Buying and selling an apartment between close relatives is a deal that many people know firsthand. Especially in Russia. The thing is that sometimes family members want to sell real estate to their loved ones. Such operations raise many questions. And we will stop on them today. We have to find out what features of buying and selling an apartment between relatives need to be taken into account. How legal are these transactions?
The concept of close relationship
To begin with, it is not clear to everyone who is a close relative. In Russian legislation there is a list of persons who are endowed with a similar title.
Who are they? For example:
- parents
- wife / husband;
- children
- grandparents.
All these categories of citizens are close relatives. It is about deals with them that will be discussed. All other real estate transactions do not have any features.
Legality
How legal is the purchase and sale of an apartment between close relatives (a sample agreement will be presented below)? Answering this question can be problematic. Indeed, sometimes such transactions involve not just the sale of property, but also some unspoken rules and blessings.
In this case, the transaction can be considered illegal. Especially if it was carried out under pressure or blackmail. But in general, real estate trading between close people is possible. This is a completely normal and legal phenomenon. It has a number of advantages and disadvantages.
Highlights
What features should all citizens take into account when solving a task? Buying and selling an apartment between close relatives requires compliance with certain rules. Without them, the deal will not be registered.
What to consider before completing a transaction:
- Buying and selling an apartment between spouses is possible only when the property belongs exclusively to one person. For example, donated or bought before marriage.
- Property acquired during a marriage shall be considered jointly acquired. You can sell your share to your spouse only after a divorce.
Perhaps these are all important points that can lead to some problems at the legislative level. Otherwise, any operations related to the transfer or trade of property between close relatives are completely legal. Homeowners are entitled to such operations.
Tolls
Nevertheless, we have to consider the mentioned operation from all sides. The thing is that from the ordinary transaction it is distinguished by the principle of collecting fees for registering the contract. What is this about?
When buying and selling an apartment between close relatives, the parties must pay a fee in certain amounts. It is calculated taking into account the degree of kinship. The closer it is, the less you will have to pay in the form of a fee.
About taxation
In reality, everything is much simpler than it seems. All of the features listed above distinguish buying and selling between close relatives from a regular home purchase (from third parties).
What can be said about taxation in the implementation of the task? Indeed, it is this nuance that interests many. In Russia, transactions with loved ones often have tax benefits and other bonuses.
Unfortunately, buying and selling an apartment between close relatives does not cancel the tax. That is, the seller will have to pay personal income tax in the amounts established by law. The operations under study are subject to the general rules of taxation.
What does it mean? If the property is owned by the seller for less than 3 years (when registering rights before 2016) or 5 years (if property rights arose after 2016 inclusive), then personal income tax must be paid 13% of the value of the “real estate” in excess of one million rubles.
In fact, everything is simple. If a relative has owned the property for more than 3 or 5 years, respectively, then when selling his apartment, a person is not required to pay any taxes.
About the nuances of prices
But that is not all! Some people try their best to avoid taxes and additional expenses, offering relatives transferring money in a kindred, unofficial way. Doing so is not recommended.
Why? Firstly, it is illegal. Secondly, the tax authorities may impose fines and penalties on the seller of real estate if the cost of the apartment is greatly underestimated. It should not be less than the cadastral price by more than 20%. Otherwise, you will have to pay a penalty fee.
The purchase and sale of an apartment between close relatives does not cancel or reduce the tax. This fact must be taken into account in every cell of society.
Briefly about the algorithm of actions
And how is the purchase and sale of an apartment between close relatives. The pros and cons of the operation will be presented later. First, we will try to understand the algorithm of actions for the legal registration of a transaction.
Briefly describe the process:
- To make an agreement. It is typical and has no features.
- Prepare a package of documents. A list of relevant papers will be presented later.
- Pay the operation fee in the established amounts.
- Sign and register an agreement with Rosreestr. This is best done in the presence of a notary public. But you can do without it.
- To issue the right of ownership, and also to receive a certificate confirming this fact.
After receiving the money for the operation, the seller will have to issue a receipt to the buyer, as well as pay the tax in the established amounts. Everything is exactly the same as when selling housing to third parties.
disadvantages
A little about what the pros and cons of the operation under study. After all, any deal with relatives implies both advantages and pitfalls. Let's start with the minuses of the operation. There are not many of them, but they can be extremely significant.
Buying and selling an apartment between close relatives has the following disadvantages:
- Property acquired in this way is defined as jointly acquired in a marriage. When divorced, it is divided according to general principles.
