Sanitary | Lukinski

Selling an apartment in a community of heirs: One of them does not want to sell – What to do?

Laura — Wed, 22 Mar 2023 07:29:58 +0000

Selling an apartment in the case of a community of heirs – When the deceased leaves a house or a condominium, the heirs are faced with the question of what to do with the property. Often, they decide to sell it. However, selling a home through a community of heirs can be a complex matter that presents numerous challenges. Find out here how the sale of a jointly inherited apartment works, what you need to consider regarding the certificate of inheritance and what to do in case of disputes and conflicts within the community of heirs. Also: a summary of your rights and obligations.

Rights and obligations of the community of owners

A community of heirs arises when several persons become co-heirs to the estate of a deceased person. As members of the community of heirs, the co-heirs have various rights and obligations.

Rights: disclaim inheritance, sell inheritance & dissolution

The rights include, among others, the right to use the inheritance and the right to sell the inheritance share. Each co-heir has the right to sell his or her share of the inheritance, whereby the other co-heirs have a right of first refusal. There is also the right to dissolve the community of heirs if the community of heirs no longer functions or there is a dispute about the inher itance.

In addition, the co-heirs are permitted to disclaim the inheritance under certain circumstances if they do not wish to accept it or if this would mean that they would have to assume the decedent’s debts. The disclaimer must be made within a certain period.

The rights at a glance:

Reject inheritance
Right to use
Right to sell the inheritance
Right of first refusal
Right to dissolve the co-ownership community

Duties: Rental agreements, management & Co.

The duties of the co-heirs include, among other things, the assumption of tenancy agreements if the decedent was a tenant of an apartment or house at the time of his or her death. The co-heirs also have an administrative duty towards the inheritance. They must manage the inheritance properly, maintain it and, if necessary, carry out maintenance measures.

Another important duty of the co-heirs is the payment of the estate’s liabilities. The co-heirs are jointly liable for the decedent’s liabilities and must ensure that these are paid. In doing so, they must also take into account the taxes of the inheritance.

Your duties summarized:

Assumption of leases
Management duty
Payment of the estate liabilities

Prerequisite for apartment sale

In order to sell an apartment from a community of heirs, all heirs must therefore agree to the sale. A sale can only take place jointly and by mutual agreement. This requires close cooperation and agreement between the heirs to ensure smooth administration of the inheritance.

Heirs must agree on the sale of the apartment

However, in practice, it can often be difficult to agree on a joint sale. There are often emotions and memories associated with the property, which can make the issue sensitive for some heirs.

It is therefore not uncommon that individual heirs do not yet want to or cannot agree to a sale. In some cases, this can lead to disagreements and disputes regarding the inheritance. We will now take a closer look at the options available.

Dispute & conflict in the community of heirs

If the community of heirs disagrees on the sale of the apartment, it may be difficult to find an amicable solution. If all heirs refuse their consent to the sale, the property cannot be sold.

In this case, there are various ways in which the community of heirs can proceed.

Allow inheritance share to be paid out by co-heirs

One possibility is that a single co-heir pays off the other co-heirs and thus becomes the sole owner of the property. If a co-heir wishes to pay off the other co-heirs, the value of the property and the shares of the co-heirs must first be determined. An expert or surveyor can be consulted for this purpose. Then the share of each co-heir is calculated on the basis of the value of the property. The co-heir who wishes to pay out the other co-heirs must then pay out the corresponding share to the other co-heirs in order to acquire their shares in the property.

This is how the payment of an inheritance share works:

Determination of the real estate value
Calculation of the share of inheritance
Payment to co-heirs is made

Sell inheritance share to third party

However, it may happen that the other heirs do not agree or are unable to acquire the selling heir’s share. In this case, the selling heir can sell the share to a third party. The prerequisite for this is that the co-heirs have been granted a two-month right of first refusal and that the sale of the inherited share is only possible as a whole. Therefore, if you decide to sell the part of your inheritance, this refers not only to the apartment, but also to the rest of the inheritance.

Partition auction by district court

The partition auction in the community of heirs by the district court is usually the last resort. If the heirs do not agree, an heir can apply for a partition auction. The district court will then auction off the property in order to subsequently divide the proceeds among the co-heirs. However, this route is often associated with high costs and usually results in significantly lower proceeds than a private sale.

The partition auction at a glance:

Last resort in case of dispute
Settlement by local court
Division of the proceeds between the heirs
Disadvantage: High cost & low purchase price

Procedure: Sell inherited apartment

When several heirs have inherited an apartment and decide to sell it, they must follow certain steps in order to carry out the sale in a legally correct manner. This requires good planning and coordination within the community of heirs, as well as the involvement of an experienced notary to ensure that the sales process runs smoothly.

