“Selling half of the house”

Many ask the question, can I sell half of my house and still be the sole occupant? The simple answer is: Yes!

At the latest when the children are out of the house, sometimes also the partner, one’s own house quickly becomes large, sometimes too large. You don’t want to separate, but you still need money quickly. The solution for many: The partial sale.

In this guide you will learn everything important for the first step in the partial sale.

• What is partial sale?
• How much do I get for my house?
• What are the follow-up costs?
• Can I also sell everything later?
• …

Partial sale house: what is it?

First, let’s start with the definition of the partial sale of a house.

What does partial sale of the house mean?

As already described in the article on the partial sale provider comparison, you sell a part of your house to a financial company. In return, you get the pro rata purchase price quickly transferred, regardless of banks / loans.

This makes you a community of owners consisting of two parties.

Sell 10%, 20%, 50% from the house

The different sellers buy house shares between 20% – 50%. For higher property values (7-digit) sometimes only 10% of the house can be sold.

• Up to 1 million house value = 10-50%.
• Over 1 million house value = 10-50%.

Optionally, you can also directly plan the total sale in X years. More about this later.

User fee = rent for your house

After partial sale = you have to pay usage fee

The finance company becomes a part owner. In return, you pay a monthly usage fee, “rent” so to speak, for the part of your house that you have sold. Depending on the provider, this usage fee is approximately ~ 3% p.a. (per year). A simple, quick calculation of the user fee.

• User fee (house): 3% p.a.

Formula usage fee (depending on the provider) per month:

• Monthly usage fee = 3% * purchase price (share) / 12
• = 3% * 100.000 / 12

With this you pay 250 euros per month.

User fee at 100.000 Euro = 250 Euro / month

As always, depending on the provider. All providers can be found here in the part purchase house: comparison.

This is how the financial company refinances itself.

Disadvantage? User fee vs. real estate loan

Easy and fast money for your own house, this is a really tempting offer. That’s why you should take a second look at the various partial purchase offers for houses. Why?

Those who resort to the simple offer, quickly get money. For this, pay the monthly user fee from now on. Many use the offer, because you think, I do not get a real estate loan. But they are much cheaper! Currently you pay here only 1% p.a., instead of 3% or more, as with the partial purchase.

Comparison partial purchase / real estate loan:

• Partial sale / month = 250 euros
• Mortgage loan / month = 85 euros

So remember, simply put:

Real estate loan 66% cheaper!

So it’s worth talking to your local bank and maybe 2 or 3 alternatives.

Do you have to pay taxes on the partial sale?

For the direct sale of a property you only have to consider one tax, the speculation tax. Generally speaking, speculation tax is incurred when you buy and resell a property within 10 years. Accordingly, the time at which your property is resold is important, even if it is a partial sale.

• Speculation tax

Partial sale of real estate: advantages, disadvantages, tax & Co.

Read more about partial sale here – A look at costs of use, advantages, disadvantages, the total sale, the calculated increase in value under inflation and a comparison, what is “cheaper”: partial purchase or the alternative real estate loan, more specifically the mortgage loan? In addition taxes, sale from community of heirs, divorce and much more. My recommendations for sellers!

• Partial sale property
• Partial sale provider comparison

Valuation of apartment buildings

The valuation of apartment buildings is a complex task. In addition to the asset value and market value, the income value plays an overriding role. The property valuation includes all information on the size, the location, the income per rented square metre, as well as the condition and the building fabric of the property. All rented and non-rented units must be listed and the maintenance expenses documented.

For investors, information on existing tenants is important, as they pay a lower rent than a new tenant. Another cost-influencing point is presented in the administration. Your offer becomes interesting for capital investors and thus as an apartment house if, after deduction of all expenses, a permanent yield results from rental income.

Sell an apartment building at a profit

While apartment buildings in the past were predominantly properties with numerous tenants, the term is now also used for two- and four-family houses. What is unchanging is the life that is inherent in an apartment house and which is based on a long, traditional history of the property. Sell your apartment house profit-oriented and refer in your offer to facts with which you convince investors and which are verifiable in their entirety. This also includes plausible information on renovation and refurbishment tasks to be provided by the investor after conclusion of the contract. To ensure that the sales process runs smoothly, the creditworthiness and financing of the buyer must be comprehensively checked. A correct assessment of solvency requires experience in credit checks and presupposes that you are competent in the assessment.

