Pitfalls and risks when buying an apartment under a gift agreement

A donation agreement transaction is considered a non-cancellable transaction, because in practice both the donation and purchase of a donated apartment are terminated and disputed in 5-10% of cases, which occurs in court.

Therefore, more often than not, the purchase of an apartment received under a gift agreement is considered as a reliable situation and does not pose a threat of losing the acquired property.

After all, if the gift transaction is difficult to challenge or can be terminated, then the new acquirer has no reason to worry.

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However, this is true only if the transaction is guaranteed to be carried out according to the rules specified by law, does not violate numerous requirements, and the donor subsequently does not change his decision.

Pitfalls and risks when buying an apartment under a gift agreement

In order to ensure that, when buying an apartment under a purchase and sale agreement from the seller, the new owner is confident in protection from the claims of some donor, is not recognized at some point as an unscrupulous buyer and does not lose the purchased property, it is necessary to review the risks during the purchase and sale transaction purchasing an apartment under a gift agreement, which means all possible pitfalls, violated legal requirements, terms of the gift transaction, and even personal relationships between the donor and the recipient over several years and family situations. What it actually means is to present and consider the legal and family relationships of the seller with his close relatives, as a result of which the buyer may be drawn into legal proceedings by third parties.

Invalidation of the contract

Most of the risks of purchasing an apartment under a gift agreement are associated precisely with the recognition of the gift agreement as invalid. When making a transaction under a gift agreement, according to Russian legislation, they are divided into voidable and void.

The significant difference is that a voidable gift transaction between previous owners is subject to recognition in court, while recognition of a transaction as void is possible outside of court proceedings.

Those who are buying or have already bought an apartment should know that the mere recognition of the transaction as invalid does not mean that the new owner will lose his property. In each case of such recognition, the situation should be considered individually and in more detail.

However, recognizing a transaction as invalid initiates the process of eliminating the consequences of recognizing such a transaction, which is only possible in court, and here the proceedings will directly affect the buyer.

Recognition of a transaction as invalid may primarily be based on:

  • Violation of the conditions for the prohibition of donation established by Article 575 of the Civil Code of the Russian Federation;
  • Violation of the conditions for limiting donations established by Article 576 of the Civil Code of the Russian Federation;

Pitfalls and risks when buying an apartment under a gift agreement

Violation of the conditions for the prohibition of donation established by Article 575 of the Civil Code of the Russian Federation means that:

  1. the donation could not be made if the ownership of the apartment belonged to minor citizens (children) and incapacitated persons. It is important that if a transaction with one of the two or both parties was completed by representatives under a power of attorney, this does not change the prohibition. Accordingly, their legal representatives also could not make a transaction on their behalf.
  2. the donee, and now the seller of the apartment, could not be at the time of the donation transaction an employee of any medical and educational organization in which the donor was observed/undergoing treatment or training, as well as an employee of a social service that provided the donor with paid or gratuitous services and other organizations a similar type in which the donor depended on the donee or on the organization itself.
  3. The receipt by the current seller of an apartment due to the fact that he held or filled a state or municipal position, or received an apartment as a gift also in connection with the performance of his official powers is also the reason for the cancellation of the gift transaction.
  4. The transaction could not be made between commercial entities and then in any way transferred to the seller who offers or sold the apartment under the purchase and sale agreement;
  5. The representative’s power of attorney at the time of the transaction was void;
  6. The transaction could not be completed under duress or the donor could not enter into the transaction while being deluded about any significant consequences for himself.

  How to draw up a deed of gift for a land plot

A complete list of violations of the conditions for limiting donations is specified in Article 576 of the Civil Code of the Russian Federation. The most common cases, from the point of view of judicial practice, are:

  • When in fact the donor did not have sole ownership, but the property was in joint ownership, but the transaction, in the absence of consent of the participants in such joint ownership, was completed contrary to the restriction and the participant in shared ownership found out about it after some time.
  • When the donated property was a credit obligation of the donor and the interests of third parties other than the donor and the donee were violated.

Pitfalls and risks when buying an apartment under a gift agreement

Termination of a gift transaction between the seller and the previous owner

The second group of situations that are risks of purchasing an apartment under a gift agreement are situations where the buyer may be drawn into proceedings between the seller of the apartment and its donor if the gift agreement is terminated.

This article talks about typical ways to resolve legal issues, but each case is individual. If you want to find out how to solve your particular problem, contact our consultant absolutely FREE!

For an apartment buyer, knowing the circumstances that may arise between the donor and the recipient is especially important.

