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Maria Vasileva

Question:

Hi Christian,
I am writing with a second question. We found an apartment at a good price in a good location, but offered for sale as a company.
So we need to buy the company with its asset.
The company is a real estate one which has never been active and has existed for 30 years. The owner explained to me that you only need to file a tax declaration every year.
What is the transaction type/costs in this case?
Is it possible to buy the company and its underlying asset with a mortgage loan?
Many thanks again for your help!

by Maria Vasileva on 09 May 2018
Christian Hasiba

This expert is currently inactive and not able to take new questions!

Answer:

Hello again Ms Vasileva,

The advantage of this kind of real estate companies is that you don't have to pay registration fees. There will be a fee for the transaction with your Notaire but it will be minor compared to the 12.5%.

There are several disadvantages:
- Since the Notaire only sells the company with the property in it but not the property properly speaking he will not do a series of verifications. You will have to be sure that what you are buying is legally in order. (Urbanisme, electricity, co-property, etc.).
- Since it is less usual to sell property under this form it is more difficult to find a buyer and you will get a lower sales price.
- If one day you decide to sell the property out of the real estate company you have to pay taxes on the price difference (selling price minus initial buying price 30 years ago). That could be a huge sum of money.

I hope this helped

Christian Hasiba
www.immoLiving.com
0478 20 95 52

by Christian Hasiba on 15 May 2018

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