Luxembourg — Property: Legal Checks

Why this matters

Null

Key facts

• A sales agreement signed by both parties is final and binding from signature, and obliges both to complete the sale at the stated price; signing one is not mandatory.
• A building sale must be formalised in a notarial deed to be enforceable against third parties, and only a notarial deed can be registered at the Mortgage Registry.
• Non-professionals must submit the sales agreement for registration within 3 months of signing; late registration does not affect validity between the parties.
• Registration costs a fixed EUR 12 if the agreement has a suspensive clause (for example a bank loan condition) and 7% of the selling price if not, charged to the person presenting it.
• A loan-condition time limit is typically at least 4 to 6 weeks and can be extended with an official bank letter showing the application is in process.
• A penalty clause is typically 10% of the sale price (EUR 35,000 on a EUR 350,000 price).

Steps

1. Engage a Notary — Hire a notary public to handle the legal aspects of the property transaction.
2. Property Title Verification — The notary will verify the property title and ensure there are no liens or encumbrances.
3. Registration of Property — The notary will also register the property in the public registry, ensuring official recordation.