongly pushed into paying first. I review estate agency agreements and the commission clauses in the purchase contract to check whether they hold up against these requirements.

Before you sign the notary’s draft purchase contract, I go through the cost clauses for you: are the notary, land registry and cancellation costs cleanly allocated? Is the property transfer tax clause unambiguous? Does the estate agent’s commission comply with the equal-share rule? Where necessary, I negotiate changes before the notary appointment takes place – afterwards, much of it is difficult to put right. You can find out more about your options around buying, selling and drafting contracts on my topic page Real Estate Law.

Are you planning to sell a house and want to know which costs will actually fall to you? Arrange an initial consultation – the fee for it is based on the RVG or is covered by your legal expenses insurance. Together, we will make sure the purchase contract states clearly, from the outset, who pays what.

This article provides general information and is no substitute for legal advice in an individual case. Last updated: 2026-07-15.

Request an initial consultationWhat will it cost me?08091 617 7777