Is a deviation in market value possible when selling real estate within the family?

  • Erstellt am 2021-01-06 19:36:42

rpc

2021-01-07 10:44:06
  • #1
Thank you for your answers, I wrote a post on page 3 in which I elaborate a bit further, my original post was not detailed enough.



Exactly



According to the notary, this right only exists in case of sale but not in case of a gift.



The property is well below €400,000.
I quote the notary's statement: The financing insurer will probably also refuse to terminate the financing (against prepayment penalty), since a sale below market value would be a sham transaction... and we generally only carry out the sale to end the loan agreement.

In fact, I want to build but cannot get financing as long as the financier is the first entry in the land register.



Unfortunately, the possibility of termination does not exist.
 

Tolentino

2021-01-07 10:49:18
  • #2
Then buy the property at market value and your parents gift you the purchase amount for the construction project (later). Property transfer tax does not apply anyway, gift tax also has exemptions in the direct line. Only the notary fees increase, but it should be worth it to be able to build faster...
 

RomeoZwo

2021-01-07 11:00:12
  • #3
Exactly! Agree in the notary contract that the payment at market value is due only in X years, but the transfer in the land register takes place immediately and no mortgage is registered on your parents. The notary will (rightly) then inform your parents that they are taking a great risk (at least if they would need the money). Before the X years, you make a gift contract with your parents whereby amount Y is gifted to you and must be used to pay off your "debts" from the purchase contract.
 

RomeoZwo

2021-01-07 11:08:33
  • #4


I would counter that you of course have to buy (become the owner in the land register) in order to secure your significant investment (construction) and the associated financing. I find the idea of it being a sham transaction just to terminate the loan far-fetched. I also don't know whether the notary is really the right source for legal information in this case (and normally I hold notaries in very high regard). After all, he also benefits from a higher purchase price (higher notary fees).
 

apokolok

2021-01-07 11:09:04
  • #5
Honestly, I don't understand why the insurance company is being so difficult. What do they gain from being listed somewhere in a land register of a low-value property? Are you sure they can't be bought out?
 

RomeoZwo

2021-01-07 11:17:55
  • #6
They want him to complete the financing of the new building with them, and because they hold the first priority position in the land register, they only offer him conditions similar to what other banks would offer for the second priority position (so relatively poor).
 

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