Mag. Balazs Esztegar LL.M.
Attorney-at-law Vienna

Piaristengasse 41/10
1080 Vienna, Austria
Tel. +43 1 997 4102
Fax +43 1 997 4102-99

Purchase Agreement

In the case of the purchase of a real property one should be sure of a thing: that who is saving money in connection with a purchase agreement will save money perhaps at the wrong place. Good preparations and structured arrangement are just upon the purchase of a real property indispensable components for the smooth implementation in the interest of all participants. It is depending on the nature of the matter itself and thus on the scheme of Treuhandschaft (Escrow Agency) that the purchase of a real property is not completed by the contract itself, since such scheme should secure  maximum safety for both purchaser and seller.

The purchase agreement shall regulate all rights and obligations of the seller and purchaser of a real property. Recording of the ownership title in the real property register requires a written agreement. The respective signatures of the parties must be authenticated.

The escrow agency provided for real property purchase agreements on a regular basis serves the protection of both sides: seller shall be safe that the purchaser will pay the purchase price still prior to the entry of his ownership title in the real property register, while the purchaser can be sure that the seller will receive the purchase price first when the purchaser will have been entered in the real property register. Accordingly, the person drafting the contract and acting as escrow agent shall be bound by the escrow assignments laid down in the purchase agreement or in a separate escrow agreement.

The fees and dues to incur upon the purchase of a real property must be partially calculated, taken over and forwarded similarly by the person drafting the agreement. Here it is first of all about the land acquisition tax, the real property yield tax and the registration duty for entry in the real property register.

The party participating in a property purchase who, however, has not himself or herself entrusted the person drafting the contract should nevertheless avail himself or herself of legal advice and have the purchase agreement auditedThe Esztegar Law Office offers – in line with the drafting of contracts and processing of real property purchase agreements – also consultation in real property law and carries out readily the audit of the agreement.