Sub-securitization
In the case of sub-securitization (also known as black notarization), a purchase price is entered in the notarial purchase contract (property and real estate purchase) that is significantly lower than the actually agreed purchase price.
In this way, the contracting parties try to save fees ( notary fees, land registry fees ) and taxes ( property transfer tax and, if applicable, income tax ).
Payment for the object of purchase is usually made " on the fly " before or after the purchase. The most common payment method is cash .
consequences
The notarized contract is void as a sham transaction according to § 117 BGB . The contract for the actual purchase price is void due to a lack of form in accordance with Section 311b, Paragraph 1, Clause 1, Section 125 of the German Civil Code. If there are any problems with the execution of the contract and if this fails to cure the form deficiency by relinquishing and entering it in the land register (cf. § 311b Paragraph 1 Clause 2 BGB), the contract will be reversed. Payments already made can be lost for the buyer.
If a sub-securitization is determined by the authorities - for example the tax office - this may lead to subsequent payment of the evaded taxes and to criminal proceedings for tax evasion . Additional risk: If the payment, which is to be made 'under the palm of the hand', is agreed before the appointment, the seller may suddenly lose interest in the sale. It is then difficult, if not impossible, for the buyer to reclaim the payment made. In the opposite case, the buyer should pay the difference after the notarization. In this case, the seller lacks an enforceable claim. If the buyer refuses to pay, the seller can hardly defend himself.
