I want to buy my ex out of the flat we bought - I need some advice

26 posts in this topic

My ex (not married) and I broke up last year - victims of covid. We bought a flat together in 2018 and we are both on the contract and in the Grundbuch. 

We are on OK terms and he has moved out to his own rented flat. I'm currently paying 100% of the monthly mortgage payments. 

 

We would both like to remove him from the contract and I buy him out of the share he has contributed already to the overall mortgage (about 6%). I would then take over the rest of the mortgage and contract. 

 

I spoke to someone today and they mentioned that it's not possible to just pay him back the 6%, but I must pay him 50% of the property value. I just wanted to make sure that this is correct? If yes, who enforces this? We are doing this amicably and he doesn't want to take 50%. We understand that the Finanzamt will charge a sale tax, and that's fine if the tax is applied to the whole property amount, but we just want to make sure that we can work on him getting his 6% back.

 

Thanks! 

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well,legally there are two transactions involved: the piece of real estate, and the mortgage. 

As far as transferring ownership of the real estate, you can do that at any time, for any amount of money. 

For the mortgage you can make a contract with your "ex" where you agree to pay the entire mortgage alone - but your bank may (most likely) not want to let him "go". 

 

I was in a similar predicament with my Ex(-husband) long ago: we were 50% each owners in Grundbuch of a rental property, and signed a mortgage together. When we negotiated our (friendly and agreeable) divorce, we made a "Scheidungsvereinbarung". I agreed to paying him an amount of money (not 50% of the apartment's value, but a number that we both had come up with together) and he agreed to being taken off Grundbuch. We also agreed, that I would keep him clear and free of any obligations towards the mortgage (the word here was "im Innenverhältnis"). 

 

We thought, that we would then simply go to the bank and tell them to take my Ex off the mortgage. 

 

Bank just smiled and said "no". Why? They probably didn't think I would be able to pay the full amount out of my earnings alone.

 

This was never a problem. I still owe money on that apartment, it is still rented out, I was always easily able to pay. 

 

There was a slight "bump" in the road for me three years ago, when my ex passed. I thought I'd simply show the bank his "Sterbeurkunde", and have him taken off the mortgage. 

 

Bank said "No" again. This time they wanted me to get an "Erbschein" -  and have my daughter "inherit" her father's debt. No way! So I told the bank that my plan is to pay back the rest of that mortgage by 2022 - and that I could live until then with a dead man's name on all mail I get from this bank.

 

If you "trust" yourself to be able to pay for that mortgage  - just leave things as they are with the mortgage, and make a contract detailing the arrangement between yourself and your ex.

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6 minutes ago, fraufruit said:

You should probably talk to a lawyer before taking advice from random people on the internet. That's what I would do.

 

Well thanks for your useful comment. I thought the whole point of a forum was to get other people's perspective and learn about other experiences... 

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Just now, daolim said:

I thought the whole point of a forum was to get other people's perspective and learn about other experiences... 

 

You are correct.

 

And then get professional legal advice. :rolleyes:

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2 minutes ago, daolim said:

 

Well thanks for your useful comment. I thought the whole point of a forum was to get other people's perspective and learn about other experiences... 

But , after reading your post, you are asking for legal advice- which can only be given by a lawyer!

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1 minute ago, RedMidge said:

But , after reading your post, you are asking for legal advice- which can only be given by a lawyer!

 

Well that was not my intention. I wanted to see if anyone had been through something similar and could maybe verify or not if this 50% rule is true or not. 

Of course we are going to a lawyer in the end, but just wanted some preliminary information. 

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3 minutes ago, RedMidge said:

But , after reading your post, you are asking for legal advice- which can only be given by a lawyer!

I cant see any request for legal advice... 

 

Plus, as long as all parties agree... there shouldnt be any need for a lawyer... 

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I see it as a "process" request... I think only if there was any dispute, then a Notar and not a lawyer would be involved...   ( I hope)

 

It was that woman with the funny haircut that suggested "Legally"... 

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That's the funniest thing you've written, Spiderpig. Tis funny.

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From my experience, the bank made the loan with two people liable.  I can't say whether only one of you would have received the loan in the first place, only you and the bank know that.  People get 'divorced' all the time. I would go to the bank and talk with them about removing your partner.  They may refinance the mortgage in your name.  They may not.  

As for the settlement, if it's uncontested, you can do whatever you want.  Never heard of the 50% rule.  Technically, there is no sale taking place, just a refinance.

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11 hours ago, SpiderPig said:

Plus, as long as all parties agree... there shouldnt be any need for a lawyer... 

no, that's not true. 

Even in the case of my ex-husband and myself, where we totally agreed on everything, we used a lawyer and a notary to make sure the wording of our contract was "waterproof". When real estate is involved, you can't do anything without a notary anyways in Germany.

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24 minutes ago, karin_brenig said:

When real estate is involved, you can't do anything without a notary anyways in Germany.

That´s not correct. You can e. g. give the usufruct to someone else. Without a notary it won´t be entered into the "Grundbuch" though. But a claim to the proceeds from a property generated that way is still valid.

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1 hour ago, karin_brenig said:

no, that's not true. 

Even in the case of my ex-husband and myself, where we totally agreed on everything, we used a lawyer and a notary to make sure the wording of our contract was "waterproof". When real estate is involved, you can't do anything without a notary anyways in Germany.

 

Thank you. For sure we will get a notary and lawyer involved, I just really wanted to double-check on this 50% thing. My ex is greedy so I just want to be prepared. 

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57 minutes ago, daolim said:

 

Thank you. For sure we will get a notary and lawyer involved, I just really wanted to double-check on this 50% thing. My ex is greedy so I just want to be prepared. 

 

He's never going to get 50% cash in his pocket because he is equally liable for the current mortgage.  If you wanted to do everything by the book, you'd pay him out 50% and he would pay off half of the existing mortage with that and you would get a new mortgage in your name only.  However, as others have said, the bank may not be willing to give you a new mortgage based only on your income so you could do what you were planning on and what it seems that Karin has done, to pay him out his netto share and keep the mortgage as it is with some kind of agreement that you are taking it over.

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1 hour ago, daolim said:

 

Thank you. For sure we will get a notary and lawyer involved, I just really wanted to double-check on this 50% thing. My ex is greedy so I just want to be prepared. 

It may be worth adding a question to the effect that if you have to buy 50% then must your ex pay you back 44% of that due to you taking on the debt/mortgage. That would leave you both back in the position where you only actually pay the 6% you have agreed on. 
 

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