ᐅ Bought a house but have absolutely no knowledge about the subject.
Created on: 3 Jan 2019 11:28
A
Ageoffall
Hello everyone,
In May 2018, I bought my parents’ house because they were getting divorced, and the house was the only point of dispute. My father wanted to continue living there, and my mother wanted to be paid out. In the end, I agreed to buy the house.
The house has a market value of 250,000 and I paid my mother 115,000. My father retained a right of residence.
I took out a loan of 115,000 for the house and another loan of 50,000 to refinance old debts (15,000 — my lifestyle was quite extravagant), for renovations (30,000), and other costs (5,000).
My net monthly income is about 2,000. I repay both loans together with a total monthly payment of 710€.
After the purchase was finalized, I felt pretty much left on my own. I tried to inform myself about the essentials and, of course, studied all the contracts, which I understood for the most part.
However, after refinancing my old debts, I more or less just let things run without thinking much about it. Recently, the bank “kindly” reminded me (penalty interest) that I really should start using the renovation loan.
But I have no idea how to best coordinate a renovation. Last year, I contacted the general contractor who built the house. He came, took notes, but then stopped responding (that was in September 2018).
Whenever I ask my parents questions, I get nowhere. My mother doesn’t want anything to do with it, and my father always says, “No idea, you’ll have to wait.”
I also have no understanding of the utility bill accounting—when, how, and how often payments are deducted. I only know that payments are deducted and roughly how much, as this has already happened.
I am at a loss and don’t know how to proceed or what to do. I hope this post is not too confusing.
Thank you all.
Julian
In May 2018, I bought my parents’ house because they were getting divorced, and the house was the only point of dispute. My father wanted to continue living there, and my mother wanted to be paid out. In the end, I agreed to buy the house.
The house has a market value of 250,000 and I paid my mother 115,000. My father retained a right of residence.
I took out a loan of 115,000 for the house and another loan of 50,000 to refinance old debts (15,000 — my lifestyle was quite extravagant), for renovations (30,000), and other costs (5,000).
My net monthly income is about 2,000. I repay both loans together with a total monthly payment of 710€.
After the purchase was finalized, I felt pretty much left on my own. I tried to inform myself about the essentials and, of course, studied all the contracts, which I understood for the most part.
However, after refinancing my old debts, I more or less just let things run without thinking much about it. Recently, the bank “kindly” reminded me (penalty interest) that I really should start using the renovation loan.
But I have no idea how to best coordinate a renovation. Last year, I contacted the general contractor who built the house. He came, took notes, but then stopped responding (that was in September 2018).
Whenever I ask my parents questions, I get nowhere. My mother doesn’t want anything to do with it, and my father always says, “No idea, you’ll have to wait.”
I also have no understanding of the utility bill accounting—when, how, and how often payments are deducted. I only know that payments are deducted and roughly how much, as this has already happened.
I am at a loss and don’t know how to proceed or what to do. I hope this post is not too confusing.
Thank you all.
Julian
Do your parents like you?
I don’t really get that impression...
They’ve taken advantage of you quite a bit. Your mother wanted to be paid out, your father wanted to stay in the house. You would have inherited the property anyway if it had stayed in your parents’ ownership.
Now they’ve gone through their divorce at your expense: your mom got the money she demanded, your dad can continue living in the house without paying anything, and you paid 115,000 (one hundred fifteen thousand) in cash. Nice... And now you’re supposed to renovate the house. Honestly: your father set himself up very well in this situation! You paid off his wife, nothing changes for him, and now you’re also supposed to handle the renovations!
In return, your father has exempted himself from part of the additional costs (utilities/service charges). Although I do wonder how he expects to simply say: “You can now charge these and those costs to my son.” You have to agree to that!
Honestly, I would have a serious conversation with your father.
The role of the notary/lawyer would also be interesting (I’m currently having the "pleasure" of dealing with such a person myself), but that’s a separate matter.
Try to agree on a clear spatial division; if necessary, you can modify the lifelong right of residence in a bilateral agreement to clarify who lives where, who no longer has any claims, and who has which responsibilities.
For any renovation or clear separation of living areas, I would ask your father for financial support. This can’t be legally enforced based on the notary contract, but in the interest of maintaining a good relationship (especially since you’re living in the same house), it should be possible.
Additional costs should be clearly allocated according to who causes them; that has nothing whatsoever to do with the right of residence. If you’re paying the utilities/service charges now, make sure to settle that properly in the future. At least agree that your father transfers a monthly amount to you for his share.
I hope the house is worth all the effort you’ve put in.
I don’t really get that impression...
They’ve taken advantage of you quite a bit. Your mother wanted to be paid out, your father wanted to stay in the house. You would have inherited the property anyway if it had stayed in your parents’ ownership.
Now they’ve gone through their divorce at your expense: your mom got the money she demanded, your dad can continue living in the house without paying anything, and you paid 115,000 (one hundred fifteen thousand) in cash. Nice... And now you’re supposed to renovate the house. Honestly: your father set himself up very well in this situation! You paid off his wife, nothing changes for him, and now you’re also supposed to handle the renovations!
In return, your father has exempted himself from part of the additional costs (utilities/service charges). Although I do wonder how he expects to simply say: “You can now charge these and those costs to my son.” You have to agree to that!
Honestly, I would have a serious conversation with your father.
The role of the notary/lawyer would also be interesting (I’m currently having the "pleasure" of dealing with such a person myself), but that’s a separate matter.
Try to agree on a clear spatial division; if necessary, you can modify the lifelong right of residence in a bilateral agreement to clarify who lives where, who no longer has any claims, and who has which responsibilities.
For any renovation or clear separation of living areas, I would ask your father for financial support. This can’t be legally enforced based on the notary contract, but in the interest of maintaining a good relationship (especially since you’re living in the same house), it should be possible.
Additional costs should be clearly allocated according to who causes them; that has nothing whatsoever to do with the right of residence. If you’re paying the utilities/service charges now, make sure to settle that properly in the future. At least agree that your father transfers a monthly amount to you for his share.
I hope the house is worth all the effort you’ve put in.
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