Private purchase | Lukinski

Inherited parental home – sell, rent or use yourself?

Laura — Tue, 15 Dec 2020 22:33:24 +0000

Inheriting your parents’ house – Sooner or later, as the child of property-owning parents, you will be faced with the question of whether to sell, rent or keep the house. The sale of the parental home is not always directly linked to an inheritance. If your parents become dependent on care and can no longer keep and manage their home themselves, a sale is often the best and only solution. However, there are numerous emotions and memories in that house that affect your entire childhood, making a rational decision impossible. It is not uncommon for the placement of one or both parents in a senior residence to have to be financed through the proceeds of the sale of the property. If you own a property yourself, self-occupancy is not on your agenda in most cases. Also, the location of the property or differing opinions with your siblings as co-heirs may necessitate selling it as the only option.

What is important when selling the family home

Before the real estate agent can act, some basic facts must be clarified. Only those who are listed in the land register and are therefore the legal owners of the parents’ house are allowed to sell. In most cases, both parents are listed as owners in the land register, so that in the event of death, the surviving parent counts as the sole heir and decides how to deal with the property. If both parents are deceased, you as the children are the next heirs and can decide to sell the parental home, provided there is agreement.

In advance, a change in the land register entry is necessary, as your regular ownership is the basic requirement for the sale of the parents’ house. It becomes very complicated if one parent is already deceased and the other parent is no longer legally capable. In this case, if there is no general power of attorney and the surviving parent does not want to sell the property, only a guardianship court can decide on the sale.

Make arrangements in good time!

We recommend that you make such arrangements at a time when your parents and property owners are legally capable. A notarial power of attorney or a gift of the house during your lifetime simplifies your ability to act in the event that you have to sell your parents’ house and use the proceeds to finance, for example, the accommodation of your parents in a nursing home. Once all necessary matters have been clarified in advance, we can sell your parents’ house promptly and at the real market value on your behalf.

Selling your parents’ house? The process in detail

More information about inheritance:

Inheritance settlement

Properties inherited in community pose a particular difficulty when selling. Within the framework of a community of heirs, there are several owners in the land register. This circumstance has a detrimental effect on the interest of potential buyers and makes the sale process more difficult. There is a solution to simplify the settlement and at the same time provide for a clear guideline of all heirs with equal rights. The settlement of an estate refers to the dissolution of a community of heirs, which is carried out on the basis of clear contractual regulations and is not bound by any particular form. Everything you need to know about inheritance settlement.

Community of heirs

From practice it is known that a community of heirs rather rarely agree. But from the disagreement and open disputes in relation to a real estate inheritance arise losses that you can avoid with prudence. Avoid conflicts about the estate by consulting an estate agent and finding the best way with support. If the will does not provide otherwise, all co-heirs are equally entitled and obliged. This means that a sale is often the best solution and gives you the opportunity to divide the proceeds of the estate between all the co-heirs, thus avoiding the problem of an inheritance dispute. Learn more about the community of heirs.

Certificate of inheritance

You are registered in the will as the sole heir of the parental home. If the will is notarised and legally valid, your inheritance will not be challenged. Nevertheless, without an additional certificate of inheritance, you will face a problem at the latest if you become the owner of the property as a result of the correction in the land register and wish to sell it on, for example. You should have a certificate of inheritance issued irrespective of the will and thus protect yourself when inheriting houses or apartments. Everything about the certificate of inheritance.

Inheritance Insolvency (Heir): Procedure & Requirements

Laura — Fri, 09 Oct 2020 10:00:53 +0000

Insolvency of estates – When you deal with the topic of real estate, you always come across words that are not immediately meaningful. You suddenly find yourself in a situation you have never been in before and for this reason you often need advice quickly. In this article, you will learn everything you need to know about estate insolvency. Don’t worry about exploring unknown words, but rather devote yourself to topics that are really important to you.

Insolvency of Estates – What is It?

The death of a person who was close to us is always a heavy burden. No matter whether it was already foreseeable that a person would not have long to live or whether it was a surprising stroke of fate, the situation is never easy for the relatives. The death of a person is usually not only connected with incriminating grief, but the topic of inheritance must also be dealt with. There are the most different situations: Some people have already thought about who should inherit which shares before their death and other people have not thought about it or have had no more time to deal with the topic because they were surprised by a stroke of fate.

