Partial sell of land within one year of buying

3 posts in this topic

Hello All the experts

 

I am looking for the advice but not able to find one, hence creating the new thread.

I have bought a house this year on a big land and continued to stay over there. I have bought it after taking a mortgage loan from the bank

The neighbor approached and mentioned that he is interested to buy a part of the land. I am planning to accept the offer since with that money I can perform some renovations of the house.

Now the questions

  • After my house, there is around 4.5m vacant land, then the boundary with the neighbour starts and attaching the boundary they have their garage even though on my part there is nothing. Can I sell around 2 m from that 4.5 m? Is there a law that says I need to keep at least x m vacant land between my house and the boundary?
  • What is the tax implication? I heard if I stay in a house then there is no capital gain tax. But in this case it would be a partial sell of land.
  • What is the implication from a mortgage loan perspective? Do I need to inform them?

Thanks in advance for your help.

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The profit you make selling land with no house on it within 10 years of buying it (it's the contract dates that matter) is always taxable with your personal, variable income tax rate of up to 42%, see §23 (1) Nr. 1 Satz 1 EStG: https://www.gesetze-im-internet.de/estg/__23.html

It doesn't matter that before you sold it, it was the garden surrounding your house.

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I would seriously suggest to get a local property lawyer involved.

The initial consultation (around €100) will be very enlightening.

 

Taking the last question first - do you need to inform the lender?

Yes!

They have an entry in the Grundbuch for your land and property.

You wish to change this. Your mortgage contract may have to be paid off and 

renegotiated. You'll need a Vermessung to redraw the land in the Grundbuch (costs).

You'll need a  lawyer to set up the contract with the neighbour too.

 

If I understand you correctly, your house will be now 2,5m (4,5 - 2) from the

new border. Your local town hall will advise you if this is allowed.

Local authorities have local rules as to how near the border you can build.

These are often based on  height of your property and the angle of the roof !

 

If the neighbour sells their property in the future, the new owner needs to take

on the fact that your property is too close to the border (and that their garage) is

on your land (or border). 

This too needs to be in the contract - you may request a "Baulast" so that there

are no repercussions in the future.

 

I am neither a lawyer - nor a professional involved in property law!!

 

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