Partial Sale of a House in Austria. When Mr. and Mrs. Winter retired in 2025, one thing was certain: they wanted to continue living in their beloved single-family home near Salzburg. At the same time, they increasingly wanted more financial freedom. Selling the entire property was out of the question, and getting a loan was difficult. Their solution: selling a portion of their home. But was that really the best decision?
In this article, you'll learn what you absolutely must keep in mind when selling a portion of your business in 2026—and which drawbacks are often underestimated.
What is a partial sale of a house?
In a partial sale, you sell a share (usually 10–50 %) of your home to a company or investor. In return, you receive a one-time payment—but you remain the sole occupant of your home. The right of residence is secured in the land registry.
Important: This model is currently permitted only for single-family homes and townhouses. Condominiums are legally excluded.
Advantages: Stay flexible without having to move out
- Generating liquidity: Depending on the proportion of immediate capital inflows
- Continue living as usual: Lifelong right of residence
- No debt: Not a loan, but a sale
Selling Part of a House: The Most Common Drawbacks
1. Monthly usage fee
To retain the right to live in the property, you generally have to pay a monthly fee to the co-owner—essentially a „rent“ for the sold share.
2. Loss of flexibility upon sale or inheritance
A subsequent sale of the entire property is usually possible only with the consent of the co-owner. Your heirs must also abide by existing contracts.
3. Service Fees on Total Sales
Many providers charge a service fee upon the eventual sale of the entire lot (e.g., 5–7 % of the sale proceeds).
4. The responsibility remains with you
Maintenance, operating costs, and insurance are entirely your responsibility.
5. A portion of the appreciation is lost
If the value of the property increases, the co-owner also benefits.
Legal Framework in Austria (as of 2026)
- Purchase contract: Notarized and recorded in the land registry
- Right of residence or usufruct: Protecting Your Use
- Registration of Co-Ownership: The investor becomes a co-owner (max. 50 %)
- Right of Repurchase/Right of First Refusal: usually agreed upon in a contract
Tip: Have an independent real estate law expert review all the terms of the contract!
Checklist: When Does It Make Sense to Sell a Portion of the Business?
| Question | Yes | No |
|---|---|---|
| Do you need capital for general purposes (e.g., renovations, care)? | ☑️ | ⬜ |
| Would you like to continue living in the house? | ☑️ | ⬜ |
| Is a loan out of the question for you? | ☑️ | ⬜ |
| Are you willing to pay monthly usage fees? | ☑️ | ⬜ |
| Can you accept that part of your house belongs to someone else? | ☑️ | ⬜ |
Additional Risks from Real-World Practice
| Risk factor | Description |
|---|---|
| Lack of Transparency in Evaluation | Providers do not disclose how they determine the value |
| Communication Problems | Difficulty Reaching the Company After Signing the Contract |
| Psychological Stress | The feeling of no longer being the sole owner |
| Contract Terms | A long-term commitment can be detrimental when life changes occur |
Alternatives to a partial sale
- Resale with right of occupancy: Sale of the Entire Property with a Lifetime Right of Residence
- Life Annuity: Sale with Monthly Payments
- Bank loan: Provided that the applicant has a good credit history
Read also: our Articles on Selling a House
Checklist: Choosing a Provider
| Criterion | Done? |
|---|---|
| Transparent Valuation | ☑️ |
| Notarized Contract & Land Registry | ☑️ |
| Right of First Refusal/Right of First Purchase | ☑️ |
| No hidden costs | ☑️ |
| Independent Legal Advice | ☑️ |
Before Signing the Contract: These Details Must Be Clarified
A partial sale is not a traditional real estate transaction—it is a complex contract with long-term obligations. Anyone who accepts an offer without conducting a thorough review risks undesirable consequences.
Many homeowners rely on the information provided by companies offering to buy a share of their property—but their goal is to close the deal, not to protect you. That’s why it’s essential to have the contract reviewed by an independent real estate law expert.
The following points are particularly critical:
- Usage fee: How is it calculated? Is it adjusted regularly?
- Right of Repurchase: Are the deadlines realistic and the terms fair?
- Remediation Obligations: Who pays when the roof or heating system needs to be replaced?
- Market value: How was the price for your share of the house determined?
Quotes often lack specific information regarding the valuation or the calculation of usage fees. This lack of transparency can lead to significant disadvantages later on.
Checklist: Questions You Should Clarify Before Signing a Contract
| Point | Is that clear? |
|---|---|
| Is the property appraisal documented in a transparent manner? | ⬜ |
| Are the terms regarding the right of repurchase, including deadlines and costs, clearly defined? | ⬜ |
| Is the adjustment of the usage fee defined in the contract? | ⬜ |
| Are Rights and Responsibilities Regarding Renovation and Maintenance Clearly Defined? | ⬜ |
| At what point is a complete sale of the property permitted? | ⬜ |
| What happens in the event of inheritance or the need for long-term care? | ⬜ |
| Has the contract been reviewed by an independent attorney? | ⬜ |
Experience shows: This is how limited your flexibility will be after a partial sale
A partial sale promises liquidity—but many of those affected report that, after signing the contract, they were less flexible than they had expected.
Thus, it is often not possible without the co-buyer's consent:
- to carry out major renovations,
- individual rooms or apartments for rent,
- to take out a loan secured by a lien on the property,
- or to sell the remaining real estate interest on the open market.
Family changes—such as the need for care, a separation, or a planned move—can also become a burden if there is no clear exit strategy in place.
One particularly sensitive issue concerns inheritance: Your descendants must assume the contract and have little say in the existing terms. This makes it difficult to ensure an orderly transfer of assets.
Our tip: Read reviews with a critical eye—and don't be fooled by your first impression of an attractive offer.
You might also find this interesting: “What happens to the house when someone passes away?" – Help from oesterreich.gv.at
Checklist: Typical Restrictions Following a Partial Sale
| Situation | Is there a restriction? |
|---|---|
| Do-It-Yourself Home Renovation | Consent Required |
| Partial rental (e.g., a room) | Often not allowed |
| Sale of the remaining stake | Contractually limited |
| Use by Third Parties (e.g., nursing staff) | Consent Required |
| Borrowing with a Land Registry Entry | as a rule, no longer possible |
| Flexible Exit Strategies in the Event of Changes | often excluded |
Key Takeaways
- Partial Sale of Haus Österreich 2026: For houses only, not for apartments
- Advantages: Immediate liquidity, right to reside, no credit required
- Disadvantages: Usage Fee, Restrictions on Sale and Inheritance
- Carefully review contracts: Compare providers!
- Alternatives: Life Annuity, Full Sale with Right of Residence
Conclusion
A partial sale can be a sensible option—but it doesn't have to be. The key factors are the contract details, the provider's transparency, and your personal circumstances.
Kroy Real Estate is here to support you as an independent partner. Take advantage of our Free Initial Consultation and let us guide you on your personal journey.
FAQ: Partial Sale of the House of Austria 2026
Can I sell a portion of my house and continue to live there?
Yes, with a contractually guaranteed right to reside.
What is the difference between this and a life annuity?
Life annuity = monthly payment; partial sale = lump-sum payment + right of residence.
What happens when someone dies?
The heirs will assume the contract. Right-of-repurchase provisions must be exercised.
What are the long-term costs?
Usage fee + possible service fee on total sales.
Can I cancel the partial sale?
Only if a right of repurchase has been contractually agreed upon.