Legal or Voluntary Succession?

First of all, you should know what the difference is between a legal and a voluntary succession. Basically, it is important to know that the arbitrary succession always takes precedence over the legal succession. We speak of an arbitrary succession when the deceased has left a will by determining which heirs are to inherit what. In this context, heirs can be all natural persons. The heirs therefore do not have to be related to the deceased.

The legal succession always comes into effect if the deceased person has not left a will or a testamentary disposition. The legal succession is defined in the Civil Code and refers to three grounds of appeal: kinship, marriage and citizenship.

Voluntary succession: the deceased person has left a will that specifies who inherits what
Legal succession: Deceased person has not left a will. The grounds of appeal: kinship, marriage and citizenship are included.

Inherited debts – the Negative Side

But it is not always the case that heirs inherit great wealth. If the deceased had open debts to creditors and was liable with his inheritance, then the creditors can claim them from the heirs. Even the heirs’ own property is not protected in such a situation. You must expect to have to pay the debts of your relative or spouse. But what can you do if such an inheritance would drive you to ruin? If you are unable to settle the debts of your relative or partner under any circumstances, there is a way out of this situation.

This is where the word estate insolvency comes into play. But what is that actually? How does something like this work exactly? What are the prerequisites for an estate insolvency?

Insolvency of Estates: Requirements, Procedure & Proceedings

The aim of a petition for bankruptcy is to protect one’s own assets from being accessed by the creditors of the deceased person. So far, so good, but how exactly does the procedure work now? An application for composition insolvency must always be filed with the competent insolvency court. If the proceedings are initiated, the insolvency debtor still has to stand in for the inheritance, but he no longer runs the risk of being liable for the debts of the deceased with his own assets. In this situation, the insolvency debtor only has to use his estate to pay outstanding debts.

The application must be submitted to the competent insolvency administrator

There are two possible conditions for the opening of an estate insolvency:

Overindebtedness of the estate
Insolvency of the estate

Now you will learn how it all works. Once you have successfuly filed the petition for composition insolvency, the work of the insolvency administrator begins. The task of the insolvency administrator is to list the outstanding debts and to contact the creditors in order to develop repayment proposals. It is often the case that the outstanding debts cannot be paid with the estate. If this is the case, it is the task of the insolvency administrator to make arrangements with the creditors. The aim of this administration is to ensure that as many debts as possible can be settled.

If you find yourself in such a situation, it is important that you file the petition as soon as you know that you are not able to pay the debts of the deceased. As soon as you know this, you are obliged to file a petition with the bankruptcy court. Inform yourself in time and you will be saved many costs.

Compulsory mortgage as security mortgage

Laura — Thu, 16 May 2019 11:00:55 +0000

Compulsory mortgage – A compulsory mortgage is the registration of a mortgage in the land register in the course of a compulsory execution. A forced mortgage is also considered a security mortgage, but unlike a normal mortgage, it is not contractually agreed and is entered in the land register in the course of the foreclosure. Foreclosure mortgages make foreclosure auctions possible and thus result in advantages for the creditor. The advantages include, among others, the resulting participation in a foreclosure, the receipt of a share in the auction proceeds and the obtaining of the redemption right.

Compulsory mortgage at a glance: Compulsory registration of a mortgage in the land register

Registration of a mortgage in the land register by foreclosure
Is also considered a security mortgage, but is not contractually agreed and is only entered in the land register in the course of compulsory enforcement.
Allows foreclosures and benefits for the creditor
Advantages include: Creditor’s participation in foreclosure, receipt of share of proceeds and obtaining the right of redemption.

Receivership of a property

Laura — Sun, 21 Apr 2019 11:00:52 +0000

Compulsory administration – If, at the request of a creditor, the local court orders compulsory administration of a property, the creditor is given access to the income from this property. The difference to a forced sale is that the creditor is not satisfied by the substance of the property, but by the current income from the property. Especially in cases where the owner of a property denies access to the creditor, a forced administration is appropriate, as this gives the creditor access.

Receivership at a glance: Access to the income of a property

Ordered by the creditor through the local court
In contrast to a compulsory auction, the creditor thereby only receives the proceeds of a property, and not the property itself
If the owner of a property denies access to the creditor, a forced administration is particularly relevant.