How to secure a buyer before going to the notary

Why handshake deals collapse — the statistics

Between a buyer saying "yes" and the notary appointment lies a gap of four to eight weeks. In that time, the average German property deal has a 12–18% chance of collapsing — most often because the buyer's financing falls through, an unexpected inspection finding changes their calculus, or a competing property emerges that better suits their situation.

A handshake deal — or even a written letter of intent — does not legally bind either party in Germany. Only the notarial Kaufvertrag creates a binding obligation. Everything before that point is, from a legal perspective, exploratory. Sellers who treat an accepted offer as a done deal, and stop responding to other interested buyers, are taking a risk that professional agents routinely protect against.

The mechanisms below are designed to make the gap between "yes" and "notary" financially consequential for the buyer — which is the only reliable way to prevent a deal from falling apart.

The Letter of Intent (Kaufabsichtserklärung): what it is and isn't

A Kaufabsichtserklärung is a written expression of a buyer's intention to purchase. It typically records:

• The agreed price
• The proposed closing date
• Any conditions (usually: subject to satisfactory financing confirmation within X days)
• The parties' names and addresses

What it is: Evidence of a serious, specific intention. In a dispute, it demonstrates that both parties had agreed on terms and the buyer then withdrew — which is relevant if the seller subsequently sold to a different buyer at a lower price and is claiming damages.

What it isn't: A legally binding contract. Either party can walk away without penalty unless a penalty clause (Vertragsstrafe) has been explicitly agreed and included.