200K real estate purchase with 80% equity (unexpected inflow)

Hello. The purchase contract for a property can only be concluded by the notary once the bank has given its offer for the loan (Finanzierungszusage).

What happens if suddenly money comes in – that is, equity. Instead of financing €120,000, only €40,000 need to be financed. Does one then have to go through the entire offer process again? Do the banks comply with this or do they refuse because they want to avoid the additional effort of making a new offer? One usually requests offers from several banks through a financial advisor or a bank directly.

I would leave everything as it is and keep the windfall as a buffer during the construction period. After the construction, it may be easier to pay the installment with the rest and, for example, bridge a parental leave.

Hello. The purchase contract for a property can only be concluded by the notary after the bank has made its offer for the loan (financing commitment).

What happens if suddenly money is added - that is equity. Instead of financing €120,000, only €40,000 needs to be financed. Does one have to go through the entire offer process again? Do the banks agree to this, or do they refuse because they want to avoid the effort of making another offer? One usually approaches several banks through a financial advisor or a bank directly.

Interesting. Our notary did not ask during the land purchase whether we were paying like that or through financing. Theoretically, that is not his responsibility, but theirs.

The purchase contract for a property can only be concluded by the notary once the bank has given its offer for the loan (financing commitment).

No. The purchase contract is signed when the seller and buyer agree and the notary has prepared a draft. The bank has nothing to do with it. If you are sure that the financing will work, then there is absolutely nothing against signing the purchase contract.

As others have already written, the notary does not care how the property is financed or whether there is a loan agreement. He only has to report suspicion of black money or money laundering. If after the purchase and signing of the loan agreement there is a windfall, you can take advantage of the permitted special repayments. There is no entitlement to a larger repayment against a prepayment penalty.

I thank all respondents!

If after the purchase and signing of the loan agreement there is a windfall, you can take advantage of the allowed special repayments. There is no entitlement to a larger repayment against a prepayment penalty.

You probably meant there is no entitlement to repayment WITHOUT a prepayment penalty.