- It is impossible to control further actions of the new owner of the apartment. For example, children can easily evict their parents or make repairs in their new real estate. And all this is absolutely legal.
Perhaps these are all the shortcomings of the operation under study. That is why in practice donations are more often used. They exempt close relatives from taxation, and are also recognized as personal property of the donee.
pros
Buying and selling an apartment between close relatives also has its advantages. And, as practice shows, there are more of them.
- The seller after concluding the agreement will not be able to suddenly change his mind. After all, he received real money for the operation. In the case of donations, you can withdraw the contract.
- Third parties and other relatives will not be able to prove their inheritance rights after the seller’s death. After the sale, the property is completely transferred to the buyer.
- It is impossible to recognize the transaction as invalid in compliance with all the previously listed rules and to challenge it.
It is these features that the operation under study has. Nevertheless, lawyers are still arguing over the benefits of the last paragraph. Indeed, sometimes such a circumstance causes a lot of trouble and spoils relations in the family.
Shares and Whole
Now it’s clear what the pros and cons of buying and selling an apartment between close relatives. The return of property transferred in this way is not possible.Such a situation takes place only if citizens have violated the current legislation and forced each other from the operation. Or when faking documents. But this is an extremely rare scenario.
Please note that you can sell not only whole apartments, but also their shares. There are no restrictions on this subject. The main thing to remember is that when selling property in shared ownership, other owners of the apartment have the right to a priority purchase. If they refuse to redeem a share within a month, then you can put it up for sale and conclude an appropriate agreement with close relatives or third parties.
Minor children
A sample contract for the sale of an apartment between close relatives will be presented to our attention later. It is important to note some features of the transaction involving minors. But they apply to all legally relevant operations with children.
The thing is that when selling the child’s property (or his share) even to close relatives, it is mandatory to obtain permission from the “guardianship”. Otherwise, you can forget about the deal. Without appropriate permission, the Rosreestr will be denied registration.
You can buy an apartment for a child without the fate of guardianship authorities. In this case, most often parents purchase housing for themselves, and then either allocate a share to the minor, or draw up gifts for children.
Documents
What documents are needed to conduct the study operation? It's no secret that most relatives willingly trust each other. And therefore, the procedure for the sale of property cancels paperwork. You can do without various references and extracts from the BTI.
Accordingly, the contract of sale of the apartment between close relatives is ready for signing after the submission of the following papers:
- agreement;
- passports of the parties;
- documents on property rights to property;
- cadastral passport;
- marriage certificates.
When participating in a transaction, minors will need:
- permissions from guardianship authorities (not always);
- birth certificates;
- passport of one legal representative.
In some cases, citizens may be asked:
- the consent of the remaining owners to sell the share;
- spouse's consent to the transaction;
- refusal of other owners of the apartment to redeem a share
It is advisable to bring documents along with their copies. There is no need to certify the paper. The listed securities must be in each transaction with property.
On drawing up a contract
A few words to the regulation on drawing up a contract of sale of housing with the participation of close relatives. Citizens will have to consider all the rules and features of business correspondence. Otherwise, there are no special requirements for the contract.
It compulsorily prescribes the following information:
- description of the object;
- personal and contact details of the parties;
- property value;
- the procedure for transferring funds and the timing of payment of bills;
- features of termination and amendment of the contract.
You can either write the contract by hand, or print it. The main thing is that the parties personally sign the agreement and register this document. As already mentioned, it is better to contact a notary public to implement the task. An authorized person will not only be able to verify the validity of the transaction, but will also contribute to the drafting of a competent contract if problems arise with it.
After signing
As soon as an agreement to purchase a home from a close relative is signed, it is necessary to transfer funds for the operation. It is recommended to do this, again, in the presence of a notary. In exchange for money, the seller will issue a receipt on receipt of funds. She will protect relatives from unpleasant disputes.
After that, you can go to Rosreestr and re-register the rights to real estate. Most often, citizens are required to:
- old documents for "real estate";
- signed contract;
- passport;
- receipt of receipt of funds by the seller.
After 10 days, you can get a certificate of ownership. Since 2017, this document has been replaced by an extract from the Unified State Register. She is an analogue of evidence.
findings
We figured out how the purchase and sale of an apartment between close relatives is carried out. The contract form is presented to our attention.
In fact, the operation under study does not have any significant differences from the usual sale of housing. If you want to get rid of the shortcomings listed above, it is recommended to give preference to gifts. They are considered a more reliable form of transfer of property between relatives. Especially during the marriage.