Is it better to sell before buying?

Bridging loan and transferring loan

Bridging loan

This solution is offered to people who buy before selling and who need the funds from the future sale of their property, in order to finance their new acquisition. In practice, the establishment advances a portion of the property’s value for sale (between 60 and 80%).

Transferring loan

Transferring the balance of the current loan, which is used to finance the property for sale can be granted by the bank to its customers, who wish to defer it on their new purchase.
It should be noted: new guarantees need to be undertaken; the guarantees taken during the initial loan are not automatically transferred to the new property.

What is the warranty against latent defects?

Omitting certain information can be dangerous and therefore can go against the seller, who must guarantee the buyer against hidden defects.

Under what conditions can the seller be attacked by the buyer?

The buyer can summon the guarantee against latent defects against the seller, as soon as the following three conditions are met:

• the defect is hidden, which means impossible to detect on the spot (example: crack on the facade concealed by ivy-clad);
• the defect exists before the sale, which the buyer needs to prove.
• the hidden defect makes the product unsuitable for normal use (example: lack of waterproofing related to a roofing problem).

It should be noted: The clauses of the sales contract generally provide what the individual didn’t know, in good faith, namely the defects in the property that he is selling and isn’t responsible.

Which rules must be respected to sell a rented property?

Sell at what price?

In principle, the sale price of an occupied property is subject to a certain discount, compared to its empty value (10% to 20%). Notaries, through their knowledge of the markets, have developed real estate expertise services, which allow them to offer reliable estimates, whether the property is free or occupied.

Does the tenant benefit from a right of first refusal?

At the end of the lease, the right of first refusal exists, when the owner wants to sell the property as empty.

Careful:

• the leave must be given in writing, at least 6 months before the end,
• the offered price must not be overvalued, for the sole purpose of making the tenant leave, otherwise the leave may be canceled by the courts.

During the lease, the right of first refusal can take place in two cases:

1. in the case of the building’s sale, the owner divides it co-ownership lots, in order to sell it on an apartment by apartment basis (so-called split sales).
2. in the case of the sale "in its entirety and in one shot" (so-called bulk sale) of a residential or mixed-use building, with more than five dwellings.