Definition and Significance of the GNotKG
Das GNotKG (Law on Court and Notary Costs) is the central German legislation that governs the assessment of costs for the activities of courts and notaries in civil, family, voluntary, and criminal jurisdictions as well as for notarial acts. It entered into force on August 1, 2013, replacing the Costs Ordinance (KostO) as well as parts of the Court Costs Act (GKG) and the Notary Costs Act (NotKG). With the GNotKG, a modern, clearly structured, and transparent system of costs for judicial and notarial activities was established.
Legal Scope of Application of the GNotKG
Personal and material scope of application
The GNotKG generally applies to
- ordinary courts of civil, family, and voluntary jurisdiction,
- as well as to notaries, insofar as they perform official acts within the scope of voluntary jurisdiction.
Exemptions include, among others,
- activities within contentious jurisdiction outside of civil law,
- cost regulations under special laws on costs (e.g., GKG for contentious jurisdiction).
Distinction from other laws on costs
The GNotKG is distinct from other national cost regulations, for example:
- Court Costs Act (GKG) – regulates court costs in contentious civil cases,
- Law on Remuneration and Compensation in Justice (JVEG) – concerns remuneration of witnesses, experts, and interpreters,
- Law on Lawyer’s Remuneration (RVG) – deals with remuneration and costs for lawyers.
Structure and Organization of the GNotKG
The GNotKG is divided into several parts:
General Part (§§ 1–89 GNotKG)
The General Part regulates
- the fundamental cost liability,
- the calculation of costs,
- types of costs, and
- liability provisions
Important basic concepts such as the definition of costs (§ 1 GNotKG), the principles of cost collection, and the determination of the value of a matter are stipulated here.
Schedules of Costs (Annexes 1–2 to the GNotKG)
The Schedule of Costs (KV-GNotKG) constitutes an annex to the law. It contains the individual cost items, fees, and disbursements for each official act and court proceeding, organized by type of transaction and value.
Special Part (§§ 90–137 GNotKG)
Here you will find provisions on the collection of advance payments, judicial cost reimbursement, cost recovery, debtor and liability issues, as well as special situations.
Types and Collection of Costs
Fees
The GNotKG distinguishes between fixed fees and value-based fees:
- Fixed fees: Are charged as a flat amount for certain activities, regardless of the value of the transaction.
- Value-based fees: Are calculated based on the value of the transaction, e.g., for real estate purchase agreements, drafting of wills, or applications for certificates of inheritance.
Disbursements
In addition to the actual fees, courts and notaries may claim disbursements, for example for
- postal and telecommunication costs,
- typing or writing expenses,
- travel expenses.
Advance and Partial Payments
Courts and notaries can require advance payments on account of costs; official acts are generally not performed until such advance has been paid.
Significance of the Transaction Value
Der Transaction value forms the basis for the calculation of fees under the GNotKG. It is determined according to specific rules for each notarial or court activity, e.g.:
- Value of the item in cases of purchase or gift contracts,
- net assets in applications for certificates of inheritance,
- market value of real property for entries in the land register.
Sections 36 et seq. GNotKG govern the determination and setting of the transaction value.
Cost Debtors under the GNotKG
Determination of the Cost Debtor
As a rule, the party who applies for or initiates a judicial or notarial act is liable for the costs. Special rules apply to activities in the (joint) interest of several parties.
Joint and Several Liability
Frequently, in notarized contracts (e.g., real estate purchases), both buyer and seller are jointly and severally liable for the costs.
Exemptions and Reductions in Fees
The GNotKG provides for cases of fee reduction and exemption, e.g., for certain authorities, public law bodies, or in cases of low transaction value. The legal basis for this can be found in §§ 10 et seq. GNotKG and the respective schedule of costs.
Relevant Procedural Stages and Disputes
Assessment of Costs
Costs are generally determined by a formal cost notice. The debtor may file an objection under § 127 GNotKG.
Legal Remedies and Cost Decisions
Legal remedies against cost decisions include immediate complaint (in individual cases) or objection. The relevant provisions are found in §§ 128 et seq. GNotKG.
Relation to Other Cost Regulations
The GNotKG is subordinate to other specific laws if such laws contain special cost or fee rules, e.g., in the area of agricultural or family courts.
Legal Development and Reform Objectives
With the entry into force of the GNotKG, the cost law for courts and notariats was
- adapted to conform with European law and made transparent,
- streamlined and systematized,
- adjusted to changes in value and practical requirements.
The reform aimed at simplified calculation of fees and improved legal certainty.
Relevance and Practical Application
The GNotKG is applied in a wide range of official acts, e.g.:
- Notarisations in property and corporate law,
- wills, inheritance contracts, marriage contracts,
- applications in probate proceedings,
- registrations and deletions in the commercial or association register.
Compliance with legal fees and regulations is a central element of constitutional administrative procedures in the area of voluntary jurisdiction and in notarial acts.
References and Legal Sources
- Court and Notary Costs Act (GNotKG), current version, available at the Federal Ministry of Justice.
- Explanatory memorandum on the GNotKG, Bundestag printed matter 17/11471.
- Commentary literature on cost law and the GNotKG.
This overview provides a detailed and comprehensive presentation of all legal aspects of the GNotKG for use in a legal lexicon.