Real estate agent tips

You want to sell a house or an apartment, have no experience in the real estate market and want to avoid mistakes at all costs? Then you are well advised to use the comprehensive services of an estate agent and simplify the time-consuming and complex sale of your residential property. When you hire an agent, you don’t have to factor the sale of your property into your schedule, as all tasks are handled directly by your real estate agent and carried out in your best interest.

Luxury properties

The fact is that buyers of luxury real estate have very high expectations of the property they favour and its presentation. Here, larger sums of money change hands than with classic homes in the “normal price segment”. Accordingly, you should pay a great deal of attention to the offer and the sales process and trust an estate agent who knows his way around the sale of luxury houses and apartments. More on the subject of luxury.

Sell condominium

The sale of a condominium requires a whole host of other documents than are necessary for a house sale. Since the apartment is a unit in a multi-family building, potential buyers require, in addition to the apartment details, all details relevant to the owners’ association and meeting minutes, the common facilities and the overview of maintenance reserves. We recommend that you have the apartment sale carried out by experienced estate agents and avoid mistakes in the presentation or sales process. Everything you need to know about selling an apartment.

Sell hotel

If you want to sell a hotel, the professional approach from the beginning is of immense importance. Unlike with privately used properties, the comprehensive valuation and marketing strategy play a concise role. Which group of buyers should be adressed by your offer? Which conditions are relevant in the current lease and which reputation does the hotel have? All these aspects have an effect on the offer price and decide how much interest experienced hoteliers have in your property. More information on the topic of hotel sales.

Costs for real estate agents

As an owner, you do not have to forego professional brokerage of your property for cost reasons. While the buyer principle applies to renting, you will not incur any costs when selling a house through a real estate agent. The broker’s commission is a component of the ancillary purchase costs, which are to be paid by the buyer. The costs for a real estate agent include all assigned tasks and thus the entire organizational effort and the handling of the house sale. If, on the other hand, you sell privately, numerous costs are incurred and must be paid by you. Learn more about the costs.

The partial auction for communities of heirs

Objects such as real estate or land often give rise to disputes in communities of heirs. The ideas of how to proceed with the common property are too different and the participants cannot agree. Every heir has the right to demand a partition of the community of heirs at any time and thus to force its dissolution. In such a case, a partition auction may be the last resort to settle the disputes and dissolve the community of heirs. You can find out here what needs to be taken into account in the event of a dispute and a partition auction.

Learn more about communities of heirs!

Application for partition auction – the correct form must be observed

An application procedure always precedes a partition auction. This application can be made by any heir of a community of heirs. Formally, a written application, which must be submitted to the competent district court, is sufficient. However, it must be accompanied by certain documents. In the first application, it must be proven beyond doubt that the applicant has co-ownership of the property to be auctioned. The appropriate document is a corresponding extract from the land register, which must not be older than six months. Once the application has been received, it is examined by the local court and the next steps are initiated.

Partition auction & community of heirs – Video

The procedure – step by step to the partition auction

The process of a partition auction already begins with the application that one of the heirs from a community of heirs must file with the district court. This is followed by further steps in order to carry out the partition auction in accordance with the law.

The expert opinion – assess the value of the property

A partition auction requires an appraisal of the value of the property or land. The court needs this in order to determine the lowest bid for the partition auction. Such an appraisal can be obtained in three different approaches. The petitioner can obtain a private appraisal, but the entire community of heirs must agree to this step. An alternative is to obtain the appraisal through the court. Often a valuation report is already available. As long as this is not older than a few weeks or months, it can also be used.

The minimum bid – determined by the court

The court sets a so-called lowest bid before the partition auction to ensure that the proceeds of the partition auction can cover the costs of the proceedings and all claims of the heirs. Once this is determined, neither the market value nor the purchase price of the property or land is relevant and the lowest bid is considered the notional value. It is made up of the rights, encumbrances and minimum cash amounts. The person who acquires the property or land at the partition auction assumes all rights and encumbrances in addition to the subject matter and thus becomes the purchaser and debtor.

