Selling and staying put - is that possible?
You would like to sell your housebut continue to live in it? Whether for financial reasons or to provide for old age, the sale with right of residence is becoming increasingly popular in Austria. But how exactly does it work? And what should you look out for?
What does "right of residence" actually mean?
A right of residence (also known as a "right to use the home") is a Right of use in rem in accordance with § 521 ABGB. It can be agreed for certain rooms or the entire house and is usually for life granted. It must entered in the land register to bind third parties.
Selling a house with a registered right of residence: what you need to know
The right of residence represents a restriction on use that applies to the Market value of the property. The selling price is usually lower as a result.
Tip: The more clearly the right of residence is defined (e.g. rooms, duration, ancillary cost regulations), the more transparent and fairer it is for both parties.
What models are available?
- Sale with lifelong right of residence: Often used by senior citizens as part of their retirement planning.
- Partial sale with right of residence: Only part of the property is sold.
- Right of resale: In combination with a temporary right of residence.
Tax aspects of the sale with right of residence
The Real estate income tax is also incurred here. However, the market value is reduced by the right of residence. The valuation is carried out in accordance with the Valuation Act, taking into account the age of the entitled person.
Risks and legal pitfalls
- Unclear agreements often lead to conflicts
- No legal right to maintenance by the buyer
- Sale is more difficult to place on the open market
Key takeaways - House sale with right of residence
- Lifelong right of residence must be entered in the land register
- Right of residence reduces the sales price, but also the tax
- Transparent agreements are essential
- Various models such as partial sale or right of resale possible
Conclusion: Selling without moving out - with clear rules
A house sale with right of residence offers financial freedom without having to move. A clear, notarized agreement and a realistic price are important. Get comprehensive advice before you take this step.
