Agreement when buying a house, the old owner moves into a retirement home

Good morning!

My name is Thomas and I come from Düsseldorf. After at least 2 years of searching, my girlfriend and I have now found a property. It is a single-family house on a plot of about 500 sqm. The property is located exactly in our village and we are overhappy that we got this property. We have already agreed with the owners, an elderly couple, meaning the purchase price is set (financing logically as well).

And now comes the special feature, which is why I registered here and hope to get some help.

The couple is still living in their house at the moment but have decided for age reasons to move into a nursing home. Registration, etc. already exists. A move into the home is expected next year.

Because the couple was very accommodating with the purchase price, we have agreed that they can stay in their house as long as they can "seamlessly" move into the nursing home.

However, I would like to set up a real estate financing soon due to the very good interest rate situation. I am fortunate that the bank provides me with the loan free of charge for 6 months. Only after that will commitment interest be charged.

Now my question is, how would you fix such a constellation in writing, if a move to the nursing home, for example, could only take place in September 2012?

Kind regards

Thomas

Hello!

So, first of all, I would look for a different lender. You can easily get 12 months of interest-free provision period.

How you formulate the contract clause depends on your priorities. Do you want to build a secure friendship with the sellers or protect yourselves against risks;)?

If you agree on penalties for possible performance delays, e.g. a certain amount per month after 1.4.2012, you risk the sellers withdrawing just to be safe.

I would set fixed dates for transfer of ownership and handover, with a tiny note about liability for damages. This means
1. You get the house:D
2. You take no financial risk:D
3. In case of delay, there will be plenty of legal trouble because of this vague wording, but: see 1. + 2. :p

Regards,
TomTom.

Hey,

so I thought 6 months of free provision was already a lot. I heard that the usual case is 3 months. Regarding the costs after the end of the provision phase, it is not a penalty payment, but the 0.25% provision interest that the bank charges me. I don't want to make any profit from that.

And what could possibly be agreed upon as a fixed date for the purchase price payment? I thought, if the confirmation from the nursing home is available, that a place will become free at time XY.

Hey,

well, I thought 6 months of free provision was already a lot. I heard that the normal case is 3 months. Regarding the costs after the end of the provision phase, these are not penalty payments, but the 0.25% provision interest that the bank charges me. I don't want to make any profit from it.

And what could possibly be agreed as a fixed date for the purchase price payment? I thought, when the confirmation from the nursing home is available, that at time XY a place will become free.

Hello!

ask, for example, the HUK. Otherwise: payments are payments, no matter what you call them. And you do realize that the 0.25% applies per MONTH, right!? That makes about 3 percent annually for nothing according to good old arithmetic.

A fixed date is a DATE, no ifs, ands or buts and no conditions!

Best regards,
TomTom.

Hello Thomas,

Now my question is, how would you put such a constellation in writing if a move into the seniors' residence, for example, could only take place in September 2012?

I assume you will appoint the notary.

I therefore recommend that you arrange a consultation appointment with him soon regarding the notary contract. It is his daily business to draft cases like yours to the satisfaction of both parties; watertight. Among other things, this has the advantage that you are out of harm’s way for the "old folks," because they trust the notary and will therefore agree to the necessity of a fixed date or arrangements in case of delay in handing over the house.

Kind regards

One could make a contract and specify that payment will be made by you in 1 year (at the end of the interest-free provision). If no nursing home place is available by then, you agree on a rent and importantly THE OPERATING COSTS (otherwise you are stuck with them). That would secure the interest for you and the sellers their roof until the move.
Regards Bromi