ᐅ Dividing a Plot for a Duplex: Best Way to Sell the Second Unit

Hello everyone,

I have been reading a bit here but haven’t made much progress on this topic yet.

We have a plot of land with an existing building in sight. There is no zoning plan for this plot, but in the neighborhood, semi-detached houses have been built on similar plots. So this should be possible as far as I can tell.

My question is how to best proceed if I want to build only half of a semi-detached house on half of the plot.

- How do I find a buyer for the other half of the project?
- When should I start looking (after the existing building has been demolished, once the semi-detached house plans are ready, or after the construction company has been chosen)?
- How does this affect the property transfer tax for the buyer of the second half? As far as I understand, does the buyer have to pay the tax on the entire house if I have already finalized everything beforehand?
- What should be considered in the contract, or where would you get information about this?

Thanks in advance!

BobTheBuilder schrieb:

My question is how to best approach this if I actually want to build only half of a semi-detached house on half of the plot.

What exactly is your plan? To complete both halves of the semi-detached house and sell them, or to sell half of the plot and have the partner build "their" house together with you at the same time?

I would sell half of the plot immediately and coordinate with the buyer. This way, each can build individually but complete the houses simultaneously as a "unified" building.

Hello nordanney,

thank you for your response. I would like to sell half of the plot. The question is how to coordinate with the buyer so that I can still build roughly the house I want in the end.

You would probably need to agree on certain points in advance (size, with or without basement, construction method, etc.) and such details should likely be included in the contract.

BobTheBuilder schrieb:

Thanks for your reply. I would like to sell half of the plot. The question is how to coordinate with the buyer so that I can still build roughly the house I want in the end.

I suppose certain points should be agreed on beforehand (size, with or without basement, construction method, etc.) and such things should probably also be included in the contract.

Exactly. You plan your house (basement yes/no, number of floors, roof type/slope, etc.) or have it planned. And in the sales contract for the second half, it is agreed that the buyer must align their half with your half according to the attached draft plans (or, if the buyer then decides not to build and wants to sell their plot again, they must impose these restrictions on all subsequent buyers as well). Then you simply build your half. The buyer follows your design and cannot just build a flat roof if you have a pitched roof, or a three-story building when yours is only one story. Size, location of the main entrance, etc. can be decided entirely by the buyer.

If the goal is a "mirror twin," meaning a semi-detached house with perfect central symmetry, this becomes more challenging. To truly achieve this, one would essentially have to act as a developer and sell half of the lot with a completed house, while bearing all the risks during construction.

To find out to what extent color, design, and size can be restricted in the sale, please consult a trusted notary.

Alternatively, it may be possible to sell half of the lot "for partitioning," meaning the property is not yet divided at the time of purchase, and, for example, a cost-sharing agreement is made.

Hm, okay, it is a bit more complicated than I feared.

In principle, the house does not have to be a mirrored twin. However, it would of course be easier and more cost-effective if we could build the house at the same time with the same construction company.

As I see it, I have two options:

1. I design my house and build it alone, then sell the second half with certain conditions. What I don’t like about this is that it doesn’t really take advantage of the benefits of a semi-detached house. For example, if I finish my house and then six months later the buyer of the other half starts building a basement. Or they might not build for two years because they lack the funds.

2. I act as the developer, which comes with considerable risk.

Am I missing something, or does anyone have any other ideas? Is there anyone here in the forum who has done something similar before?