Frequently Asked Questions
What does the value calculation under the GNotKG regulate, and how is the transaction value determined in practice?
The Court Costs Act for Notaries and Courts in Germany (GNotKG) provides that the amount of fees for notarial and judicial activities predominantly depends on the so-called transaction value. The value calculation is generally based on the economic interest underlying the respective subject matter or transaction. Particularly relevant are §§ 36 to 79 GNotKG, which contain extensive individual regulations for various types of proceedings and transactions. In determining the transaction value, both material and potential economic consequences for the parties involved must be considered on a regular basis. Often, the parties undergo a detailed determination of value by the notary or the court, which is based on supporting documents, certificates, or the market value. For certain matters (e.g., certificates of inheritance, real estate transactions, company formations), the GNotKG provides special rules for value determination that take precedence over general rules. In contentious cases, parties may apply for a judicial determination of the transaction value, which may be appealed.
According to what criteria are fees and costs determined under the GNotKG in the case of multiple parties?
In transactions involving several parties, e.g., corporate transactions, marriage contracts, or division of estates, the GNotKG sets out in various provisions (e.g., §§ 45, 54, 100 GNotKG) the consideration of all participating parties and their respective interests in the subject matter. The rules ensure that all economic services and counter-performances – even in opposite directions – are fully included in the value calculation if they are related to the transaction. Not infrequently, complex distinctions are necessary to avoid double calculations. The sum of the individual values then determines the final transaction value, which in turn forms the basis for fee calculation. Also important in this context is § 39 GNotKG, which allows for a maximum value limitation in cases of multiple conflicting interests.
What exceptions and special rules does the GNotKG provide for particular legal transactions and procedures?
The GNotKG contains numerous special rules for particular legal transactions and procedures. For example, in family law matters such as adoption, pension equalization, or annulment of marriage, differing value bases are provided that reflect the economic circumstances of the respective life situation. A similar situation arises in probate matters, where § 40 GNotKG, for instance, takes the net assets of the deceased into account when calculating the value for applications for inheritance certificates, allowing for debts to be offset. Real property matters are subject to special rules under § 46 GNotKG, such as calculation based on the market value of the property. For corporate participations, foundation formations, or certain land register matters, §§ 53 et seq. GNotKG provide specific requirements for value determination. These special regulations must be strictly observed and take precedence over general rules.
What are the consequences of an incorrect value calculation under the GNotKG for the fee assessment?
If it is subsequently found that the value calculation was incorrect, § 38 GNotKG provides that the transaction value may be corrected by the competent court or administrative authority. An excessive value calculation usually results in overpayment of fees, which may be reclaimed once discovered. Conversely, the fee claim may be increased if it turns out that a value that was too low was used as the basis, as long as the fee notice has not yet become final. The notary is obliged to inform the parties about any deviations. In cases of dispute, a judicial decision on the transaction value can be obtained, for which a fee is usually charged and which can be reviewed on appeal. In addition, incorrect fee assessments can lead to liability issues if a party suffers financial loss due to the inaccuracy.
How can parties contest a fee assessed under the GNotKG?
Parties who disagree with the fee assessment or the determination of value under the GNotKG have the right, under §§ 127 et seq. GNotKG, to apply for a judicial determination of the transaction value. This is generally done by submitting a simple, informal application to the competent local court within a period of usually six weeks from receipt of the cost statement or value determination. The necessary facts will be established in the proceedings; the court independently reviews the legality of the calculation and may decide both in favor of or against the applicant. An immediate appeal against the judicial decision is generally admissible. The initiation of such value determination proceedings does not suspend the obligation to make a provisional payment of the assessed fee.
What should be observed regarding the obligation to bear costs under the GNotKG?
As a rule, the GNotKG stipulates that the obligation to bear the costs falls to the principal or applicant, unless another statutory or contractual cost debtor is specified (§ 22 para. 1 GNotKG). Several cost debtors are jointly and severally liable according to § 22 para. 2 GNotKG. In certain cases, e.g., in corporate restructurings or divisions of estates, the law expressly determines who is to bear the costs. If the cost debtor is insolvent, the notary may resort to any security that exists (§ 69 GNotKG). In judicial proceedings, the principle applies that the successful party may claim reimbursement of costs from the unsuccessful party, unless otherwise stipulated. The obligation to bear costs is not a necessary requirement for the validity of the notarisation or the procedure, but it is necessary for the enforceability of the fee claim by the notary or the court.
Are there ways to influence or reduce the amount of fees under the GNotKG?
The amount of fees under the GNotKG is in principle determined by law and the respective transaction value, and does not allow any discretion for arbitrary reductions. Discounts or fee exemptions are only possible in the cases explicitly specified by law, for instance for matters of minor economic importance or for charitable purposes (§ 90 GNotKG). In addition, there are hardship provisions under which a reduction or waiver of the fee may be ordered if collection would be unreasonable. Likewise, in the case of several similar transactions within a single notarial deed, a reduction of fees may apply. Parties have the option to reduce the scope of the notarial assignment or of the matters to be registered, which has a direct impact on the transaction value and thus the fee amount. Careful documentation and transparent coordination with the notary on the business content in advance of notarisation or making an application can also help avoid unnecessary value assessments.
