House sale to sister and brother

The following article deals with sibling property sales, particularly the frequent case of sibling property sales due to inheritance. Furthermore, the design of the sales price and the costs that the real estate sale brings with it are dealt with. In addition, special features relating to the real estate transfer tax are discussed.

the essentials in brief

The same rules apply to real estate sales between siblings as for real estate sales to third parties.

A real estate broker can help as a neutral advisor in the event of conflicts and pricing. Here you can have a broker from your region recommended.

The real estate transfer tax also applies to property sales between siblings.

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What distinguishes real estate sales between siblings?

The same rules apply to real estate sales among siblings as for real estate sales to a third party. The same documents are also required for property sales to siblings, which you can read here.

However, there is no need to look for an interested buyer when selling. In addition, the sister or brother is usually already familiar with the property to be sold. Quite often there are discrepancies in real estate sales among siblings, especially if the Real estate sales from an inheritance results.

What should be considered when selling real estate to siblings with a discount?

When selling real estate to siblings, the reason for the sale is usually an inheritance. For example, the property is inherited to the children when the parents die. Or if a parent dies, the spouse receives half of the property and the children the other half in equal parts, according to the legal succession.

One of the children would like to take over the house, often with one life-long right of residence of the remaining parent. However, all other siblings must be paid out accordingly. Especially in such familial cases there are often inconsistencies with regard to the value of the property and thus the amount of the sales price. The involvement of a legal advisor can help to solve the most difficult situation.

That too Consult a broker as a neutral and experienced third party is a great way. In addition, he can support brokers in applying for the necessary documents as well as in determining an appropriate price for the property.

What selling price when selling real estate to siblings?

The determination of the sales price should generally take into account the following three factors:

location the property and the connection to public transport

the Living and usable space the property

the structural condition the property and any renovation backlog

For a first price orientation you can use our price card as well as ours free online evaluation use. However, you should consult an expert like a broker for the final pricing.

Especially within the family, the profit from the property is not always in the foreground. However, in order to Suspicion of an unofficial gift or even to avoid a fake purchase, the sales price should be set as realistically as possible. If, for example, a spouse dies and the property is passed on to the remaining spouse in accordance with the legal succession and half to a quarter each to the two children, the purchase price can be set significantly lower if:

the life of the remaining parent or

In this case, the buyer cannot be favored.

What costs arise when selling to siblings?

Selling a property among siblings incurs costs for both the buyer and the seller. The buyer usually bears the notary fees. If a broker is involved in the purchase, these costs are usually shared between both siblings. However, a different agreement regarding the brokerage costs can also be made. There may also be one for the seller speculation tax and for the buyer the Real estate transfer tax.

There are special features when selling real estate to siblings?

For all relatives in a straight line, this applies when buying real estate Real estate tax exemption. However, these relatives only include children, grandchildren and spouses in a direct line. Siblings among themselves can do this However, the exemption does not apply and have to pay the full real estate transfer tax when purchasing real estate, which, depending on the federal state, can amount to up to 6.5 percent of the sales price.

However, the Federal Fiscal Court is currently dealing with file number II R 49/14 as to whether a property transfer tax should apply to siblings when purchasing property. Therefore, real estate acquisitions with regard to real estate transfer tax for siblings could also be subject to new regulations in the future. That is why it is recommended that you follow this test case append if you are currently selling real estate to siblings with real estate transfer tax.

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