Contact
Created with Sketch.
Founder Christian Dürr
Contact

Isar Estate

Founder: Dipl.-Kfm. Christian Dürr

Do you have a request? We are happy to be there for you and look forward to hearing from you.

+49 (0) 89 901 697 46

info@isarestate.de

    * Mandatory field

    Community of heirs for house and apartment

    Five people with different opinions at the table during a meeting

    Statistics show that around every second estate contains at least one property. The so-called community of heirs for the house or apartment then often plays a role, as this is usually formed automatically if there are several heirs. If the realization was not regulated in the will, all co-heirs dispose of the property until the community is dissolved and must manage it jointly.

    As the co-heirs are legally bound together as a community of heirs and a house cannot be divided up without further ado, complex conflict situations often arise. Does one of the heirs move into the house and pay off the others? Should the property be rented out or sold? These questions lead to differences of opinion and emotional discussions.

    Our estate agents have summarized the most important information to ensure that a community of heirs does not cause you any problems with a house.

    Table of contents

    Community of heirs for a property: What does the law say?

    Whenever a testator does not draw up a will that regulates the whereabouts of their real estate after their death, the statutory succession comes into force in this case. According to Section 2032 of the German Civil Code (BGB), all heirs form a community of heirs in which the assets and thus also the corresponding property are divided. Who exactly is an heir and who is entitled to how much can be found in Sections 1922 et seq. BGB.

    As the new owners, the persons concerned are entered in the land register "in community of heirs" for the house. This means that decisions regarding the property must be made in a certain way. If, for example, a co-heir is to take care of the heating or public safety obligations (proper administration), a majority decision is sufficient. Unanimous resolutions are required as soon as activities go beyond proper administration.

    The dissolution of a community of heirs for real estate

    In principle, the dissolution of a community of heirs is sought - despite the house or apartment. This is also known as dissolution. Until this step is taken, a co-heir can only dispose of their own share in the community of heirs and sell it, for example. However, they cannot sell the house in Munich on their own.

    It is not always possible to dissolve the community of heirs quickly. In some cases, heirs decide to rent out an apartment in Munich together, for example. This offers opportunities for stable income, but requires clear rules for management and profit distribution. Alternatively, a prompt sale can make sense in order to create liquidity and reduce the potential for disputes. Which option is the right one depends on market conditions, personal goals and the financial means of the heirs.

    Tip

    As a community of heirs, let us advise you on how you can harmonize the different interests of all co-heirs.

    What does it mean to manage a real estate inheritance?

    Until the final decision on the inheritance is made, the property remains joint property and must be managed. This effort is often underestimated by communities of heirs, especially in the case of a house.

    The most important tasks include

    • maintenance
    • the handling of tenancies
    • Insurances
    • the settlement of current costs

    The community of heirs for the house or apartment in question decides together who will take on these tasks. All agreements should be documented in order to avoid disputes later on. An estate agent and a professional property management company can take the pressure off you if you are renting out a property in Munich, for example.

    Tax aspects until the dissolution of the community of heirs with real estate

    In addition to legal issues, tax issues also play a role. As soon as a property is inherited, the tax office checks the inheritance tax. Depending on the degree of relationship, existing allowances can be considerable in some cases.

    If you rent out an apartment or house as a community of heirs, rental income is also subject to income tax. In another article, we explain who exactly has to pay tax on this rental income and can claim income-related expenses. Timely tax planning is recommended in any case.

    Estate agent hands over miniature house to potential buyer as a symbol for real estate purchase

    Selling an inherited house? The community of heirs has these options

    As already described, the community of heirs must unanimously decide how the estate of houses, apartments or land should be disposed of. The main alternatives are as follows:

    Sale of the property

    If you wish to sell a property from an estate, this is only possible if all co-heirs agree. However, it sometimes happens that a co-heir wants to avoid the dispute in the event of a house sale in the community of heirs. In this case, they can sell their share in accordance with Section 2033 BGB. However, this decision relates to the entire inheritance and not just the property in question! Whoever acquires the share becomes co-owner of the house. Other co-heirs have a statutory right of first refusal to buy the house or apartment with a notice period of two months in accordance with Section 2034 (1) BGB.

    Own use

    If the deceased leaves a rented property, the community of heirs enters into the existing rental agreement. It is not uncommon for a co-heir to want to move into the property themselves. However, this also requires the consent of all other persons in the community of heirs. If they accept the request, the existing tenancy agreement can be terminated for personal use - subject to the notice period, of course. However, if not all co-heirs agree to the request, the contract will continue with the current tenant without any changes.

    Purchase of the other co-ownership shares

    Another way in which you can regulate the retention of a property from a community of heirs is by taking over ownership shares: This involves one co-heir acquiring the property for their sole use. The other co-heirs receive their share. If the property was acquired via construction financing, the person in the community of heirs who wants to buy the house takes over the financing share from the bank.

    Division of the condominium

    Sometimes it makes sense to divide up a property inheritance. This can make sense for the community of heirs if the house can be divided into several self-contained residential units. In this case, co-heirs establish partial ownership and have a declaration of division notarized by a notary. The co-heirs are assigned ownership of the living space and the sole right to use and manage it.

