However, these supposed advantages are only very limited in relation to real estate transactions: in accordance with Article 311b, at para. 1, first sentence, of the BGB, a contract by which a party agrees to transfer or acquire the property of a property, the notarial deed. The purpose of the standard is to inform the contracting parties of the importance of the transaction and to protect them from hasty decisions, which gives a role of alert to the constraint of the form. The aim is also to avoid litigation by giving the parties specialized advice before the conclusion of the transaction, which regularly takes on material importance. A side letter is usually an endorsement to a major debt contract. The content of such an agreement is not constrained, as there is no legally binding content, legally characterizing or even typical of a side letter. In addition to the interest of confidentiality of the parties, the freedom to organize the content is often the main reason for wanting to conclude a side letter. Nor does the law contain explicit formal provisions for debt endorsements. Freedom of principle and the resulting cost advantages (in the absence of a notarial deed, public certification or comparison) may also encourage contracting parties to sign endorsements in addition to a principal contract in a side letter.
More translations in the German-Swedish dictionary. These sentences come from external sources and can sometimes contain errors. bab.la is not responsible for this content. In addition to statements made in the context of a contract to purchase real estate aimed at obtaining a legal consequence, notarial agreements should also be established that describe and materialize the content and extent of the benefits. It can sometimes be difficult to distinguish these agreements from simple explanations. A side letter, which contains only explanations of a land purchase contract, is not subject to the formality of Section 311b of the BGB.