Credit agreement between spouses
Hello,
I would like to take out a private loan from my wife to finance a rented apartment in accordance with the attached one-sided contract.
We are married under the legal marital property regime and my wife would transfer the loan to the sellers from a checking account only in her name.
A slightly higher amount (200,000 euros) was transferred from my wife's share of assets from our joint account to my wife's account two weeks before the planned disbursement. Can you please check for me whether the contract and the procedure are comparable to financing through a bank, or if I should expect difficulties with the tax office when deducting future interest payments.
The goal of this action is only a relatively short-term interim financing for a later follow-up financing with also a private loan from relatives. I definitely want to avoid financing the apartment with equity capital now.
Here is the draft contract also attached:
Loan agreement for the purchase of the inheritance shares of S. and A. XXXX
(Certified by Notary Assistant xxxxxxx at the Notary xxxxxx in Coburg
Document No. xxxxx signed by A. Mustermann on xx.xx.2011)
Between the borrower Mr. A. Mustermann, residing in xxxxxxxxx, hereinafter referred to as the borrower
and
the lender Mrs. B. Mustermann, residing in xxxxxxxxx, hereinafter referred to as the lender, the following contract is concluded:
§1 Loan terms:
The lender grants the borrower a loan for the notarized purchase of the two inheritance shares of the inheritance community S. and A. XXXX.
§2 Loan amount and disbursement:
The loan amount is 160,000 euros (one hundred and sixty thousand in words).
The loan will be disbursed in 2 installments:
1.) Partial amount 1 to S. XXX of 80,000 euros to his account. No. ___________ BLZ ___________
2.) Partial amount 2 to A. XXX of 80,000 euros to her account. No. ___________BLZ ___________
It is hereby agreed that the withdrawal dates of the partial amounts on the account of the lender determine the times of disbursement of the loan partial amounts for interest calculation.
The disbursement of the loan amounts will be made from the following account of the lender:
Bank: DKB Deutsche Kreditbank AG
Account holder: Mrs. B. Mustermann
Account No. ---------------
BLZ: 120 300 00
§3 Interest rate and interest adjustment:
The interest rate is 2% per year.
Interest payments are made annually on December 31st for the previous calendar year.
However, the first interest settlement will be no earlier than December 31, 2012.
If the loan is terminated by either party, the interest payment will be made no later than 8 weeks after the repayment amount is received in the account of the lender.
Either party can request a written adjustment of the interest rate on the 1st day of each month. If no agreement is reached, this contract can only be terminated in accordance with § 4.
Agreements regarding interest rate changes must be signed by both parties to the contract and attached to this contract.
§4 Termination, Loan repayment:
The notice period for the loan for both parties is 2 weeks at the end of a full calendar month and must be in writing. Repayment will be made to the lender's account.
§5 Default interest
If the borrower defaults on repayment, the interest rate for the period of default is 8% per year.
§6 Liability
The borrower is liable for interest and repayment from their entire assets.
Agreed upon:
Lender Borrower
B. Mustermann A. Mustermann
Thank you in advance
Kind regards
M.K.
