We are sure that before taking such a serious step as buying property in Europe, a client wants to get acquainted with the stages of this process. That is why we are going to tell you about all the details of buying property in Austria.
- Finding a real estate agent
The process of buying property in Austria starts with finding a real estate agent. The following information will focus on the process of working with the VigoImmobilien team.
- Providing detailed information about the desired property
In the first stages, the client provides VigoImmobilien with detailed information about the desired property. This information includes:
- client’s contact details;
- type of property (apartment/house/commercial property);
- the purpose of the property purchase;
- area and location of the property;
- the client’s budget;
- whether the client plans to take a loan from a bank;
- whether the client needs assistance in confirming the origin of funds;
- other details about the property.
- Signing a brokerage agreement
If the real estate agent agrees to work on the client’s request, they sign a brokerage agreement (Maklervertrag). Based on this agreement, the real estate agent undertakes to assist the potential buyer of the property in finding the most suitable property, and the potential buyer undertakes to pay a commission if the real estate agent successfully concludes a real estate purchase agreement with the seller proposed by the real estate agent. Typically, the agent’s commission is 3% of the value of the property. Sometimes real estate may be sold without a commission for the buyer. In this case, the real estate agent receives a commission from the seller.
To conclude an agreement, the client provides all the necessary information about himself or herself (name, address, date of birth, information on citizenship, contact telephone number and e-mail).
- Viewing the property
Once several properties have been selected, VigoImmobilien employees organise a viewing of each property. In this case, the company agrees on the time of the viewing and also supports the entire process of negotiations with the client regarding the property of interest.
- Kaufanbot
If the client chooses one of the offered properties and wishes to purchase it, the VigoImmobilien team will help you to draw up a document confirming the intention to purchase (Kaufanbot). This document contains:
- description of the property;
- price agreed between both parties;
- list of additional costs (Kostenaufstellung), including VAT and additional expenses.
After signing the Kaufanbot, the property is reserved for the client and removed from the market. This document is executed in the presence of a lawyer/notary.
- Permit to purchase real estate by foreign citizens
Obtaining a permit for the purchase of real estate by foreign nationals in Austria is an optional step. Citizens of EU or EEA countries have the same rights to purchase real estate as Austrian citizens and do not need to obtain such a permit. However, third-country nationals (including Ukraine) are required to obtain an official permit to purchase real estate in Austria.
The procedure for obtaining such a permit may differ depending on the federal state. As a general rule, the client submits a package of documents to the responsible state authority (application for the permit; copy of the contract or draft contract of sale; declaration of use of the property; plot plan; current extract from the land register; passport) and pays the official permit fee.
- Advance payment
Austrian legislation does not explicitly require a deposit, but in practice, property owners may require a 10% deposit (especially foreigners). The deposit is made in the form of an escrow deposit and kept in a bank account until the transaction is completed.
- Signing the sale and purchase agreement
At the next step, a lawyer or notary prepares the agreement in accordance with the terms agreed between the seller and the buyer. The sale and purchase agreement contains personal data of both parties to the transaction, a description of the property with the purchase price and all related costs.
- Payment of the full price of the property
After signing the purchase and sale agreement, a special purpose account is opened with a bank to pay for the property. The entire amount must be transferred in one payment. The account must be opened with an Austrian or EU bank. Opening a bank account can take some time and effort, so this task is best done in the early stages of the property purchase.
Sometimes, the purchase price of the property, as well as all related payments or so-called additional costs (discussed below), are transferred to a special account of the lawyer, who then transfers the funds to the seller and other recipients of the funds.
- Additional costs
In addition to the full cost of the property, you must pay for:
- lawyer and notary fees;
- official fees for obtaining a permit to purchase real estate (for third country nationals);
- real estate transfer tax (Grunderwerbsteuer);
- land registry fee;
- real estate agent’s commission.
As a rule, the amount of additional costs is about 10% of the value of the property.
- Payment of the real estate agent’s commission
After entering into the sale and purchase agreement and transferring ownership of the property, the buyer pays a commission to the real estate agency in the amount stipulated in the brokerage agreement.
If you have any questions or would like to cooperate with VigoImmobilien, we will be happy to receive your inquiry at [email protected].
