What Legal Steps Are Required to Manage Real Estate in Germany?

Managing inherited real estate in Germany involves a series of legal steps to ensure that the property is handled properly and in accordance with German laws. These steps will help you secure ownership, manage obligations, and honor the wishes of your deceased partner.

 
1. Obtain a Grant of Inheritance (Erbschein)
The Erbschein, or certificate of inheritance, is a crucial legal document that establishes your right to inherit property.

Why It’s Necessary: The Erbschein proves your status as the legal heir to banks, land registries, and other institutions.
How to Obtain It:File an application with the Nachlassgericht (probate court).
Provide documents such as the death certificate, will (if available), and proof of your relationship to the deceased.
Be prepared for additional steps if the will is contested.
 
2. Update Ownership in the Land Registry (Grundbuch)
Once you’ve secured the Erbschein, you need to register the inherited property in your name in the Grundbuch.

Process:Submit a notarized request to the local land registry office.
Provide the Erbschein, proof of identity, and other required documents.
Costs: The transfer of ownership incurs administrative fees, typically based on the property’s value.
 
3. Settle Outstanding Obligations
Inherited properties may come with financial obligations, such as:

Mortgages: If the property has an outstanding loan, you must decide whether to repay or refinance it.
Taxes: Pay any outstanding property taxes or inheritance taxes.
Utility Bills: Ensure all utility accounts (electricity, water, heating) are up to date.
Insurance: Confirm that the property is adequately insured against damage or liability.
 
4. Evaluate Property Usage Options
Decide how you intend to use the property, as this will influence the next steps.

Retain Ownership:Consider whether to live in or rent out the property.
If renting, comply with Germany’s strict tenant laws, including respecting existing lease agreements.
Sell the Property:Engage a real estate agent and arrange for property valuation.
Ensure that all debts and encumbrances are resolved before selling.
 
5. Address Inheritance Tax (Erbschaftsteuer)
In Germany, inherited real estate may be subject to inheritance tax:

Tax Thresholds: Tax-free allowances depend on your relationship to the deceased. For example, spouses are entitled to higher allowances than non-relatives.
Tax Filing: Work with a tax advisor to file the necessary paperwork and calculate any owed taxes.
 
6. Resolve Disputes or Conflicts
If other heirs or family members contest the inheritance or the management of the property:

Mediation: Attempt to resolve disputes amicably through dialogue or mediation.
Legal Action: Consult a lawyer specializing in inheritance law to protect your rights.
 
7. Hire Professionals for Complex Situations
Some scenarios may require professional assistance:

Notary: To handle ownership transfers and documentation.
Lawyer: For legal advice, particularly if there are disputes or unclear ownership rights.
Real Estate Agent: To facilitate property valuation, rental, or sale.
Property Manager: To oversee rental properties if you are not living in Germany.
 
8. Manage International Transfers
If you plan to transfer property proceeds or manage it from abroad, additional steps may apply:

Banking: Ensure compliance with both German and Thai financial regulations when transferring funds.
Legal Representation: Assign a legal representative in Germany to handle ongoing property management tasks.
 
By completing these steps, you can ensure the real estate is managed in compliance with German law while honoring your partner’s final wishes. Whether retaining, renting, or selling the property, thorough legal and financial management will protect your rights and the value of the estate.