House found, implement payment agreement / handover in detail

Hello everyone,

I am new to the forum as of today, but I have been reading the posts for some time and find some of them very interesting.

Brief background:

My wife, my two little sweethearts and I have been looking for a house in the Düsseldorf area for about 1 1/2 years now. Due to the favorable interest rates and the already very expensive location, it is very difficult to find something reasonable... the location is very important to us and the budget should also fit.

Now we found a house in a classified ad... from a private seller... affordable... and above all exactly in the area where we would most like to live. Called directly, visited and stamped it as a dream house. Except for one or two compromises, it fits us absolutely.

The nice owners, already retired, liked us right away as well and so after one day we gave our confirmation to buy. A dream is coming true :D

The financing request with the bank is running and we want to schedule the notary appointment immediately after bank approval.

The current owners are moving into a new construction project which is supposed to be completed early next year (February / March). It is still a little way off, but anticipation is said to be the best joy.

But now comes a little setback: the owners would like us to put down a six-figure sum, pay a little more over the months and transfer the approx. remaining 20% at the key handover; I would basically be financing the construction progress of their own home :(

Honestly, I just think that the two have not really thought about what they are demanding from us. I can hardly move in in March and by then already have transferred so much money. From the moment the bank transfers the money to me I am already paying a large installment to the bank. Or am I seeing this wrong?

My acquaintance (from the real estate business) advised me that the current owners should simply pay "rent" until they move out. However, without a rental agreement. The notary should record this in the contract.

Since we definitely want to have the house and have gotten along well with the owners so far, I would be very grateful for advice.

A topic on the actual financing will follow in the forum in the next few days ;).

I am grateful to anyone who can give tips here.

But now comes a bit of a downer: the owners want us to put down a six-figure sum, then pay a little more over the months, and upon handing over the keys transfer roughly the remaining 20%, I would basically be financing the construction progress of their home :(

I can’t imagine a notary would be happy to go along with such a deal. They basically want you to provide free interim financing – a bad joke! Especially if the ownership transfer is not already connected with that.

That’s not how it works. Plots of land with houses are sold as "zug-um-zug" transactions. And the notary "directs" the procedure. First comes the contract signing, then the entry of the notice in the land register, and when everything is ready, the notary calls for the purchase price on the agreed date. At the same time, the sellers are obliged to move out. Then the keys are handed over and finally the entry into the land register is made.

Honestly, I just think the two didn’t think about what they are asking from us. I can hardly move in March and by then will have already transferred so much money. From the moment the bank transfers the money to me, I’m already paying the bank a large installment. Or am I seeing this wrong?

I hardly believe that the bank would agree to such a procedure at all. However, with the installments you can arrange with the bank, for example, to pay interest only for the first few months.

My acquaintance (from the real estate business) advised me that the current owners should simply pay "rent" until they move out. But without a rental contract. The notary should put that in the contract.

That could be done by bringing the sale forward. But why without a rental contract? I would always secure myself contractually there, especially regarding the fixed term!

I also agree with ypd.

However, I would avoid calling that "rent" (just adjust the purchase price accordingly), because tenants are hard to get rid of ... Who knows when their construction project will be finished ....

No RENT! Rental income must be taxed. It would be a compensation payment! If it has to be paid at all. We live without compensation, no rent or anything similar. That's why the sales price was correspondingly low :(

Hello,

We are now looking again from scratch, and we are not opposed to new construction, but finding a plot in this area that costs less than 200,000 EUR is almost impossible.

I can possibly assist you both with existing buildings and maybe with plots (if it’s not exactly the Kö). If you are interested, just contact me and let me know "what" you are looking for "where" plus a bit more information.

Rhineland greetings