What is in a property purchase contract in Austria?

Key points

• In Austria, purchase contracts for property are drawn up by notaries and lawyers; only a notary can certify signatures.
• Mandatory content: parties, property, price, handover date, warranties, release of encumbrances, Aufsandungserklärung, allocation of costs, withdrawal rights.
• Payment practically always runs through an escrow account; the seller is paid only once the entry is secured.
• Costs: transfer tax 3.5%, registration fee 1.1%, contract drafting at a freely agreed fee (RATG tariff for lawyers, notarial tariff for notaries) – in our calculations we assume 1.5% plus VAT.
• For a new build from a developer, the Developer Contracts Act (BTVG) sets fixed payment plans – at most 15% at the start of construction (plan A), or 10% at the start and 30% after shell and roof (plan B).
• Typical mistakes: verbal side agreements, no release of encumbrances, paying outside the escrow account.

Who draws up the contract?

In Austria both notaries and lawyers may draw up property purchase contracts; the buyer can generally choose. Often a lawyer drafts the contract and a notary certifies the signatures – only a notary can do that. Both professions can act as escrow agents: notaries record escrows in their own register, lawyers in the escrow book of their bar association.

What is a property purchase contract?

A property purchase contract is the written agreement in which the seller undertakes to transfer ownership of a property to the buyer and the buyer undertakes to pay the agreed price. The contract itself does not yet transfer ownership – that requires the entry in the land register, for which the contract provides the documentary basis (see Land register entry: time and costs).

Mandatory content

The Aufsandungserklärung deserves particular attention: without it the land register court cannot approve the entry, even if the price has been paid. It is the seller's express, certified declaration consenting to the registration of the buyer's ownership.

New builds: the Developer Contracts Act

If you buy from a developer before completion, the Developer Contracts Act (BTVG) also applies – mandatory law that cannot be varied to the buyer's disadvantage (§ 1(2) BTVG). It provides three security models: contractual security (§ 8), security in the land register with a payment plan (§§ 9–10) and mortgage security (§ 11). In the common payment-plan model, the maximums are:

• Plan A: 15% at the start of construction based on a final building permit.
• Plan B: 10% at the start of construction and a further 30% after completion of shell and roof.

These percentages are upper limits; the Supreme Court objected to a plan with 25% at the start of construction (6 Ob 173/18m). With security in the land register, an escrow agent checks the contractual and land-register conditions and follows the progress of construction. More on buying new builds: New builds in Vienna.

Costs of the purchase contract

All purchase costs with a worked example are in Additional costs when buying property.

Typical mistakes in the contract

• Verbal side agreements (e.g. about furniture or defects) not included in the written contract – hard to enforce in a dispute.
• Missing or unclear release of encumbrances – risk that an old mortgage remains.
• Paying the seller directly instead of via escrow – no protection if the entry fails.
• No priority notice, although time passes between contract and entry.
• For new builds: a payment plan above the statutory BTVG limits.

More mistakes and how to avoid them: Mistakes when buying property.