Hello everyone,
I am interested in the feasibility and practicality of the following approach:
A father sells a house to son 1, who then shortly afterwards sells the house to son 2.
What is the typical timeframe for this? That is, two notary appointments and two land registry entries.
And what costs would be involved?
The background is the creation of eligibility conditions for the child construction grant (Baukindergeld).
In my opinion, with just one child and a corresponding grant amount of 12,000.00 euros, the effort is not worth it, as the costs for the two transfers could almost reach the grant amount.
Additionally, there are various gift and inheritance law issues to consider if the sale is not conducted at market value.
I am interested in the feasibility and practicality of the following approach:
A father sells a house to son 1, who then shortly afterwards sells the house to son 2.
What is the typical timeframe for this? That is, two notary appointments and two land registry entries.
And what costs would be involved?
The background is the creation of eligibility conditions for the child construction grant (Baukindergeld).
In my opinion, with just one child and a corresponding grant amount of 12,000.00 euros, the effort is not worth it, as the costs for the two transfers could almost reach the grant amount.
Additionally, there are various gift and inheritance law issues to consider if the sale is not conducted at market value.
H
HilfeHilfe22 May 2019 09:06When selling within the family, the child construction allowance is not granted.
The KfW has identified and corrected such manipulations.
The KfW has identified and corrected such manipulations.
N
nordanney22 May 2019 10:34There are double notary and land registry fees. You could save on the purchase agreement. Real estate transfer tax is charged only once (no exemption for siblings, as they are not directly related in a straight line). You can check this online yourself.
However, the notary will base their invoice on the value of the property, not on the agreed purchase price.
HelpHilfe has already written something about the Building Code (BauKG).
However, the notary will base their invoice on the value of the property, not on the agreed purchase price.
HelpHilfe has already written something about the Building Code (BauKG).
Thanks for the feedback.
I don’t think the costs are worth it.
However, the information about the child construction grant is not correct.
The exclusion clearly applies only to sales in a direct line.
Brother to brother is not considered a direct line. This was also confirmed by the KfW over the phone.
As mentioned, this option probably won’t work as a "workaround" due to the high costs.
Unless you have so many children that the effort and costs become worthwhile again.
I don’t think the costs are worth it.
However, the information about the child construction grant is not correct.
The exclusion clearly applies only to sales in a direct line.
Brother to brother is not considered a direct line. This was also confirmed by the KfW over the phone.
As mentioned, this option probably won’t work as a "workaround" due to the high costs.
Unless you have so many children that the effort and costs become worthwhile again.