What unmarried couples need to consider when buying a house

When unmarried couples decide to buy a house together, a lot of questions quickly arise. Who should be listed on the property deed? How much money will each person contribute? And if we ever get divorced: Who gets the house?

The days when buying a house required a wedding are over. Today, love is often forged without an official union or marriage certificate. After all, a lifelong bond is forged in the heart, not on paper. However, unmarried couples should keep a few things in mind when purchasing a property together.

Who should be listed in the land register?

Especially for unmarried couples, it is crucial that both partners are registered as owners in the land register. The reason is simple: without a signed purchase agreement, one is not officially the owner, regardless of how much personal savings one has invested in the property.

What should be recorded in the land register?

Especially if the property financing is not equal or one partner has contributed significantly more equity, this should be recorded in the land register. This clearly documents which partner ultimately owns what share of the property.

The mortgage and the right to remain in the property should be arranged through a notary

Mortgage matters should be handled by experts. With the help of a notary, it's essential to establish in advance, through a contract, who will be responsible for the monthly loan repayments. It's also important to stipulate who may remain in the property and for how long. Acting proactively can save you from a potentially stressful and bitter custody battle later on. Should you need assistance finding a competent notary, your trusted real estate agent will be happy to help.

Partnership agreement

A partnership agreement is a good idea. Any specialist lawyer or notary can provide you with expert advice. Such an agreement is particularly recommended if the land is not registered in your name: Under German law, the owner always owns the property on it. If a couple cannot reach an agreement at all, a forced sale by auction is often the only remaining option. However, properties are rarely auctioned at a fair market price in such cases and often sell for significantly less than their actual value.

testament

If one partner dies, the surviving partner initially has no claim to their estate. The statutory rules of inheritance apply. Life partners may, under certain circumstances, receive nothing. Therefore, a notarized will or inheritance contract is important. This allows the testator to stipulate what should happen to the property upon their death.

If you have any questions on this topic or need assistance with your property purchase, please don't hesitate to contact us! We'd be happy to advise you.

Notes

For the sake of readability, this text uses the generic masculine form. Female and other gender identities are explicitly included where relevant to the statement.

Legal notice: This article does not constitute tax or legal advice for any specific case. Please consult a lawyer and/or tax advisor to clarify the facts of your individual situation.

Photo: © Wordliner/Image created with OpenAI's DALL·E.