best-of-max
2022-11-11 08:08:47
- #1
A mother (retiree) wants to transfer a property, or a plot of land (approx. 300 sqm) with 2 buildings (a total of approx. 210 sqm living space) to her daughter and receive approx. €400,000 for it. One of the properties is rented out (as a retail store). The second property is currently unoccupied. The daughter wants to move in and live there with her partner. The total value of the property was estimated at approx. €400,000 by the local court and a real estate agent.
Mother and daughter want to complete the transaction preferably without involving a bank/loan. Instead, a monthly payment (approx. €1,400) from the daughter to the mother is to be made until the amount of approx. €400,000 is paid off.
The case takes place in Hesse.
My questions:
Which system is the most sensible for this type of transaction? A gift, rent-to-own, life annuity, etc.
It is important that everything is also contractually (i.e., notarized) regulated.
It will not be necessary for the daughter to financially burden the house, for example, for renovations.
Since the daughter and her partner (not married) share the purchase price, it must also be clarified that the property belongs to both partners. This does not have to happen in the first step, but should take place quite soon after the transfer of the house. What can be done here?
Two factors are especially important in this case:
1. Avoidable costs (e.g., taxes) should be kept as low as possible.
2. Legal certainty must exist for all parties (mother, daughter, partner).
The mother must be secured to receive her regular payments within the agreed period.
Daughter and partner must both be the owners of the property, as they are both equally involved in the financing.
Thank you in advance for your answers. Should you have any further questions regarding the matter, I am happy to provide them.
Mother and daughter want to complete the transaction preferably without involving a bank/loan. Instead, a monthly payment (approx. €1,400) from the daughter to the mother is to be made until the amount of approx. €400,000 is paid off.
The case takes place in Hesse.
My questions:
Which system is the most sensible for this type of transaction? A gift, rent-to-own, life annuity, etc.
It is important that everything is also contractually (i.e., notarized) regulated.
It will not be necessary for the daughter to financially burden the house, for example, for renovations.
Since the daughter and her partner (not married) share the purchase price, it must also be clarified that the property belongs to both partners. This does not have to happen in the first step, but should take place quite soon after the transfer of the house. What can be done here?
Two factors are especially important in this case:
1. Avoidable costs (e.g., taxes) should be kept as low as possible.
2. Legal certainty must exist for all parties (mother, daughter, partner).
The mother must be secured to receive her regular payments within the agreed period.
Daughter and partner must both be the owners of the property, as they are both equally involved in the financing.
Thank you in advance for your answers. Should you have any further questions regarding the matter, I am happy to provide them.