What is the advantage of partial sale?

You think about the partial sale of your property? In our guide we have already reported a lot about the partial sale of real estate and of course answered the question, is a partial sale of real estate useful? Selling to your own children, angel children – how does it work?

The great advantage of partial sale is the quick transfer of the purchase price. Finally, you save a lot of steps in the real estate sale. For example, a large part of the communication with potential buyers, the subsequent credit checks so that you find a serious buyer.

Partial sale to private possible?

In principle, the partial sale of real estate to private is possible. Anyone can acquire shares in your property and thus become a part owner. Basically also a good idea, after all, the sales price is transferred quickly. You surround the typical buyer search when selling real estate, if you have a direct contact for the partial sale.

Private sell via portal?

Not everyone has family, usually children, who buy off part of the property. What are the alternatives?

Most private buyers looking for offers via real estate portals will not accept a partial sale, but want to buy the entire property. If you want to sell a property in part, you should look for people in the immediate vicinity who might be interested in participating. In this case, you should contact one of the partial sale providers.

Partial sale apartment, house, land – all possible.

Example: share of 20% sold to children:

Right of residence and right of use: costs?

After the partial sale, you only need to agree on the use of the property.

What are the costs of the partial sale?

If you want to retain the sole right to live and use the property, the partial buyer will usually demand a usage fee from you, the so-called “usage fee”. Of course, in the case of a private partial sale, for example a partial sale to your children, you can agree that no usage fee has to be paid.

The usage fee is freely negotiable.

The typical user fee is approximately 3% p.a.

Providers usually charge 3-5% p.a.

Also in the guide on the subject of partial sale providers in comparison, we have already calculated the various user fees of the larger providers (financial companies). If you sell your property in part to a company, like such a financial company, then the usage fee is usually between 3% and 5% (of the sold share) per year.

Means simply, if you sell 100,000 euros of your property in part, you pay an annual user fee of 3,000 to 5000 euros.

Tip. Secure yourself, the usufructuary right

In all cases, however, you should protect yourself, especially with regard to your lifelong right of residence and right of use. The technical term for this is the so-called “usufruct”. The usufructuary right stipulates that you have a complete right to live in and use the property until the day of your death. Accordingly, you are independent of any decisions made by your future co-owners. Even if they are your children or grandchildren.

Purchase contract at the notary:

Taxes on partial sale to private

The name says it all, this tax is intended to limit speculation in the real estate market.

Speculation tax explained

With the speculation tax, the legislator says: If you buy a property, you may only sell it tax-free after X years – even in the case of a partial sale. X = years differs depending on whether you bought the property as an investment (rent it out) or live in it yourself (owner-occupied).

Speculation period:

• Third party use – 10 years
• Self-interest – 3 years

Amount of speculation tax

The amount of the speculation tax always depends on the own tax rate. Thus, the speculation tax is quickly over 25% and for high earners also quickly 40%.

Read more here about the:

• Speculation tax

Partial sale of real estate. The guide

You want to learn more about the partial sale of real estate? Then take a look here at my big guide, in which I really highlight all aspects, from the advantages, to the disadvantages, to possible alternatives, such as the mortgage loan or even the real estate pension. Of course, also everything on the subject of taxes in the partial sale. All experiences:

• Partial sale property

Documents for the bank: photos, energy certificate & purchase contract

Financing requests for real estate purchases are part of your bank advisor’s daily business. If you want to score points with your financing request, you should provide all important documents directly. This saves your bank time and energy, as it does not have to request extra new documents. Instead, the financing plan can be set up quickly and the financing process can be completed. So that you can enjoy a quick financing approval, we recommend that you prepare your documents in two folders:

1. Folder: Credit rating
2. Folder: Object

Now let’s take a closer look at the object folder:

House & apartment exposé: master data of the property

First of all, the bank needs a property file with the basic data of the house or apartment. Finally, the bank must know the master data of the property. You can either create an exposé or a fact sheet for this purpose.

You have the following options:

• Real estate exposé
• Fact Sheet

Photos of building and plot

In addition to the most important basic data, the bank also needs some photos of the object, so that it can get a visual impression. Make sure that the pictures have been taken in good light. Daylight is best suited for this purpose. In addition, you should give a lot of importance to a good quality of the photos, so that also details of the property can be seen. The bank not only needs photos of the property itself, but also of the immediate surroundings and, if necessary, of the common property.

You should attach photos of this:

• Property
• Community property
• Immediate surroundings

Parcel map, floor plan & insurance

In addition, the bank needs the cadastral map of the property, as well as the site plan. Also the floor plans of the property, as well as the living space calculation are to be attached. Another important document is the extract from the land register. The land register is an official, public register and contains legal relationships to the property. In addition to land charges, mortgages and liens on real property, it also contains further information on the respective ownership and residential relationships.

The following documents must also be forwarded to the bank.

• Parcel map and site plan
• Floor plans
• Living space calculation
• Land register excerpt
• Building insurance
• Energy certificate

In order for the bank to get an accurate picture of the property, the hallway and site plans are especially important:

Special case: Rental agreement for rented property

You can buy a property rented or unrented. If you buy a rented property, you must also give the rental contracts to the bank. In the case of unrented property, this step is of course omitted.

Special case: Homeowners’ association (WEG)

If you purchase a house or a condominium as part of a condominiumowners’ association (WEG), add the declaration of division to your property folder, as well as relevant agreements, the last three minutes of the owners’ meetings, the collection of resolutions and the WEG administrator’s contract. The statement of charges and the property tax assessment should also be in your folder.

Here is a brief overview:

• Declaration of division – with certificate of seclusion
• Collection of resolutions – last 3 owners’ meetings
• WEG manager contract
• House service charge statement
• Property tax notice

At the end: draft purchase agreement

The last object in the folder is then your draft purchase agreement, which thus completes the real estate folder.

Reading tip: Create purchase contract

Object folder for the bank: checklist

Here again the most important documents summarized at a glance;

1. Exposé / fact sheet of the property
2. Photos of building and plot
3. Parcel map, floor plan, insurance & co.
4. Rental contract (if available)
5. Documents of the WEG (if available)

Once you have all these documents together, nothing stands in your way of successful financing!

Would you like to know more about buying an apartment or house? Then you will learn everything from A-Z here: owner-occupancy or renting, financing a condominium, apartment search, real estate portals, real estate agents, valuation, purchase prices, negotiations and taxes. Knowledge and experience from experts, in one guide.

✓ A guidebook
✓ All facts
✓ Insider tips
✓ Purchase checklists

Learn step-by-step the home buying process and lots of insider tips!

• Buy apartment

Double leasing at a glance

• Landlord concludes rental agreement with two tenants
• First tenant has more rights than new tenant
• If the contract is concluded at the same time, the landlord may decide who is to move in
• Also for holiday homes, commercial premises & parking spaces for cars
• Landlord must pay damages

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