After all, if the conditions for recognizing the invalidity of a transaction are related to formal grounds and to the identity of the donor and the donee and are checked by the body carrying out state registration of property rights, in the form of checking the documents required to be submitted for registration.

That termination of the transaction is the very pitfalls of the transaction, because termination depends on the text of the drawn up agreement and on the relationship between the donee and the donor, and the will of the latter.

The Civil Code of the Russian Federation provides four grounds for termination of a gift agreement by a donor:

  1. Having already registered the apartment in his name, the seller, that is, the donee, made an attempt on the life of the donor himself or his close relatives or intentionally caused any bodily harm to the donor.
  2. The donee treated the property donated to him in such a way that he created conditions for its irretrievable loss, although it represents great non-property value for the donor.
  3. If the deed of gift provides for and secures the right of the donor to return the apartment to sole ownership if he survives the donee.
  4. If, after completing the transaction, the financial, property, marital or health status of the donor deteriorates significantly after some time, then the donor also has the right to initiate termination of the contract and return the donated apartment.

  The cost of registering a deed of gift for an apartment

  • Pitfalls and risks when buying an apartment under a gift agreement
  • Doubts when buying an apartment are natural for any purchaser of property, especially after reading the above risks and, as shown, not all of them are regulated by the seller’s compliance with the law.
  • In a situation where the intention to purchase real estate is greater than the indicated risks, it is necessary to take all possible actions in order to protect yourself and the transaction and minimize possible losses. To do this, there is an algorithm for actions before signing a purchase agreement:
  • Step 1 - when making any transaction (and not just when purchasing after a gift), the buyer requests from Rosreestr an extended extract from the Unified State Register of Real Estate with a list of persons who were previously owners.
  • Step 2 – having studied the information received from the Unified State Register of Real Estate, the buyer asks the seller in more detail about his motives for parting with the property and possible intentions to purchase a new apartment.

Step 3 – if there are reasonable motives and arguments from the seller, the buyer restores the chronology of actions related to the receipt of the deed of gift by the seller. Such actions include: the maturation of the persons involved in the transaction, their death, their recognition as incompetent, and the claims of third parties to the seller’s property rights.

Important! The time period for recognizing a transaction as invalid or void varies from one year to three years from the moment the transaction was completed or from the moment when the person whose rights were violated learns of the violation of his rights. This gives the buyer the opportunity to assess the possible further development of events in the emergence of such claims or the chances of a negative outcome for the buyer.

Step 4 – the buyer asks the seller for information on questions that have arisen, about the apartment or the transaction. Including getting to know the donor, in order to understand what is wrong with his situation, and whether, at the time of sale of the apartment to the donee, he has grounds and intentions for refusing the donation or claims to the donee.

Important! It is better to obtain such information directly from the previous owner of the apartment and best of all during a personal meeting, and not by telephone or any other communication.

Step 5 - having analyzed the information received and at this point, using it, having assessed all the risks of purchasing an apartment under a gift agreement, the buyer once again proceeds to drawing up a purchase agreement with the obligations and guarantees of the seller to return the money or compensate for the damage caused to the buyer. The contract should be entrusted to civil law lawyers.

In the course of considering the risks of buying an apartment under a gift agreement, it becomes clear how buying a home after a gift differs from a standard purchase transaction, but if the specified actions are followed, supported by certificates, certificates and requests to confirm that the buyer has made efforts not to be recognized as dishonest, there is a possibility the loss of purchased real estate is minimal.

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Buying an apartment through a gift: risks of a gift agreement

The apartment gift agreement contains risks for the buyer who decides to purchase housing received on the basis of a deed of gift (as a gift). Let's consider what dangers and pitfalls await the unlucky buyer of square meters.

Using the donation procedure when purchasing a home is risky, and in this case both parties to the transaction have an insufficient level of protection.

Practice shows that even in court it turns out to be impossible to challenge the transaction or its individual decisions in the future.

First of all, the risks fall on the seller, but the acquirer may also encounter certain difficulties.

Risks of purchasing an apartment under a gift agreement

Pitfalls and risks when buying an apartment under a gift agreement

Which options cause problems:

  1. A donation made between persons who are not in a close family relationship requires the recipient to pay a tax in the amount of 13% of the value of the property received, and it is impossible to transfer this claim to the seller. Compared to traditional sales contracts, deeds of gift have a significantly lower degree of protection from the possibility of successful challenge in court ok.
  2. Fraudsters deliberately include clauses in the contract that allow the document to be contested in court in the future. This is especially dangerous in moments when the parties refuse notarization.
  3. Do not forget that in some cases it is impossible to formalize a gift. For example, if there are several owners, approval from each of them is required, while purchase and sale require a certain maneuver for action. Restrictions are placed on gift procedures and on certain categories of citizens, including minors, government employees, health care and education workers.

