The most common source of property advertisements in Luxembourg are newspapers, online property portals and estate agents. ‘For sale’ signs are rarely displayed in windows and gardens. After you have found a property, made an offer and the seller has accepted it, here is the process to follow.
Sales agreement
The first step is to secure a sales agreement (compromise de vente/vertrag). This is not mandatory but is advisable as it protects both parties from the other withdrawing from the sale.
The agreement contains the names and addresses of both parties, the details of the property, the sale price and the terms and conditions of payment. It will also contain a penalty clause: a clause that means if someone breaks the agreement (e.g. withdraws from the sale) they have to pay the other party a set amount of money. This amount is usually 10% of the sale price.
Registration
To make it legally enforceable, the signed sales agreement should be registered with the Administration of Registration within 3 months.
Funding: mortgages and loans
After the sales agreement has been signed and registered, you can secure funding for your purchase. Most banks in Luxembourg offer mortgages. Deposits are typically around 25% of the property price. You will need to research and compare mortgage deals to find the best one for you.
As well as mortgages, there are also a few loans and grants designed to help you purchase property. Your eligibility depends on your personal circumstances, such as your income and residency status. Luxembourg’s Housing Assistance Department can offer you advice, let you know what you are eligible for and help you apply.
Transfer of ownership
By law, a notary has to oversee the final stages of the purchasing process. They will ensure all legal requirements have been fulfilled for the purchase to go ahead and draw up a notarial deed which outlines the sale and transfers ownership of the property to the buyer. The deed has to be signed by both parties in front of the notary. The notary will also oversee the payment transfer.
After this, the property official belongs to the buyer, but the actually handover (e.g. seller moving out, exchange of keys and buyer moving in) can take 6 to 8 weeks.
Registration
As the new owner of the property, the buyer needs to register the property with the local authorities. The notarial deeds or utility bills can be provided as proof.