ᐅ Moving in before transfer of ownership / usufruct / rental agreement – disadvantages?
Created on: 31 Mar 2021 13:22
F
Frelili
Hello everyone,
I am completely new here and also new to the topic of homeownership and property, and I feel a bit like I’m in a vast, bottomless pit.
I would like to ask a first question here for orientation and try to keep it as brief but precise as possible. Thank you.
So:
The question:
Is it allowed (I think yes), but is it somehow disadvantageous if the child already moves into the apartment now, i.e., before the gift transfer and rental agreement, and lives there rent-free for three months?
Are there any disadvantages regarding the tax authorities, the gift, the property valuation for the gift contract, or anything else? Or does it not matter at all?
Thank you very much!
Good luck
I am completely new here and also new to the topic of homeownership and property, and I feel a bit like I’m in a vast, bottomless pit.
I would like to ask a first question here for orientation and try to keep it as brief but precise as possible. Thank you.
So:
- An apartment was purchased by the parents and has remained empty ever since, but it would basically be move-in ready immediately (more or less, there is a functioning bathroom and an old kitchen with old but working appliances).
- The apartment is therefore empty and unoccupied, never lived in by the parents, and never rented out.
- The apartment is supposed to be gifted to the child within the next three months, at the latest by June of the current year.
- The child (the recipient of the gift and thus the future owner) wants and is allowed/able to move into the apartment as a tenant.
- The rental agreement between the parents (the usufruct grantors) and the child (the future owner but also tenant) is planned to be signed only on the day/date of the gift transfer.
The question:
Is it allowed (I think yes), but is it somehow disadvantageous if the child already moves into the apartment now, i.e., before the gift transfer and rental agreement, and lives there rent-free for three months?
Are there any disadvantages regarding the tax authorities, the gift, the property valuation for the gift contract, or anything else? Or does it not matter at all?
Thank you very much!
Good luck
RomeoZwo schrieb:
I thought the child was supposed to move in before the ownership transfer?
... Yes. They should/want and are allowed to. But initially without rent and without a rental agreement. Just move in, register the residence, simply just live there for now. The child is returning from abroad and needs a place to stay. Why rent somewhere else when the apartment is there and empty... that’s the background.
Ysop*** schrieb:
...
... the parents do actually want to move into the apartment after one year. ...Yes, they do. Preferably in 1.5 or 2 years as well. But in the foreseeable future, yes. As a second home in a very rural area.N
nordanney31 Mar 2021 21:15Frischluft schrieb:
Yes, they do. Preferably in 1.5 or 2 years. But in the foreseeable future, yes. As a second home in a very rural area. Just asking plainly: What’s the point of all the fuss with gifting, usufruct, and all that surrounding stuff? It only creates unnecessary costs without adding any real value. Why are you doing this?
Oh. Is usufruct not a very common and frequently used procedure? It sounds like it’s something really unusual.
The ideas were:
Regards
The ideas were:
- Gift during lifetime (apparently many people do it this way)
- Usufruct, because the apartment is still intended to be used by the donor for about 1–3 years
- “Around that,” what exactly do you mean?
Regards
N
nordanney31 Mar 2021 22:01Frischluft schrieb:
Oh. Isn’t usufruct a very common and frequently used procedure? It reads as if it’s completely exotic. It actually is.
Frischluft schrieb:
The ideas were:
- Gift during lifetime (supposedly many people do it this way)
- Usufruct, because the apartment is intended to be used by the donor again in the next 1–3 years
Usufruct has absolutely nothing to do with use by the donor. You have no right to that. This is resolved with a right of residence.
Surrounding issues = free use, gift, rental, personal use, notary fees for everything, inability to use as collateral for the bank (if usufruct takes priority).
You still haven’t said why you really want to do this.
S
saralina8731 Mar 2021 22:09Frischluft schrieb:
Oh. Isn't usufruct a very common and frequently used procedure? It sounds now as if it were something completely unusual.
The ideas were:
- Gift during lifetime (supposedly many people do it this way)
- Usufruct, because the apartment might still be used by the donor for a horizon of 1-3 years
- "Around that," what exactly do you mean?
Regards A usufruct is more common in agriculture in the context of anticipated inheritance. In your case, I would have rather thought of something like a right of residence.