How profitable is donating real estate

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

You were given an apartment? Or are you just thinking about what type of transaction to choose to transfer property to your children - donating real estate or inheriting it? In any case, it would be useful to learn about all the details of this method of transferring an apartment.

Giving real estate: is there a tax?

Most Russians believe that for some reason it is easier to accept real estate as a gift than to receive it by inheritance. In part they are right. For the contract, only title documents are needed here. No need to waste time obtaining other certificates, no cadastral number of the site is required. But there is still a real estate donation tax. Anyone who was given square meters must pay the state 13 percent of the cost of a house or apartment. It is excluded only in the case when the gift is accepted by close relatives of the former owner. For example, children or parents.

Required documents

It is worth noting that for donating real estate, the same certificates and documents are required as for its purchase and sale. Having only the right of ownership in hand, it is possible to conclude only a contract of the promise of donation. Documents are needed for all types of real estate, whether it is an apartment, a house or a land plot.

After the real estate donation agreement is signed, it is subject to mandatory state registration. In order to receive it, you will need the following documents:

• Donation agreement in three copies.
• A package of documents confirming the ownership of the property being donated.
• The passport of those who participate in the transaction - that is, the donee and the donor.
• Receipt confirming the payment of the state duty for the registration of the contract.
• Passport from BTI.

The contract will be officially registered within one month after you submit the necessary documents.

Promise to give

Giving real estate may not be documented at first. This is what the so-called donation promise agreement is for. In such a situation, a promise can be equated to a real estate donation agreement if it is documented and clearly expresses the intention to transfer property from one person to another.

It is important to emphasize that the promise is made in writing and also carried out by its state registration.

In the event that a gift promise is made, but the donee suddenly dies, his heirs cannot claim this property. Of course, if other conditions were not spelled out in the donation agreement. But if the donor dies, then his heirs fulfill his will, that is, they must givepromised real estate squares.

Can I cancel a donation?

Giving real estate suggests that it can be cancelled. But only through the court at the suit of the former owner, that is, the donor. This is possible if a sale is actually hidden under the donation agreement. Then the donee, who actually paid money for square meters, risks losing both finances and property. After all, donating real estate is a gratuitous transaction, and it is almost impossible to prove that you gave the money.