Design of building owners' association

Hello

A new building is still planned. Actually, there was supposed to be only a large garage for a travel truck on the property next to ours. However, construction with only an ancillary facility is not permitted.

Now we want to make it a bit easier/support our son’s entry into a property. Therefore, a residential building with 2 residential units is planned. We want to cover the costs for the land and the garage. The costs for the residential building are to be shared 50/50.

What possibilities for structuring the contracts are possible and sensible? To finance the share in the building, he will surely have to be listed in the land register?

I hope I have described the goal sufficiently.

Olli

Make a condominium out of it. That should be the easiest. Then he can finance his apartment and contribute the land part as equity (transfer from parents to children is exempt from real estate transfer tax).

Even though it already sounds as if the path to the DH is decided: Wouldn't it be an option to merge the two plots? It’s not fully thought through yet, but actually no one can forbid you from doing that.

Hello
It will not be a semi-detached house but a house with two residential units. Rental on the ground floor and the son on the upper floor. Here is a quick preliminary draft. We may need to merge the existing neighboring plot, which we have already developed, with the new one, as otherwise there will be a problem with the boundary construction of the garage. About 11m on the boundary and 4.5m high.

Hi

The bank employee would want the son's loan to be secured by a purpose declaration. I am still in the process of reading up on this and understanding the pros and cons.

Is this really advisable? What should be considered apart from insisting on the narrow wording?

Olli

The bank employee would have wanted to secure the son's loan with a purpose declaration. I am still in the process of researching this and understanding the advantages and disadvantages.

Is this sensible? What should be considered besides insisting on a narrow formulation?

First of all, the question to you: who is actually the owner of the property or the duplex? Or will it be a condominium ownership (WEG)? Who is supposed to finance what and how.

Then I can give you an answer.

It sounds as if the son is taking out a loan but will not become the sole owner.