“Remedium” company put to the test: does it offer a solution to the dispute concerning inherited property?

When a property passes to multiple heirs, things usually get emotional. One wants to sell, the other doesn't. A start-up claims it can solve the problem.

Not all inheritances can be divided as easily as an account balance. Disputes often arise, especially with houses and apartments, as soon as several heirs are involved. Some people want to get rid of the property as quickly as possible, others prefer to renovate it and then rent it out. An impasse that could lead to court.

But it can also be simpler – at least that's what those responsible for the Frankfurt start-up Remedium claim. Your offer: You buy the share of the property from the person who still wishes to sell. In legal terms, this is called a divisional dispute.

Remedium announces a complete, worry-free package

“Whoever wants to sell gets their money, and those who want to keep the property remain co-owners and, in addition, have in us a professional partner who takes care of the important things,” explains Robert, co-founder of Remedium. Lindenstreich in an interview with t-online. This means: any renovations that may be necessary and any steps that need to be taken to rent the house or apartment. This is completely free for the remaining co-owner.

The start-up makes money by buying back the co-ownership share of the heir ready to sell it 15 to 25% below the market value. Added to this are income from common rentals. “From our point of view, this is a fair price. Other buyers demand a 50 to 60 percent reduction from the communities of heirs and do not retain the property in the long term. They go to the high court instance and impose a shared auction.” Lindenstreich said. “So the property is gone.”

What is a divisional auction?

Any co-heir can request a shared auction. The property is sold by force to the highest bidder. So it's kind of a mandatory auction. The community of heirs then shares the profits, which are generally significantly lower than those of an amicable sale on the open market.

Remedium definitively excludes a shared auction in the co-ownership contract with the remaining owner. This means that no one has to worry about losing inherited assets later. Unlike the controversial partial sale, in which seniors in particular sell part of their home to an investor, no monthly user fees are due.

“The so-called partial sale is something completely different from the partial sale that we offer,” explains Lindenstreich. “The partial buyer targets financially distressed seniors and owner-occupied properties. And on unethical terms.” With user fees of 6 to 7 percent per year, the sum paid by the partial buyer was quickly exhausted, “without me being able to devote a single cent to life wishes or an obstacle-free conversion.”

Robert Lindenstreich (Source: Remedium)

To the person

Robert Lindenstreich founded Remedium in 2023 with Florian Kania and is its managing partner. He previously worked for several years in investment banking, notably at Rothschild. The 29-year-old studied at WHU – Otto Beisheim School of Management, the University of Maryland and Paris Dauphine University.

The conditions agreed by the heirs with Remedium are governed by the purchase contract for the outgoing heir and the co-ownership contract for the remaining heir. The deal will only be concluded if everyone involved agrees to the regulations. Consumer advocates say the offer is definitely worth considering, but they temper expectations that are too high.

“Not suitable for everyone”

“It is basically a good thing when new paths are taken. This is an urgent need in the real estate market,” says Alexander Krolzik, head of the department of real estate financing, construction and purchase contracts at the Consumer Center from Hamburg. “It remains to be seen whether this really works. » This offer is not a panacea. “This does not suit everyone, because Remedium expects the property to be in a certain location. And even in a divorcing couple, where one wants to harm the other, it is unlikely to reach an agreement.”

Krolzik believes the price reduction is appropriate. “You have to be clear that you are getting less than if you sold freely. This is, so to speak, the price you have to pay for Remedium to help you because the co-heir does not want to sell.”

He advises examining contracts very carefully and, if in doubt, presenting them to an expert from the consumer advice center or a lawyer. However, it is questionable whether everything can really be organized in advance. It cannot be excluded that a blockage will occur later because there is no longer an agreement with the investor.

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