Insight
New since July 2022: notarising hybrid deeds
Published · Updated
The Austrian legislator is pressing ahead with the digitalisation of the notarial profession. From 1 July 2022, it will be possible to have hybrid deeds notarised and to execute hybrid notarial deeds. Austria is thus extending its already leading role in Europe in the digitalisation of the notarial profession. The use case with the greatest potential: the notarisation of mortgage deeds when buying property.
Hybrid deeds
Hybrid deeds are a mix of analogue and digital deeds. What characterises a hybrid deed is that one party signs it digitally (e.g. in an online procedure) while another party signs it by hand in person before a notary. Until now, notarising such hybrid deeds was not legally permitted.
Change in the law
On 1 July 2022, an amendment to the Austrian Notaries Act comes into force. Following this amendment, the notarisation of hybrid deeds will be permitted. In addition to the notarisation of hybrid deeds, notarial deeds can also be executed in hybrid form. This gives the parties greater flexibility, as each party can choose the method of execution it prefers.
A common use case: the mortgage deed for a property loan
A use case that is emerging as a perfect fit is the notarisation of a mortgage deed (Pfandurkunde) as a hybrid deed. A mortgage deed secures a property loan by granting a lien over the financed property. It is standard for every property loan in Austria. However, the vast majority of banks have not yet developed processes that allow them to use a digital signature before a notary. With hybrid deeds, borrowers can now have the mortgage deed notarised online nonetheless. If you would like to have a mortgage deed notarised conveniently online, please feel free to get in touch. Partner notaries on the notarity platform will be happy to help.
Conclusion
In our view, this change in the law is very welcome. By making the options more flexible, online procedures will become attractive to even more people. It also takes greater account of the parties’ individual needs. Austria thus continues to prove that it offers a very modern framework for visiting a notary online.
