Property sale fraud in Germany: schemes and protection

How do I recognise fraud when selling a property?

Almost every scheme wants something from you before the notary appointment: money, a copy of your ID, land register data or a new bank account. In a genuine sale no money flows between seller and buyer before notarisation; the purchase price is only paid after the notary's written notice that it is due, and only by bank transfer. Anyone who demands advance payment, haste or a changed bank account by email is suspect. Always check changed bank details by phone with the notary, using a number you have looked up yourself.

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flows between seller, buyer and intermediary before notarisation

Since 2023

cash, crypto assets and gold banned for property purchases

5 rules

that should be settled before the first listing goes online

The rule that exposes almost every scheme

In a genuine property sale, no money flows between you, the buyer and an intermediary before notarisation. Not from the buyer to you, and not from you to the buyer or anyone supposedly acting for them. The purchase price only becomes due once the notary confirms in writing that the conditions are met, and since 1 April 2023 it may only be paid by bank transfer: not in cash, not in crypto assets, not in gold (§ 16a Money Laundering Act).

Anyone who suggests a payment beforehand, in whichever direction, is not describing a property sale.

What fraudsters are after with sellers

The buyer from afar

An interested party, often supposedly abroad, wants to buy without a viewing and offers to transfer a “deposit” in advance so you reserve the property for them. Shortly afterwards more money has arrived than agreed, allegedly a bank error, and you are asked to send back the difference, preferably to a different account. Weeks later the first payment is reversed. Your refund stays gone.

The data collector

They want a copy of your ID in advance, “for the bank”. A genuine buyer's bank does not need your ID, but a fraudster can use it to fake listings or sign contracts in your name.

The financing confirmation that isn't one

A letter with a bank logo claims a loan approval. What is at risk here is usually not money but time: you turn other interested parties away, and weeks later the appointment falls through.

The forged notary email

Shortly before payment, an email arrives that looks like it comes from the notary's office: the bank details have changed. The buyer's money is then gone. Your claim to the purchase price remains, but the sale grinds to a halt, and whether the buyer can pay a second time is uncertain.

Identity fraud: when a stranger sells your land

It sounds like a crime novel, and it is rare. But it does happen: fraudsters appear at a notary with a forged ID, pose as the owner and sell land that does not belong to them. In a Berlin case, front men sold the debt-free plot of an elderly couple from Hamburg in this way; the conviction has been final since November 2022. The preferred targets are undeveloped or vacant plots without a land charge whose owners live far away or are very old, because no bank asks questions there and nobody sees the viewing.

What surprises many: in this case the buyer does not validly become the owner, even if already entered in the land register, because the real owner never validly conveyed the property. It only becomes dangerous if the buyer sells on. Then a third party who relies on the land register can acquire ownership in good faith (§ 892 BGB). If you notice the entry early, you can quickly have an objection entered in the land register by way of a preliminary injunction (§ 899 BGB). It prevents acquisition in good faith until the register has been corrected.

The protection against it is unspectacular

Keep your address at the land registry up to date. The land registry notifies the registered owner of entries, for example of a priority notice in favour of a buyer you have never seen. In Dresden the Dresden local court (Amtsgericht) is responsible, in the surrounding area the local court there. You hold an inherited plot and live somewhere else yourself? Then check your address there before you need it.

What prospective buyers face

These schemes hit prospective buyers. As a seller you should still know them, because fake listings copy photos and texts from genuine offers. If your exposé turns up in someone else's advert at a bargain price, report it to the portal.

The listing at a dream price

A flat in Striesen far below market price, the “owner” is abroad and demands a deposit into a supposed escrow account before the notary appointment.

The reservation fee

In return for a payment the property will supposedly be held for the interested party. Such a fee in an estate agent's terms and conditions is invalid according to the Federal Court of Justice ruling of 20 April 2023 (I ZR 113/22), and without a notary it does not bind the seller anyway.

What the notary protects and what not

The notary secures the process between signature and transfer of ownership. But the notary only protects what passes across their desk.

