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You may want to use the value of your house for other plans while staying in familiar surroundings. In a sale with a rent-back, you sell the property and continue living there under a tenancy agreement. This changes both your financial position and the rules governing your home. Both aspects need to fit your plans.
First, clarify your own goal
Write down what matters to you in this arrangement. Do you want more money available, less responsibility for the house or a dependable prospect of staying in your home? These goals may call for different agreements.
Think beyond the next few months. Will the house still suit you if you later need less space or find stairs difficult? Do you want to stay permanently, or only postpone a move? The more specific your wishes, the better you can assess offers and draft agreements against them.
Consider the sale price and future housing costs together
A high sale price alone does not tell you whether a rent-back will fit your budget over the long term. First, ask for a breakdown of what would remain after repaying existing loans, paying any selling costs you bear and, where applicable, taxes. Whether these items apply and how much they amount to must be clarified for your case.
Compare that sum with your future expenses: rent, agreed service charges, energy, everyday living costs and a reserve. Ask specifically whether rent changes are planned and on what basis. Also check which repair or other work costs the draft agreement would leave with you.
Calculate several time periods. A monthly cost that initially seems affordable can consume a substantial part of the sale proceeds over many years. Use your actual income and expenses. This household budget is preparation for independent advice, not a forecast of returns.
Staying in your home requires a sound agreement
An open-ended tenancy agreement does not automatically give you an unbreakable right to stay for life. German law sets out conditions under which a landlord may give ordinary notice, including owner occupation in certain circumstances. Whether additional protection is possible and appropriate belongs in a legal review of the agreements. Source: section 573 BGB.
Nor can a fixed-term tenancy be made valid simply by entering an end date. The law requires specified reasons and written notice of them when the agreement is signed. A simple promise that you can stay for a certain number of years should therefore not replace a review of the actual agreement. Source: section 575 BGB.
State the protections you want clearly. Who should be allowed to live in the house? Which rooms, garden areas and outbuildings are included? What should happen if the property is sold again, a party to the agreement dies or you move out later? Ask which risks remain even with the proposed arrangements.
Distinguish a tenancy, a right of residence and usufruct
These terms describe different arrangements. A tenancy agreement governs your use of the property as a tenant. A right of residence under section 1093 BGB is a separate right to use a building or part of it as a home. Usufruct under section 1030 BGB may extend further and can include the right to derive benefits from the property. The details of each arrangement matter. Sources: section 1093 BGB and section 1030 BGB.
If a right is to be entered in the land register, ask in particular what priority it will have and what that means if the property is sold to satisfy a claim. Also ask whether you could let the property later, allow other people to move in or move away yourself. The label “right to live there” alone does not answer these questions.
Compare alternatives on the same basis
A sale with a rent-back may suit your goals. A sale with a later handover, a move to a smaller home or retaining ownership may suit them better. Compare each option using the same criteria: money available, ongoing costs, housing security, responsibility for the house and flexibility if circumstances change.
Record which information is still missing. An offer is hard to assess if it gives a purchase price but leaves the future rent or housing arrangement open. Obtain those details before deciding which direction to take.
Questions to ask before signing
- How much of the sale proceeds am I likely to have available in practice?
- What are the rent and other housing costs today, and what changes are planned?
- How will my wish to stay be protected in the agreements?
- What would happen if the property were sold again or the buyer ran into financial difficulties?
- What applies to repairs, alterations, care needs or a later move?
- Do the purchase agreement, tenancy agreement and any land-register rights fit together?
The agreement to sell a property must be notarized in Germany. Discuss the planned rent-back with the notary early and obtain independent advice on its tenancy and financial consequences as well. Verbal assurances should not be left alongside contradictory draft agreements. Source: section 311b(1) BGB.
If you would first like to discuss your property and your thoughts about selling it, you can contact Reher. This article explains questions about rent-back arrangements; it does not present a specific rent-back offer from Reher.
Sources
Official German legislation on Gesetze im Internet:
- Section 573 BGB: Ordinary notice by the landlord
- Section 575 BGB: Conditions for a fixed-term tenancy
- Section 1093 BGB: Right of residence
- Section 1030 BGB: Usufruct of property
- Section 311b BGB: Notarization of property sale agreements
Sources checked: 24 September 2026. This article provides general guidance and does not replace individual legal, tax or financial advice.