Here are the most important points in advance:

Consent to sale by entire community of heirs
Marketing of the property
Preparation of the purchase contract at the notary
Payment of the purchase price and settlement

Approval for sale

First, the community of heirs must agree that the apartment is to be sold. All heirs must agree to this. Once an agreement has been reached, a joint resolution must be passed that regulates all aspects of the sale, such as the sale price, the division of the proceeds among the heirs and who will carry out the sale.

Marketing of the property

After the community of heirs has decided to sell the apartment, the property must be offered on the market. For this purpose, a real estate agent can be hired to evaluate the apartment, prepare real estate exposés and take over the marketing. Alternatively, the heirs can sell the apartment themselves by placing advertisements or using online platforms.

Preparation of the purchase contract at the notary

Once a buyer has been found, a notary appointment must be arranged in which the purchase contract, conveyance and land register amendment are carried out. The purchase contract regulates all details of the sale, such as the purchase price, the time of transfer of ownership and all other conditions. The conveyance is the formal declaration by the seller that he is transferring ownership of the property to the buyer. The land register amendment is the registration of the buyer as the new owner of the apartment in the land register.

Payment of the purchase price and settlement

After all formalities have been completed, the buyer must pay the purchase price. As soon as the purchase price is received, the land register change is carried out and the buyer is registered as the new owner of the apartment.

Applying for a certificate of inheritance: This is what matters

In the course of the sales process, the heirs must provide proof that they own the inherited house. Often, a certificate of inheritance is required for this, as the deceased owner is still registered as the owner in the land register. The certificate of inheritance can be applied for at the probate court, but it is not necessary in every case. Alternatively, succession can also be proven by a European certificate of probate or a disposition of property upon death in accordance with Section 35 (1) GBO, provided this is contained in a public document (e.g. a notarial will) and the record of the opening of the disposition is submitted.

Land register registration in the event of a speedy sale

It is advisable for the heirs to have their ownership position entered in the land register before the sale, if necessary, as the land register becomes incorrect after the death of the testator. The heirs are generally obliged to correct the land register and enter them as the new owners. This can be particularly important if the sale takes place years later. In this case, the land register correction should be made as soon as possible and at the latest within two years of the inheritance. The process is usually free of charge within this period.

No transcription necessary in case of later sale

However, if the house sale takes place promptly after the death of the decedent, a land register adjustment is not normally required. In this case, ownership can be proven, for example, by presenting the certificate of inheritance and the buyer can be entered directly in the land register.

The most important things summarized:

Certificate of inheritance proves new ownership of the apartment
Alternative: Proof by European Certificate of Succession
Community of heirs must register as new owners
Exception: sale takes place shortly after the inheritance takes place

Conclusion: Sale of apartments of a community of heirs

In summary, a sale of an apartment by a community of heirs can be a complex process. For this reason, it is especially important that you and your co-heirs are familiar with your rights and obligations. After the community of heirs has agreed on the sale, the heirs must prove their ownership of the inherited apartment. A certificate of inheritance can be requested for this purpose, but there are also alternative means of proof such as the European certificate of inheritance or a disposition of property upon death. It may also make sense to correct the ownership position in the land register in order to avoid problems in the event of a subsequent sale.

Accepting an inheritance: House, debts – This is what you inherit

Laura — Mon, 25 Nov 2019 22:39:12 +0000

As soon as a property has been inherited, the question arises as to how it is to be used: do I occupy it myself or rent it out? What costs are incurred when accepting and disclaiming the inheritance? It must be clarified whether one is an heir or a legatee. An heir receives the assets as a whole in accordance with §1922 of the German Civil Code (BGB). In contrast to the classic inheritance, however, a legacy can only refer to one asset, e.g. the property. Legally, the legatee does not become a legal successor within the meaning of §1939 BGB.

Inherited house and debts

However, the heir is the legal successor and is therefore also liable for the debts of the deceased. With the acceptance of the inheritance, you may have to pay for existing real estate loans and tax debts with your own assets. In order to avert possible dangers, please approach us in good time. Only in very few cases can acceptance or disclaimer of an inheritance be reversed. We advise you on all questions and formalities concerning the inheritance. With the acceptance of the inheritance, an application for land register correction (§ 82 Land Register Code, GBO) must be made.

Split up

Inheritance to a community of heirs can be problematic. In this case, different parties (e.g. siblings) inherit the real estate assets. Different interests can make use and sale difficult. The sale of the property is generally not possible without a unanimous decision. In the course of the inheritance settlement, it is possible to divide the property and thus end the community of heirs. Agreements on division can be, for example, a cash payment to the first heir, a transfer of property shares to a second heir and the transfer of ownership of a property of the same value to a third heir. All solutions require an objective and realistic valuation of the property.

Own use or rental of the inheritance

Often there is a close personal connection to the parental home. But other objective criteria should be taken into account in the decision:

What is the condition of the property (renovation backlog)?
What conversion measures are necessary?
Is there any possibility of paying off a possible community of heirs?

