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What is a real estate transaction?

You often read about the fact that real estate is being sold. Thus, a real estate transaction is an act between at least two actors in which a property becomes part of a contract. The most common types of real estate transactions are buying/selling. The buyer usually pays the seller a certain amount of money. Real estate transactions are therefore financial transactions. Certain other types of financial events may also be considered real estate transactions for tax purposes.

Typically, in a real estate transaction, the buyer of a property transfers money to the seller in exchange for the title. However, payment can be made in different ways. One option is an instant cash payment, where the full purchase price is paid from the buyer’s bank account. But buyers can also take out a mortgage (loan), in which the acquired property usually serves as security for the debt of the payments to be made. An owner-funded transaction also comes into play every now and then, in which the seller agrees to give the buyer a loan to purchase the property. The sale of high-rise projects is often concluded as a so-called “forward deal“.

For tax reasons, real estate transactions can take various forms and it is important to declare such transactions accurately and in detail. Often, property-related companies are used in a real estate transaction that are wholly or partially owner of a property. In the case of a large real estate transaction, each side usually has its own mandate: the real estate buyer engages a team of consultants and the real estate seller also.

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Real Estate Law Firms

There are a number of lawyers and tax advisors who advise on real estate law in Frankfurt and Germany. These consultants are also used by property developers, pension insurance companies, and the public sector. Large companies now and then also sell entire portfolios of real estate in bundles. The field of activity of these real estate transaction advisors is very broad and can include:

  • Definition and selection of a suitable transaction strategy
  • Definition and structuring of a results-oriented transaction process
  • Presentation of the relevant value drivers as well as transaction documents and presentations for management
  • Carrying out a due diligence
  • Implementation of bidding and sales processes
  • Analysis of all information that is relevant to the property and / or relevant to society
  • Structuring the transaction from a tax perspective
  • Addressing potential interested parties via national or international networks
  • Project support and monitoring of the transaction objectives

Well-Known Advisor for Real Estate Transactions in Frankfurt

There is one of the densest networks of law firms in Germany that advise clients on real estate transactions. When selling or developing a high-rise project, teams of specialists such as lawyers, tax consultants and real estate consultants are usually used. These experts either sit directly in Frankfurt or advise from other large cities, such as Munich or Hamburg.

Legal Advice:

  • Baker McKenzie
  • bhp Bögner Hensel & Partner
  • Freshfield Bruckhaus Deringer
  • GSK Stockmann
  • Greenberg Traurig Germany LLP
  • Hengeler Mueller
  • Kucera Law Firm
  • Mayer Brown LLP
  • Noerr
  • REIUS Rechtsanwälte Partnerschaft mbB
  • SNP Schlawien
  • Taylor Wessing
  • Wagensonner

Tax Advice:

  • Deloitte
  • Hansa Partner Rommel & Meyer
  • HauckSchuchardt
  • Jebens Mensching PartG mbB
  • EY (Ernst & Young)

Real Estate Advice:

  • BNP Paribas Real Estate
  • CBRE
  • Drees & Sommer SE
  • JLL (Jones Lang LaSalle)

SKYLINE ATLAS regularly reports on real estate transactions in SKYLINE MAGAZINE. If you don’t have the time to get information there, you can alternatively be informed about transactions in the high-rise area via the SKYLINE NEWS by email.

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