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Old home sold, new home not yet finished – what now?

It is not only the current shortage of raw materials that is causing many builders to face repeated delays in the construction of their homes. But what can you do if you have already sold your old property and your new one is not ready to move into by the agreed date?

Depending on the situation, there are different ways to deal with this. Ideally, you should read this article before signing the purchase agreement for your old property. Then you will still have several options open to you.

If you are concerned that your new house will not be completed on time or you want to sell your old property before you actually plan to move out, you can come to an agreement with the new owners and have a temporary right of residence granted in the purchase agreement. To ensure that you are on the safe side with the contractual details and that the purchase agreement passes the notary's review, you should seek advice from a real estate professional.

Interim rental agreement

Instead of a right of residence, you can also agree on a temporary rental agreement with the new owners. Since this is independent of the purchase agreement, it can also be concluded after the purchase agreement has been signed. In such a case, however, you are not only in a weaker negotiating position, but also dependent on the plans of the new owner. This is because if you need to stay in your old property for longer at short notice, the new owner will probably already have made their own moving plans.

Who is the builder?

If you are faced with the problem at short notice that your new building will not be completed on time, it depends on whether you are the builder yourself or whether you have purchased a planned property from a developer. If you are the builder, you are usually responsible—including for the delay—and must find temporary accommodation yourself.

If, on the other hand, you have purchased a condominium that is part of a larger construction project, the developer is usually liable for the delay. However, this is subject to the condition that an exact move-in date was agreed in the purchase contract. If the apartment is not ready by the agreed date, the developer must either provide you with equivalent temporary accommodation or pay you compensation.

Compensation

This compensation usually corresponds to a comparable rent for the period during which you were unable to move into your new home. In addition, the costs for temporary accommodation that is not comparable (for example, a significantly smaller apartment) or a hotel room must be covered. Any additional costs incurred as a result of the delay must also be covered by the developer. The additional costs incurred here depend on the individual case. Typical examples are brokerage fees for finding temporary accommodation and the costs of the additional move.

Want to sell your house and be prepared for any eventuality? Contact us! We will be happy to advise you.

 

Not found what you were looking for? You can find more information here:

juraforum.de: Ready to move in

kfw.de: Domestic subsidies for private individuals

verbarucherzentrale.de: Subsidies for home ownership – energy-efficient, secure, and barrier-free

 

Notes

For reasons of better readability, the generic masculine form is used in this text. Female and other gender identities are expressly included insofar as this is necessary for the statement.

 

Legal notice: This article does not constitute tax or legal advice in individual cases. Please consult a lawyer and/or tax advisor to clarify the facts of your specific case.

 

Photo: © Manfred Antranias Zimmer/Pixabay.com

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