Debt trap real estate inheritance

If the inherited property is in excellent condition, it can also be rented out. In many cases, however, the sums to be spent on renovation and modernisation are too high to generate a return on renting out the property. The yield calculation can still be relatively positive for an apartment building even with a renovation backlog. Since the sale of the inherited property is in many cases the only way to settle the inheritance dispute, the heirs often sell far below value.

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.

Inheritance tax

For many heirs, grief, joy and sorrow are closely linked. When you inherit a house, this process is always linked to a painful, emotional loss. After some time, a slight joy spreads and you realize that you are a homeowner. At the same time comes the worry that the tax office will claim inheritance tax from you and you will only be able to pay this amount if you sell the house. You have an exemption amount, below which there is generally no inheritance tax. The amount of this allowance is based on your degree of relationship to the deceased. Spouses can inherit real estate tax-free up to 500,000 euros, children up to 400,000 euros. To ensure that you do not pay speculation tax, you should consider whether you would like to live in the inherited house yourself if it was acquired less than 10 years ago. Everything about inheritance tax.

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.

Partition auction in communities of heirs

The partial auction is a special variant of the forced sale and is used when several persons have ownership of a thing. This often involves a plot of land or a property that is auctioned off and the proceeds divided among the owners. This situation often occurs in communities of heirs whose estates include real property or land. In a community of heirs, the heirs share ownership of the estate property. Accordingly, each of them can dispose of his or her own share, but of the entire property only in agreement with the others. Everything about the partition auction.

Bequeath debts

An inheritance does not primarily mean wealth and new possessions. An inheritance is often burdened with debts and means a great deal of responsibility for the heirs. After death, the heirs not only take over the assets, but also the rights and obligations of the deceased. If this includes debts, the heirs are also liable for them with their private assets. If an inheritance occurs, the inheritance should be carefully examined and checked for debts. Learn more about inheriting debts.

Heirloom

The estate can be disclaimed by any heir. This is particularly important if the inheritance is overindebted or if, for example, dilapidated real estate is part of the inheritance. However, a disclaimer requires certain forms and deadlines that must be observed. Precise information about the assets and debts of the testator is therefore extremely important. The right advice is the key to success in such a case. Everything about the inheritance.

Intestate succession

The law of succession comes into force if there is no will. This regulates who receives the assets of the deceased after a death and how this is done. Communities of heirs can be formed if there are several heirs and the estate passes into their possession. Communities of heirs are automatically formed after the death of the deceased if there are multiple heirs. These must then divide the estate among themselves and make joint decisions about inherited property, such as real estate. If you want to decide for yourself which relatives inherit which property, you should draw up a will and regulate everything in detail. Learn more about inheriting without a will.

Mandatory share of the inheritance

The compulsory portion is an important topic for disinherited relatives, because they still have certain claims to the inheritance. However, in order to claim this correctly and to comply with the formalities, a number of things must be observed. The share always depends on the other heirs and the amount of the estate. Read more about the compulsory portion of the inheritance now.

Allowances for inheritance

In order to protect the heirs from a large financial burden, different tax rates and allowances apply depending on the degree of relationship. These allowances include various things that do not have to be taxed, so that the heirs do not have to hand over the most as taxes, especially in the case of a large estate. Everything on the subject of tax allowances!

Community of heirs: communication, agreement

Laura — Tue, 15 Oct 2019 21:39:21 +0000

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 over the estate by seeking advice from estate agents and, with our support, finding the best way forward. 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 among all the co-heirs and thus avoid the problem of an inheritance dispute.

Estate settlement or house sale as a community of heirs?

For a profitable sale, it is important that you have already reached an agreement as a community of heirs before the sale of the property. The agreement can, which is of course the best case, be reached by mutual consent among all co-heirs. If an amicable agreement and joint decision is impossible, each heir has the right to demand an inheritance settlement and to have his or her share of the inheritance paid out. In the case of hardened fronts, this decision is usually accompanied by a partial auction and the corresponding financial loss for all co-heirs.

Community of heirs – Communicate openly and find agreement

We recommend that you decide together and, at best, sell. By selling the house, the community of heirs dissolves at the moment when the proceeds of the sale are divided between all the co-heirs and paid out. A community of heirs can sell without several owners in the land register and thus sell more quickly. For interested parties, the community of heirs is often an obstacle to decision-making, which can delay the sale of the house or lead to conditions below the market value.

Open communication in community of heirs excludes losses and risks!

As a civil law partnership, you face a number of tasks in a community of heirs. Once you have decided to sell, estate agents will act on your behalf and rule out the possibility of selling the inherited property for less than its value or only with great difficulty.

