Elizabeth Bagwell,  Saturday, 25 January 2014

 

This article is part of a series of 8 articles about buying property in Austria. The other articles in the series cover the following topics:

Property Buying Guide
Property Taxes
Costs
Mortgages
Finding an estate agent
Buying Process
Where to buy?

Buying a property in Austria takes several steps, and each one requires you to present your credentials to a new group of people. This article provides an overview of the documents required for each of the key steps in the property purchase process, including:

Agreement to buy the property
Arranging a mortgage
Transfer of the property
Registration and taxes
Selling a property

If you are an international buyer (EU or non-EU) or a resident in Austria but not a citizen, you can expect to have to prove your identity and your residency status at every stage. Expect to bring your passport and your visa (if applicable) to every meeting, and it's a good idea to have photocopies of all documents.

Agreement to buy the property

A price is usually agreed through the estate agent acting for the seller. This is then agreed in writing. The contract should be signed in the presence of a notary or lawyer. At this point, a deposit will usually be required. This is typically 10%. You should therefore expect to bring to the meeting (or have provided beforehand):

Identification
Evidence of financing or ability to pay (e.g. a mortgage in principle)
Deposit documentation

Arranging a mortgage

When arranging a mortgage, you can expect to provide detailed information about your financial circumstances and the property in question. This must be backed up with appropriate documentation. At a minimum, expect to provide the following personal documents for each buyer:

Identification
Visa (if applicable)
Proof of income / salary
Tax return
Document indicating you do not have criminal convictions or have defaulted on debts

You will also have to provide details of the property, including:

Extract from the Austrian land registry
Property description, such as floor plan and photo
Insurance certificate
Negotiated price (if applicable)
Plans and planning permission for any extensions or renovations
Extract from land registry

Other details about the property may also be required. These will normally be obtained from the seller or the seller's agent. You may also have to provide access or information to allow the mortgage provider to conduct a valuation survey of the property.

Transfer of the property

The contract of sale transfers ownership of the property and should be drawn up by a lawyer or notary. It must be signed in the presence of a notary or a court official. At this stage, everything should have already been discussed and arranged so there should be no surprises or sudden requests for information on either side. You should expect to provide:

Identification
Documentation regarding the transfer of funds

If you require a mortgage, you will have to have arranged it ahead of time. The mortgage company may transfer the funds to you, to transfer to the seller or may do so directly. If you use a notary, they may act as an escrow.

Registration and taxes Each property must be registered at the land registry office. The responsibility for carrying this out is held by the new owner, i.e. the buyer. Property transfer taxes must also be paid, and this is also the duty of the buyer. In both cases, the government agency involved will be looking for documentation regarding:

Buyer's ID
Seller's ID
Sale contract (including sale price)
Mortgage agreement (NB: this must also be registered separately)

In some cases, the notary will undertake to register the property for you, for a fee. Either a notary or an estate agent should be able to talk you through the process.

Selling a property

When selling a property it's important to have the documentation relating to the property to hand. This includes not only the documentation required to complete the transaction, such as the title, but also the documentation required by the new owner. Typically, you should expect to hand over at least the following:

Information regarding utilities
A warranty for any work done (e.g. renovations)
Insurance certificate (insurance is legally required in Austria)
Fire and gas safety information, where applicable

The estate agent may request information early on, such as energy efficiency or renovation information. At this stage, copies of the documents should suffice but you should expect to hand over the originals to the buyer when you make the final sale arrangements. The official witnessing the signing will also demand proof that you own the property free and clear. This typically means:

Your contract of sale
Your mortgage agreement (if any)
Your property tax certificates