Frankfurt The German financial regulator Bafin warns against partial sale models of real estate, which are often aimed at older people with the promise of financial freedom. “Partial sales are touted as quick, easy and safe for life. In fact, partial sales do not keep a lot of what the advertising promises, ”explained the Bafin on Friday.
In a partial sale, homeowners sell up to 50 percent of their property to a company. At the same time, they authorize the latter to sell the property later – at the latest in the event of death. The property can be lived in or rented out until the entire sale. A special right of use, usually a usufruct, is granted for this.
The previous owners have to pay a monthly user fee for use. Many disadvantages only became apparent later, for example when the house or apartment is actually sold to a third party, according to the Bafin. “A real estate partial sale is rarely the best solution for house or apartment owners,” says Executive Director Thorsten Pötzsch.
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