More information about inheritance:

Inheritance tax

Contested

Ideally, the heirs of a community of heirs would pay any debts swiftly from the estate and then dissolve the community of heirs by distributing the surplus according to shares. However, this is often not the reality. Disputes within the community of heirs often ensure that they remain unresolved for years after the inheritance. Each member of such a community of heirs has the right to demand dissolution at any time, even without good cause. Learn more about the dissolution of a community of heirs.

Partition auction

The most important questions on the subject of community of heirs:

Many issues often arise with joint heirs. From the correct tax return to the dissolution of the community of heirs, there are many points of contention that raise questions.

What is an undivided community of heirs?

An undivided community of heirs describes all heirs of a deceased. This comes into effect if there is more than one heir and thus a community of heirs is automatically formed. However, the undivided community of heirs loses its effect with the commencement of a community of heirs dispute. However, a community of heirs does not necessarily have to be divided.

What is the intestate succession?

If the deceased did not leave a will and the testamentary disposition is invalid, the law determines which persons are the heirs. The legal succession is based on certain specifications, such as the degree of relationship and the marital property status of the deceased.

What is meant by inheritance settlement?

If problems arise with the division of the inheritance in a community of heirs, each heir has the right to demand a division of the inheritance. The inheritance is then divided in equal parts. First the inherited money or similar securities and then the inherited objects, such as real estate and the like.

What is a fractional community?

A fractional ownership is understood to be several persons who jointly own a thing. The legal regulations find the fractional ownership in the paragraphs § 1008 to 1011 of the BGB.

How much does it cost to apply for a certificate of inheritance?

A certificate of inheritance can be applied for at the probate court. The costs for this depend on the value of the estate. For example, if the estate was worth €200,000, the certificate of inheritance costs €207.

When does the spouse inherit?

The spouse inherits only if there are no siblings, grandparents, parents or their siblings of the deceased. In all other cases, the legal right of inheritance of the surviving spouse is limited to a certain quota of the estate.

Can grandchildren inherit?

If the children of the deceased are alive, this excludes the grandchild from the legal succession (§ 1924 para. 2 BGB). Grandchildren can therefore only inherit from their grandparents if their own parents are deceased and have therefore disappeared from the succession.

What is a stratification contract?

A partition, partition agreement or partition contract is when the co-heirs of a community of heirs agree among themselves to exclude an heir from the community of heirs. This is usually compensated with a payment.

Certificate of inheritance: procedure & legal certainty

Laura — Sun, 15 Sep 2019 21:41:37 +0000

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 independently of the will and thus protect yourself when inheriting houses or apartments.

When is a certificate of inheritance necessary, what documents are needed?

You will be asked for a certificate of inheritance at the latest at the land registry. You will only become the legally recognised owner if you present the certificate of inheritance and have the changes made in the land register. A notarial will will not help you here either, as the certificate of inheritance is regarded as a mandatory document by the land registry.

To obtain a certificate of inheritance or, in the case of a community of heirs , a partial certificate of inheritance, go to the probate court with your identity card and the death certificate. The family record book or similar documents, the will or a contract of inheritance and an affidavit on all the information provided are also necessary. As a rule, the certificate of inheritance does not lose its validity. Only in the event of a will appearing later or false information being given when applying for a certificate of inheritance can the probate court withdraw the certificate of inheritance and thus invalidate it. Do you need a certificate of inheritance and do not know how best to proceed?

Our advice: As the fees for a certificate of inheritance depend on the value of the inheritance, please commission us in advance to determine the market value of the property. From a property value of 260,000 euros, a certificate of inheritance can cost as little as 1,000 euros without additional expenses and incidental costs.

Inheritance settlement

Properties inherited in community pose a particular difficulty when selling. For a step-by-step approach: selling your home. 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

Inheritance tax

Inheritance tax: the most important regulations

Laura — Sun, 15 Sep 2019 21:39:24 +0000

The amount depends on your degree of relationship to the deceased. Spouses can inherit real estate up to 500,000 euros, children up to 400,000 euros tax-free. To ensure that you also do not pay speculation tax, you should consider whether you would like to live in the inherited house yourself if it was acquired less than 10 years ago.

Calculate inheritance tax

The calculation of inheritance tax is best explained with an example. If you have inherited a property with a calculated market value of 300,000 euros from your parents, you generally do not pay inheritance tax. The same also applies if the house is transferred to you in the form of a gift during your parents’ lifetime. As your tax-free amount is 400,000 euros, you can inherit another 100,000 euros in cash or other assets in addition to the house and also not have to pay inheritance tax.

If you wish to occupy the inherited property yourself, there is generally no inheritance tax to pay. Based on the market value, which we will be happy to calculate for you even if you plan to use the property yourself, you will find out how much money you will save by using the house or apartment independently. In the case of a tax-free inheritance with a focus on the owner-occupation of the property, there is a special feature.

You can only inherit free of inheritance tax if it is a non-rented property with a living area of less than 200 square metres.