Additional property acquisition costs or transaction costs are costs incurred when acquiring a property in addition to the purchase price for the building and the land. Together with the purchase price, they make up the property acquisition costs.1 In Germany the buyer usually pays all property acquisition costs.2
In particular, additional property acquisition costs include:
In addition to these costs, transaction costs also include the costs of a necessary land survey, legal fees, valuation costs and search costs for the selection of a suitable property. By contrast, development charges and the costs of ground investigations are not counted as additional property acquisition costs.3
Depending on the property and location, the additional property acquisition costs can account for up to 15% of the purchase price of a property. For this reason they are highly important to a property’s profitability.