Taking possession before gift / usufruct / renting - disadvantages?

Hello everyone.

I am completely new here and also new to the subject of homeownership and property and feel a bit like being in a large bottomless barrel.

I would like to ask a first question here to get oriented and try to keep it as brief but precise as possible. Thank you.

So:

[*]An apartment was purchased by the parents and was and still is empty, but would basically be move-in ready immediately (better than nothing, but there is a functioning bathroom and an old kitchen (with old but working appliances).


[*]The apartment is therefore empty and uninhabited, was never lived in by the parents, nor ever rented out.


[*]The apartment is to be gifted to the child within the next three months, at the latest in June of the current year.


[*]The child (=the recipient of the gift and thus the future owner) wants and can/may move into the apartment as a tenant.


[*]The rental agreement between the parents (=the usufruct grantors) and the child (=the future owner but also tenant) is to be concluded only on the day/date of the gift.

The question:
Is it permissible (I think so), but is it somehow disadvantageous if the child already moves into the apartment now, i.e. before the gift/rental agreement, and lives there rent-free for three months?

Does this have any disadvantages either regarding the tax office, the gift, the valuation of the property for the gift agreement, or otherwise? Or is it completely irrelevant?

Thank you very much!

Best regards

Since editing is no longer possible ...

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For the sake of completeness, point 3 must also state

that a usufructuary right in favor of the parents (=the donors) is to be established,

otherwise the context might not be entirely clear.

Is it permissible (I think yes),

The parents can do (almost) anything they want with their apartment.

but is it somehow disadvantageous if the child already moves into the apartment now, i.e. before the gift/rental contract, and lives there rent-free for three months?

I can't imagine any disadvantage offhand. The apartment with usufruct is practically worthless anyway, as it cannot be sold.

Does this have disadvantages, be it regarding the tax office, the gift, the valuation of the property for the gift contract, or otherwise? Or is it completely irrelevant?

Totally irrelevant.

Thank you for your assessment.

.. if the parents have the usufruct, the child lives in it and wants to renovate, then there are problems with the bank ... and if in doubt also with the tax office, if you want to deduct the renovation costs.

So please check carefully what exactly you want to arrange and what consequences that has.

Hello.

Thanks for the feedback to you as well!

Why do you think there are problems with the bank and the tax office?

" ... if you want to deduct the renovation costs."

Who do you mean by you? The child or the parents? The parents should be allowed to deduct it if they renovate as usufruct grantors, right?

Regarding your further question or comment about what should be arranged or is planned with the model:
The child actually wants and is supposed to live temporarily (about 1 year) in the gifted apartment and then probably move out again, because they will take up a job in another city. At the same time, the parents want to use the apartment themselves in the same period due to their age (this has long been the idea for their old age). So a perspective that suits both of them, including the timing.

Thanks again for the quick answers and the nice level here.

:)