    Note: If there is a community of heirs and one heir is already living in the house or apartment, everyone also decides together whether and under what conditions the co-heir can occupy the property in the future. In this case, it is possible for the co-heir using the property to pay compensation for use or a regular rent.

    What happens if the community of heirs cannot agree on the house?

    If the community of heirs cannot reach an agreement regarding the house or apartment, there is a risk of a so-called partition auction. This is applied for by the co-heirs wishing to sell at the competent local court. Your property will be auctioned off in a public procedure, with the bidder with the highest offer winning the auction. The proceeds are distributed among the co-heirs.

    Although this method provides clarity, it has many disadvantages. You should prevent a partition auction in your community of heirs, as the house in question is often auctioned below market value. In addition, a partition auction often takes a long time and involves considerable additional costs. Unanimous agreement and marketing after a professional property valuation in Munich is almost always the better solution!

    Three people in a bright, modern office environment at a round table consultation

    Mastering the dissolution of the community of heirs for real estate

    As the dissolution of a community of heirs is a legal requirement despite a property, co-heirs can request a so-called settlement at any time (Section 2042 BGB). This is the classic method for ending a community of heirs. As soon as all co-heirs agree on how to proceed, a settlement agreement is concluded, which sets out the details of the final distribution of the estate.

    In order to avoid heated disputes between the co-heirs, an experienced estate agent is often called in. They are familiar with the requirements that arise in connection with a community of heirs and a house sale and can provide comprehensive advice to the parties involved and intervene in the event of a dispute.

    How does the community of heirs benefit from an estate agent when selling a house?

    An estate agent often plays a key role for communities of heirs with a house. He not only acts as a market expert, but also as an active intermediary between the parties. An experienced real estate agent in Munich will help you develop objective solutions, especially if there are different ideas about selling, letting or owning the property.

    Typical tasks of a real estate agent for a community of heirs are

    • Preparation of a well-founded market value appraisal as a basis for fair compensation payments or a sale.
    • Support in discussions and decision-making to avoid disputes.
    • Development of a professional strategy to achieve the best possible sales price on the market.
    • Organization of land register excerpts, declarations of division or contract documents.
    • Support until handover - ensuring that the sale or letting is completed in a legally secure and transparent manner.

    Take advantage of this support in an emotionally stressful situation. At Isar Estate, we offer you structure, expertise and experience. For communities of heirs with a house in Munich, local cooperation is particularly important in order to realistically assess the value of a property and market it successfully.

    Black and white portrait of Christian Dürr, founder of Isar Estate.

    Selling an inherited house - Isar Estate helps communities of heirs

    We at Isar Estate are happy to assist you as a strong partner. Contact us if you are part of a community of heirs and need to decide on the realization of real estate assets.

    We provide you with comprehensive support!

    Dipl.-Kfm. Christian Dürr
    Founder Isar Estate

    Arrange a consultation

    FAQ about a community of heirs with a house

    How is the house of a community of heirs entered in the land register?

    After the inheritance, all co-heirs are entered in the land register as joint owners - with the addition "in community of heirs". Each person involved only owns their share, but not individual rooms or areas. This status only changes as a result of a division or partition.

    Can an heir sell their share of an inherited house?

    Yes, a co-heir can sell his or her inheritance share even if the other heirs do not agree. However, the other co-heirs have a statutory right of first refusal in accordance with Section 2034 BGB. This protects the community from third parties entering the community of heirs without consent.

    What running costs does a community of heirs have to bear for a property?

    In addition to any existing loan installments, a community of heirs with a house often incurs costs for insurance, property tax, maintenance and ancillary costs. These expenses must be borne proportionately by all co-heirs. Management can be regulated by majority vote, while an estate agent or property manager can ensure that costs are distributed fairly and documented transparently.

    How should communities of heirs behave towards existing tenants?

    The following applies here: Existing tenancies remain in place. The community of heirs enters into the contract for the house or apartment as the new landlord. Terminations are only possible in accordance with statutory regulations, for example due to personal use. Decisions such as rent increases or modernizations must be made jointly by all heirs.

    What deadlines apply to the dissolution of a community of heirs?

    The law does not prescribe a fixed deadline. However, each co-heir can request a so-called division at any time. This takes place either by mutual agreement by contract or - in the event of a dispute - by partition auction. An early agreement makes sense, especially in the case of a community of heirs with a house, in order to avoid lengthy and cost-intensive proceedings.

    How does a real estate agent help the community of heirs with the house or apartment?

    An experienced estate agent will value your property objectively, mediate between the parties and handle the professional marketing. They ensure that the sales process is transparent and efficient. Particularly in the case of high values such as in Munich, his market knowledge is also crucial in order to achieve the best possible price for the real estate inheritance.

    How can conflicts over a house in a community of heirs be avoided?

    Disputes in a community of heirs often arise due to differing interests and a lack of transparency. This is why regular consultations, written agreements and neutral moderation are particularly important. Anyone who finds themselves in a difficult family situation usually benefits greatly from a broker or mediator. They provide professional facts and "defuse" emotions in order to persuade the community of heirs to find a fair solution despite the house/flat.

    Disclaimer

    Despite careful research and checking of the sources, the author assumes no liability for the accuracy and completeness of the information presented. In case of unclear legal and tax questions, it is advisable to consult a lawyer and/or tax advisor for clarification.

    Author: Dipl.-Kfm. Christian Dürr