Checklist for buying a house/flat in Austria

What should you consider when buying a house or apartment?

We have summarised the most important points that can help you with your property purchase:

Compare property prices

Since the beginning of 2015, Statistics Austria has been obliged to publish an official property price index on a quarterly basis, which makes it much easier to compare purchase prices. Prices vary greatly in Austria: property is more expensive in the west than in the east. In the individual federal states, the price largely depends on whether the property is located in the city or in the countryside and in a tourist region. In general, don't be too specific about location and property type, otherwise you could be in for a very long search. Before buying a property, consider whether it should necessarily be a new build with a garden.

Set yourself a clear limit for financing that you will not exceed under any circumstances. You should always keep an eye on your equity and the amount of loan you can afford in order to avoid bidding blindly and unreasonably on a property that ends up exceeding your budget.
If you have found an attractive offer, you need to be able to raise the purchase price in a binding manner in order to be able to assert yourself against other interested parties.

When searching for your property, you should always keep your eyes and ears open. The following channels will help you:

Property portals: Post your search on several portals
Estate agents: One of the safest and most convenient ways, but also expensive.
Newspapers and classified adverts: The older generation in particular uses property listings in the traditional way in newspaper adverts. Regional classified adverts can also be very effective when looking for a house.
Social networks: Post your advert on Facebook, for example.
Banks and property developers: Local banks and property developers often have a property portfolio that is worth looking at.
Personal radius: Don't underestimate the reach of your own contacts. Many properties do not appear on the market, but are passed on within the circle of family or acquaintances.
Building authorities and municipalities: Here you can make non-binding enquiries about vacancies, available plots and building areas and, if necessary, be placed on a waiting list.

Arrange a viewing appointment

If you have found a property that arouses your interest and meets your wishes and expectations, make an appointment with the estate agent to view the property. If you like the property, inform the estate agent after the appointment that you intend to buy it and you may also be able to obtain a time-limited reservation.

Purchase offer

You then make the purchase offer, which is a binding offer from you as the buyer to purchase the property. It could also be that the seller receives purchase offers from several interested parties and finally selects the most suitable buyer. The purchase offer is then sent to a notary, who then draws up the purchase contract. If you, as the buyer, wish to or have to withdraw from a purchase offer after it has been signed (e.g. because it turns out that the bank will not provide a loan in the required amount after all), the seller is generally entitled to claim damages.

Inspection before concluding the purchase contract

Before concluding the purchase contract, you should inspect the house or condominium again more closely. Pay attention to any visible damage and whether this has been removed by the previous owner. The meter readings for water and electricity should be noted and it is also very useful to take sufficient photos of the current condition of the property and to document the fixtures and fittings to be taken over. We recommend carrying out a second inspection before submitting the purchase offer, as you are already entering into a legal obligation.

Purchase contract

After submitting your purchase offer, a notary or trustee will be commissioned to draft the purchase contract. The notary will then explain the details of the purchase contract to both parties. In some cases, the seller will insist that you as the buyer provide them with a financing confirmation or proof of capital when signing the purchase contract. As soon as the notarised contract has been signed, the escrow process begins.

Payment

As a rule, the notary will send the request for payment two to eight weeks after the purchase contract has been signed. In the case of property financing via a loan, the entire purchase price is transferred from the bank to the notary once the loan has been approved. The purchase price is now paid to the seller by the notary. The notary must then also be paid. In order to register ownership of the property in the land register, the property transfer tax must be paid. This amounts to 3.5 per cent of the total purchase price. Only when you as the buyer have paid the land transfer tax will you receive the necessary clearance certificate from the tax office. Without this, you will not be entered in the land register as the owner. In addition to the land transfer tax, there are other additional costs.

Land register entry

The property can only be registered once both parties have signed the purchase agreement in writing and it has been notarised or certified by a court. If the application is granted, you are now the legal owner of the property.

Check the land register again to ensure that all encumbrances have been cancelled by the previous owner. Residential rights and pre-emptive rights remain in place despite the change of ownership.

Handing over the keys

When the keys are handed over, the house or condominium is checked again in more detail. You must pay attention to any visible new damage and whether this still needs to be removed by the previous owner. The meter readings for water and electricity should be noted and, like the fixtures and fittings to be taken over, also documented as part of a handover protocol.

^Sources:

^{https://www.immobilienscout24.at/wissen/finanzierung/checkliste-hauskauf.html}
^{https://www.infina.at/ratgeber/hauskauf/}

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