Risk	Does the notary protect you?	Why
Wrong owner at the appointment	Partly	The notary checks the ID (§ 10 Notarisation Act). A very good forgery can still get through.
Payment before the buyer is secured	Yes	The purchase price is only paid after the notary's notice that it is due; the priority notice protects the buyer.
Cash, crypto assets, gold	Yes	The notary only applies for the transfer once payment by bank transfer has been proven.
Advance payment, reservation fee, deposit before the appointment	No	The money flows outside the contract.
Forged emails with new bank details	No	The notary cannot stop someone from impersonating them.
ID copies and documents already handed out	No	What was sent before the appointment is out there.

Five rules I give owners

I advise owners in Dresden to set five firm rules before the first listing goes online:

Your receiving account is in the purchase contract

Then there is no reason to exchange bank details by email after the appointment, and any email that tries anyway stands out at once.

Release documents in stages

Every interested party gets the exposé. The land register extract and declaration of division go to those who have viewed and are talking to their bank about financing, because the bank needs them for its assessment. No interested party gets a copy of your ID.

Only call back on numbers you found yourself

A notary's phone number is in the Federal Chamber of Notaries' directory, your bank's is on your card. Numbers from a suspicious email are worthless.

Viewing before a purchase commitment

Anyone who wants to buy a property worth several hundred thousand euros unseen needs a very good explanation.

Haste is a warning sign

Genuine buyers need weeks for financing and the draft contract. Anyone who wants to pay today wants something else.

What to do if it has happened?

If money has been transferred, every hour counts. Ask your bank immediately to recall the transfer and report it to the police; in Saxony this is also possible online via the Saxony Police online station (Onlinewache). If you suspect identity fraud at the land register, inform the land registry and the notary named in the entry notification. If your ID data has been misused, report it to the authority that issued the ID as well.

The estate agent's role

Under the Money Laundering Act, estate agents must identify the parties to the contract as soon as both have a serious interest in the purchase (§ 11 (2) GwG). A buyer who will not show their ID therefore stands out early. In everyday practice something else matters more: interested parties do not get direct access to your documents and bank details, but go through a contact person who knows which request is normal and which is not.

Where the notary appointment fits into the process and what is checked there is covered in the guide to notarisation when selling a property.

Suspicious enquiry about your property? Let me take a look

If you are selling in Dresden or the surrounding area and have a bad feeling about an interested party, I will go through the enquiry with you. Reachable by phone Mon to Fri 8am to 8pm, Sat 9am to 2pm.

Get in touch

Owner & Property Adviser

Calvin Linke

Dresden local expert — with many years of experience supporting property acquisitions and brokerage in the Elbe valley.

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Can someone sell my land without me noticing?

It is rare, but it happens: fraudsters appear at a notary with a forged ID and pose as the owner. Undeveloped or vacant plots without a land charge whose owners live far away are most at risk. The buyer does not validly become the owner, but correcting the register takes time, and if the buyer sells on, a third party acting in good faith can acquire ownership. An effective protection is an up-to-date address at the land registry, because the registry notifies the registered owner of entries.

May an estate agent demand a reservation fee before the notary appointment?

As a seller you never pay a reservation fee. If, conversely, an agent demands a reservation fee from the buyer through their terms and conditions, that clause is invalid according to the Federal Court of Justice ruling of 20 April 2023 (I ZR 113/22). A reservation that is really meant to bind the seller needs notarial form anyway.

What do I do if I receive an email from the notary with changed bank details?

Do not transfer anything. Call the notary's office on the number you find yourself in the Federal Chamber of Notaries' directory, not on the number in the email. Reputable notaries do not casually change bank details by email. If money is already on its way, ask your own bank to recall it immediately and report it to the police.

Do I have to send prospective buyers my ID or the land register extract?

Your ID never, the land register extract only late. Only the notary at the appointment and your estate agent check your ID. The buyer's bank needs the land register extract for the financing, so only after the viewing, once a concrete loan application is under way. Before that, the exposé is enough.

Fraud when selling property: how to spot the schemes and protect your money and land register entry