The auction – the highest bid gets the surcharge

Once the lowest bid has been determined by the court, a date for the partition auction can be set. Subsequently, the partition auction of the property or the land should be advertised in newspapers and on the Internet in order to attract interest in the property. Viewing appointments are also possible in consultation with the community of heirs. On the auction date, all interested parties can submit bids within a predetermined time frame. The highest bid is accepted for the property and the community of heirs may be divided.

The duration – varies from case to case

The duration of a partition auction is different depending on the case. It depends in particular on how long it takes to prepare the expert opinion and how long it takes to process the application. The applicant can only shorten the duration by already having a valuation report available when filing the application and the court agrees to its use.

The disbursement – dispute of the community of heirs

The community of heirs does not successfuly dissolve until the proceeds have been successfuly distributed. Disputes can also arise here. If the testator has not determined the distribution in his will, the statutory inheritance quotas usually apply. If the heirs do not agree, a civil action may be brought. The proceeds from the partition auction are deposited with the district court and are not paid out until the heirs have reached a written agreement on the distribution.

The costs – how much are they and who bears them?

Certain costs are incurred for a partition auction. These include the application costs, the procedural costs, the expert’s fees, the lawyer’s fees and the costs for newspaper and internet advertisements. All these costs are incurred when the court orders a partition auction. The costs for the notification of the co-heirs are part of the application costs. Usually, the costs of the proceedings have to be paid as an advance. Who bears the costs of a partition auction depends on the outcome of the auction. If the auction is successful, all costs will be deducted from the proceeds and thus each heir will share equally in the costs. However, if the auction is not successful, the applicant bears the costs alone and the community of heirs continues to exist.

The alternatives – private sale or voluntary auction

The partition auction involves some risks that should be well thought out in advance. The property could be sold below value and lead to low profits for the heirs. There are some alternatives that eliminate these risks. The property can be sold privately, saving the application, procedural and legal fees. In addition, the heirs can choose the buyer themselves and thus ensure that the property is not sold below value.

Another alternative is the voluntary auction. The community of heirs can turn to a public auctioneer who organises and conducts an auction. The advantage here for the heirs is that the minimum bid can be determined themselves and thus there is no risk of an auction below value. However, in both cases the community of heirs must unanimously agree to the sale of the property.

The most important questions on the subject of partition auctions in communities of heirs

A partition auction can resolve disputes within a community of heirs, but it can also reignite disputes. To avoid mistakes and save time, it is important to take the right steps. Lukinski’s experts answer the most important questions on the subject of partition auctions in detail for you.

Why a partition auction?

A partition auction can put an end to long disputes, especially in communities of heirs, and lead to a result with which all heirs agree. The partition auction also offers the last resort if no agreement can be reached.

What does for the purpose of abolishing the community mean?

The partition auction success for the purpose of the abolition of the community around from an indivisible article, like a property or a real estate a divisible money equivalent to generate.

What is a partial auction of a house? More terms in our property glossary.

A partial auction is held when several people are co-owners of a property. The partial auction turns an indivisible object into a divisible amount of money that can be divided among the owners.

What does § 1010 BGB mean?

Pursuant to § 1010 of the Civil Code, the co-owners of a plot of land may make arrangements for the administration or use of a plot of land or exclude the right to demand the dissolution of the community.

What did ZVG mean?

The abbreviation ZVG stands for Zwangsversteigerungsgesetz. This regulates both the forced sale and the forced administration.

Foreclosure submission for purchase price at a glance: For the protection of the seller

• Is recorded as a submission clause in every contract of sale of a property
• The clause states that the seller can immediately enforce and demand payment of the purchase price from the buyer if the buyer does not pay within the time limit.
• The purpose is to protect the seller from having to go to court and sue for his payout.

Read also:

• Foreclosure explained
• Online portal and local court list
• Prevent foreclosure
• Receivership
• Compulsory mortgage
• Tip! This is how an auction works (external): Compulsory auction procedure

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