The corona virus paralyzes almost all of public life and the world of work – but so far the real estate industry has hardly been affected. It is only important to know the new regulations and thus possible new procedures in order to be able to behave correctly during the Corona crisis.
Soothing for everyone: moving is still allowed. Even during the exit restriction, you can still move – only an unlimited number of helpful friends must not rush to support, the family, previous roommates or a moving company must be ordered. The latter are allowed to continue working and are even obliged to carry out an order once it has been accepted. The move does not fall into the water because of the corona virus.
Artisans and chimney sweeps also work during the crisis and also come home to their customers. Only longer waiting times should be taken into account, since, of course, employees in this branch also fail due to the virus. Otherwise there are hardly any restrictions.
Delays in payment are no longer grounds for termination
Anyone who owns and rents a property may have to adjust to the lack of rent payments for the time being: as part of the Federal Government’s Corona Aid Package, the “Law for Easier Access to Social Security and the Use and Protection of Social Service Providers Due to the Corona Virus” was enacted at the end of March. This means that payment arrears between rental payments between April 1 and June 30 of this year are not considered grounds for termination. Termination is only legal if the arrears have not been paid by mid-2022.
However, landlords can charge 4 percent interest on the arrears and should be aware that the tenant must first prove that the virus is the only way to pay. Such proof can be an affidavit, the application or guarantee of state aid, or proof of loss of earnings.
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The new law of the federal government includes a similar regulation for basic services, i.e. water, electricity and so on: If a contract for such a supply was concluded before March 8, the contributions do not have to be paid for the time being. A three-month deferral can also be decided on the repayment of real estate loans – provided this was completed before March 15 of this year. Very important: In all areas, contributions are only deferred, not completely suspended.
Buying and selling real estate in the Corona period
If you are sure that you will be able to pay loan installments in the next two and a half months, you can safely buy a house even during the crisis. Because: Although there are exit restrictions, the notaries remain open – only not more people than absolutely necessary may appear at the notary. It is still not possible to conclude contracts digitally.
What is not allowed are visits to the apartment in the conventional way. But there are alternatives. Brokers, for example, get in touch with the respective seller before contacting buyers and can make virtual home visits with the help of live videos. The advice of the seller can also be handled digitally by a broker. In this way, the broker gets an impression of the property and can provide the buyer with all important information and the suggested retail price. This can also take a tour of the property, for example via live video.
All in all: the corona virus changes the usual processes, but for the time being, real estate owners and buyers should not face any major difficulties.
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