Net cold rent lease contract clause for real estate loan

2020-08-28 13:02:32

... and in the metropolitan areas, you buy the unbuilt condominium for €10,000 + X or in Berlin the old building to be renovated at similar prices.
And you seriously worry about a few months' rent (you don't lose more than that)?
At most, you get a tiny little kitten as a tenant.

Uh... that was probably a typo? In which metropolis do you get a condominium for €10,000 + X? Or does X = €200,000?
I didn’t understand the rest, who is losing a few months' rent here?

A friend just told me that they only had to submit a signed letter of intent from a potential tenant (tenant X agrees to pay Y € after completion). No one is still living there because that didn’t materialize, and so far no one from the bank has complained. It was more about the officer not knowing the usual rents in the area, which probably wasn’t a condition in the property contract (he didn’t have it on hand at the time).
So it didn’t really help us directly.

So again...
If we accept the condition and find someone who signs a lease for the unrenovated apartment...
Does the bank then also check whether the tenant actually moves in? I mean, if the renovation takes three months longer than planned, or the tenant doesn’t like the apartment after it’s finished... then they can still back out. Does the bank then want to see bank statements showing the rent payments after the tenant has moved in?
I just don’t quite understand practically how this is supposed to work ideally.

As I said, we will discuss this directly with the bank first anyway; ideally, we would prefer if they just drop it again.

2020-08-28 13:04:10

10,000+x per m²! I assume

2020-08-28 13:08:16

Uh...was was probably a typo? In which metropolis do you get a condominium for 10,000 EUR+X? Or does X mean 200,000 EUR?

Per sqm

I didn't understand the rest, who loses a few months' rent here?

The tenant, if the apartment turns out to be crap after all. Write a termination and simply move out afterward. The condominium buyer has just sunk many hundreds of thousands of euros and ends up having to argue with the developer, fight with the neighbors (you can't choose them), or live in an apartment they actually don't like. The buyer also incurs significant additional purchase costs.

I just learned from a friend that they only had to submit a signed letter of intent to rent from a potential tenant

Then just have that written into the contract!

If we accept the condition and find someone who signs a lease for the unrenovated apartment...
Does the bank then also check whether they actually move in?

Usually not. But what if they do?

I just don't quite understand how this is supposed to work in an ideal scenario in practical terms.

Ask the bank! Maybe they also want proof of a rent income account at the bank. Or they don't care. Or they check occasionally afterward. Or have the rent statement submitted every year. Or or or.

2020-08-28 14:17:40

Uh... that was probably a typo? In which metropolis do you get a condominium for 10,000 EUR+X? Or does X mean 200,000 EUR? I didn’t understand the rest, who is losing a few months’ rent here?

I just found out from a friend that they only had to submit a signed letter of intent to rent from a potential tenant (tenant X agrees to pay Y EUR after completion). No one lives there yet because that didn’t materialize, and so far no one from the bank has complained. It was more about the caseworker not knowing the usual rents in the area, probably because that wasn’t listed as a condition in the real estate contract (he didn’t have it on hand at the moment). So it didn’t really help us directly.

So again... If we accept the condition and find someone who signs a rental contract for the unfurnished apartment... Will the bank also check if that person actually moves in? I mean, if the renovation takes three months longer than planned, or if the apartment doesn’t suit the tenant once it’s renovated... they can still back out. Does the bank then want to see bank statements showing the rent payments after the tenant has moved in? I just don’t quite understand practically how this is supposed to work ideally.

As I said, first we will discuss this directly with the bank anyway, preferably we would like them to just remove it again.

so what?

my neighbor also always tells me he has a Porsche in the garage and drives to work in a Fiat

2020-08-28 23:36:56

Just sign the contract, the bank won't check anyway! That's what you wanted to hear, right?

2020-08-29 06:23:25

Just sign the contract, the bank won't check! That's what you wanted to hear, right?

Best idea. If the bank calls, TippgeberFreund should handle it.

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Net cold rent lease contract clause for real estate loan

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