Preliminary contract for land purchase

Hello everyone,

I have a question about buying a plot of land from a private seller.

We applied for a plot of land from a municipality, and in the next few days it will be decided whether we are allowed to buy it or not. Yesterday, I was offered a plot of land from a private seller in another place, which we actually like even more. However, the owner can only sell this plot because of the 10-year rule in October. He received the plot from his parents in October 2010.

Now the following:
- we want to secure getting the plot in October
- he should not suffer any financial disadvantages due to taxation

Is it possible to conclude and have notarized a preliminary contract now, in which the purchase is then realized in October at the purchase price x already registered now, or does it make no difference for the seller because he would not comply with the 10 years then and would have to pay taxes on everything? So, for tax purposes, does the date of the preliminary contract apply or the date of the contract to be concluded in October with transfer of ownership? Has anyone perhaps had any experience with this? We would just like to secure that nothing can go wrong here anymore, and in the worst case, we cancel the plot with the municipality and the private seller thinks it over again until October and then we have nothing at all. I found an article on Immoscout that explains the taxation well, but it does not mention the preliminary contract.

If this would work with the preliminary contract so that he does not suffer any financial disadvantages, we would probably try to get an appointment with the notary as soon as possible. Then we might only be in a short 'blind flight' period between canceling with the municipality and signing the preliminary contract with the notary, but not for half a year.

Thank you very much and best regards
Tobias

Is it possible to already conclude and register a preliminary contract with the notary now,

Conclude a notarial option contract that secures the property for you. Exercise of the option right from October until, for example, mid-2021. Then you can, but do not have to, buy. And the seller cannot sell elsewhere, as you have exclusivity. The purchase price and, if applicable, an option premium creditable against the purchase price (which the seller then earns if you do not exercise the option) are also agreed upon in the option contract. This is routine in the commercial real estate sector. But it costs money at the notary.

Hello

A preliminary contract is a letter of intent that does not yet transfer ownership. It should therefore fall within the green area.
Notaries are certainly trained in this. A consultation with the prospect of getting the order to prepare the preliminary contract and the purchase contract should motivate the notary.

Steven

The owner can only sell this property in October because of the 10-year rule. He received the property from his parents in October 2010.

If his parents transferred the property to him as a gift and they already owned it before 2010, no tax is due. The period starts when the parents acquired it if the gift is to the son...

Which 10-year rule? That is related to renting, isn't it?

Which 10-year rule? It’s related to renting, right?

It only applies to developed properties. For land, it always applies: speculation tax is due before the 10-year period expires.