My property, building together

Oh, today is not a holiday everywhere after all. I'm already curious to hear what the notary says. Thanks in advance for reporting.

Hi,
Just fresh from the notary, I want to emphasize right away that every case must be considered individually etc. And what is best for one person and what is best for others, everyone has to know for themselves.

We have almost the same problem as the initial post, only that we don’t have a property yet. But one has a lot of equity while the other has none.

The notary showed us 2 ways that would be best for us.

1: Before the loan is signed, we calculate how much % each person will eventually pay and write these ownership % into the land register.

2: You could register what one person has more as a land charge.

We both would have to make a will, the disadvantage is the inheritance tax that would be due upon death. (But maybe an idea to bridge the time until you get married)

Regarding gift tax, he said that in option 1 no one would receive a gift, but I will have that checked again by the tax consultant in 2 weeks.

What is best for you or others, everyone has to know for themselves or find out through individual advice.

Regarding 1, how is that supposed to work? Through the [teilungserklärung] the ownership shares? Regarding 2: then subordinated behind the bank ... thank you very much for the information

1: we calculate before the loan is signed how much % each pays in the end and write these ownership % into the land register.

And if children come and one stays at home, does the other then own the house? I don't know...

2: one could register what one has more as a land charge.

If the property loses value, it looks bleak for the one who has to pay off the debt. Sale could also be blocked.

Of the two evils, I would still prefer version 1.

1: before the loan is signed, we calculate what percentage each person ultimately pays and write these ownership percentages into the land register.

But that is only static. If the value of the house develops positively, for example, one participates significantly more than the other. What happens if one no longer pays the loan at all? Etc.

2: one could register what one has more as a land charge.

... and this land charge is worthless in the foreclosure auction in case of doubt. And then? Many questions about the notary's proposals. It will only be really clean if there is a contractual basis that must be adjusted over time, however. Really exhausting

I can advise you to change the land register entry before the start of construction, otherwise it will be significantly more expensive, as the fees are based on the value.

We somehow messed that up...