Buying land in installments

Hello dear forum members, we have been offered a plot of land (for the future house construction). The price is €140,000. We could pay this amount without a loan. Now the seller, an elderly lady, wants this plot to be paid in three installments. First €70,000, then after six years €35,000, and after another six years the remaining €35,000. She wants this installment payment because she does not want to have such a large sum in her account (negative interest?). Now my question: since we have to mortgage the plot for a loan for the house construction, we are not sure how this will affect the loan approval. The lady would still be (first in line?) in the land register... What can you advise us? Many thanks in advance and have a good start to the new week!

Two questions come to mind:

1) When exactly is the transfer of ownership supposed to occur?
2) How should the last two installments be secured?

The argument "so much money in the account" is a false argument. That should actually be clear. And negative interest rates can still be avoided at any bank or savings bank today without risk for the periods mentioned. I believe there is another reason behind it (I'm guessing SGB).

As a buyer, the "risk" is manageable, but something like that really shouldn't be necessary.

I agree with toxi on that. Probably no one will rush to buy the place because of that... you have a comfortable starting position with equity, if it is financed it will become difficult. No one wants to pay commitment interest.

The transfer of ownership in the land register and the payment are initially independent of each other. If the lady agrees to a transfer after the first installment, you can do it that way. It is unusual in any case.

The transfer of ownership in the land register and the payment are initially independent of each other.

Yes and no. Usually, the passage in the notary contract reads "transfer of benefits and burdens occurs with full payment of the purchase price." This would possibly have to be regulated differently here. But then the question arises about securing the seller's further claims. Perhaps this would work via a trust account or escrow account held by the notary or analogously to the rental deposit account/savings book via the bank. Then the priority for the actual financing would be free. However, this also means that the advantage of paying later is gone for you, as the amount would have to be deposited immediately.

Yes, but these are also additional costs and possibly a different account undermines the meaning and purpose of the good lady ;) so to speak "concealed" payments