General questions about the house purchase contract

Hello everyone,

I am completely new here. My wife and I intend to build a house. The bank also wants to approve the financing. We are bringing nearly 40% equity.

Maybe someone can help me. The bank would like to see the draft lease agreement because the land is church land and is leased. Of course, we have one from the church, which is already signed but only comes into effect subject to financing approval. According to the bank and the church, it must also be drawn up by a notary. It would be similar with the contract for the work or purchase of the house.

My question: Will the notary ultimately take over both the purchase contract and the lease agreement as we have already concluded them, and can I submit the documents I already have (draft lease and purchase contracts) to the bank, or do I first have to go to the notary and have a draft prepared there? It would be easier for me to submit the draft to the bank and have it notarized later. The signatures and stamps are already on it.

Greetings from Brühl Uwe

Leasehold land? Notary, of course. It's like buying land. House contract notary? No, definitely not. It is concluded like any other purchase or work contract without a notary. The bank wants to see: Does he have land? And what does the house cost? Then it will surely say yes with 40% equity. Even with leasehold. They usually don't like that because it doesn't work so well in foreclosure. Karsten

The draft will be necessary because in leasehold contracts the loan-to-value ratio of the state is regularly limited (e.g. to 80%). For the bank, of course, a vital piece of information, but suitable with 40% equity.

Which purchase contract are you talking about? If the bank wants the lease agreements, they will get them. Also the contract for the construction of the house. In the case of hereditary leasehold, the church's waiver declaration is added. They only want the wording that is drafted in the contract. Regards, Yvonne

So first of all, of course, a huge thank you for your quick and great answers. I am talking about both contracts. The one for the house and the leasehold agreement for the leasehold right. In the meantime, I have also obtained information from my notary. So it looks like the notary takes our contract and creates his own from it. Of course with the contents from the contract.