Deposit to seller - pay or withhold?

We have the appointment with the notary at the end of November, and the contract that we have for review includes a down payment to the seller of the house that is yet to be defined.

That is basically okay with me, although I think it is an "advantage" for the buyer. With the signed notary contract, the matter is legally binding for both parties, and we could also pay the full price only when the house is handed over.

The buyer is thinking of a down payment of 10%, which would be just under 35,000 euros. We hear warning voices from the surrounding environment that this is quite a lot of money and that we will not really "receive" the house for another 8 months, and much can happen until then.

How do you see it? Is this common? Would you pay that or rather not? Everything is still open for negotiation...

I am also a layperson, but I would also be reluctant to do that. To my knowledge, it is not common either. Perhaps you could negotiate the purchase price down a bit in return. You are paying interest on 35,000 EUR for 8 months, so at least that could be argued, even if you can pay from equity. For your protection: Will a priority notice of conveyance [Auflassungsvormerkung] be registered? Was the down payment made to a notary escrow account or directly to the seller? If you already need a loan for the down payment, can you already have a land charge registered?

Unusual and the notary should warn you against signing something like this. Payment only after release by the notary.

Notary escrow accounts are uncommon nowadays and must be justified by the notary. These days they are very reluctant to do so.

Payments as well as the handover date can be individually adjusted. Everyone, whether buyer or seller, has different ideas or interests regarding the terms, usually it is the interests of the seller that are rather written into a contract, but it can also be that the buyer defines requirements (I only buy if ...)

The important thing is that you agree (talking to each other helps immensely) and that this is documented in the purchase contract. In a house purchase/sale, both should feel equal and comfortable.

If something does not fit, it should be addressed beforehand.

I myself have sold a house. The buyer wanted to pay in two separate installments - I believe with one month in between. It didn’t matter to me, I had no disadvantages from it, the buyer had an advantage for himself (don’t ask me which), and so two installments were fixed in the contract.

Regards

I had no disadvantages because of that

The question is when the installments are supposed to be paid. If the second installment were due six months after the transfer of ownership, you as the seller would indeed have a disadvantage.

It is common and reasonable that payment and transfer of possession happen very closely together in time. So payment, and the next day you get the keys. A down payment months (!) in advance already hurts.

I would ask: Why does the seller want that? Does he need money (bad) or is he looking for security that nothing goes wrong afterward? If the latter, there are other options. The notary should be able to provide advice.