Risks of deed of gift

Pitfalls and risks when buying an apartment under a gift agreement

Difficulties may also arise in a precedent when the seller of an apartment turns out to be a person who received it as a gift:

  1. Buying with a tenant. It is legally permitted to provide a property as a gift while preserving the registration and residence rights of the donor. If in the future the new owner resells the living space, the registered person will remain in the documents, and there is no way to get rid of him according to the law.
  2. Litigation. Often, the transfer of a gift is considered an alternative to a will, while people who are left without an inheritance seek to challenge this decision through the court. If the court satisfies it, for example, the incompetence of a person is proven at the time of drawing up the papers, the subsequent purchase and sale transaction will be automatically canceled as having no legal basis.
  3. Unfair actions. When it is established that the buyer has information about the illegal actions of the recipient in the process of obtaining real estate, the purchase may be declared invalid. Bad faith can be determined when the same property is repeatedly transferred at prices significantly below market prices, or when the acquirer fails to check legal documents indicating the presence of other bidders.
  4. Acquisition against the will of the owner. This category includes precedents where the transfer was completed fraudulently, misleading the current owner, or subject to the signing of an agreement under the threat of physical violence, reprisals against relatives, and so on. If such circumstances are clarified within the framework of legal proceedings, the transaction will be declared invalid, and the acquirer will not only lose the acquired asset, but will also not be able to demand the return of the money paid from the other party, since according to all documents and registers the transfer of rights did not imply a remunerative nature.
Read also:  Registration of an apartment purchase and sale transaction through a notary in 2023: documents, who pays - is a notary required, is it necessary to have the apartment purchase and sale agreement certified by a notary

Thus, acquisitions issued as a gift carry a lot of threats, and it is worth weighing the advisability of using such a scheme each time. You have learned that purchasing an apartment received under a gift agreement has risks and your rights as a new owner may be violated due to a mistake or fraudsters. Be careful!

Pitfalls and risks when buying an apartment under a gift agreement

Buying an apartment under a gift agreement, pitfalls

Pitfalls and risks when buying an apartment under a gift agreement

You can view and download here: [Sample apartment donation agreement].

Advantages of transferring ownership of an apartment under a gift agreement

A gift agreement has several significant advantages over a purchase and sale agreement or the drafting of a will. Advantages of a gift agreement:

  1. A donation acquires legal character and legal status only when the transfer of residential premises occurs, and not at the time of registration with the Federal Reserve System, as a purchase and sale agreement. In other words, the recipient becomes the owner of the apartment from the moment the donation document is signed.
  2. In some controversial situations, a gift agreement may be a solution. For example, if the apartment is in shared ownership, and one of the owners does not want to sell his share. Then the remaining owners can transfer the property to another person through the donation procedure.
  3. Property that is donated cannot be the common property of the spouses.

Disadvantages of transferring ownership of an apartment under a gift agreement

Pitfalls when buying an apartment under a gift agreement can become a significant condition for refusing such a transaction. The point is that giving has more than just benefits. Disadvantages of a gift agreement:

  1. Gratuitousness of the gift agreement.

Is it possible to buy donated housing?

It is worth considering that buying a donated apartment involves certain risks. The fact is that the donor can revoke the deed of gift through the court, an unwitting victim of which may be the person who purchased the living space from the donee. But such deals are also happening.

For this you will need the following documents:

  • Contract of sale of an apartment.
  • A document confirming ownership of the object of the transaction.

In this case, the donee receives this document when the transaction is registered in Rosreestr.

  • Permission from the guardianship council in the event that a minor child or an incapacitated person is registered in the apartment.
  • It is very easy to implement a deal. To do this you need to do the following:

    1. Collect all the necessary documents listed above.
    2. Register the agreement with the cadastral chamber.

    Useful video

    • You can find out the possible risks when buying real estate in the video below: Buying an apartment under a gift agreement has a lot of pitfalls, but sometimes this becomes the only available option.
    • In particular, employees of this body will need to provide a donation agreement, a receipt for payment of the state duty, a cadastral passport for the specified housing and a number of additional papers.
    • A corresponding certificate is provided as a document confirming ownership rights, and only after the completion of the registration procedures can the recipient be called the full owner of the property, who can independently dispose of the property at his own discretion, that is, donate it, exchange it or sell it.

    Many believe that more than 3 years must pass from the moment of donation for the recipient to have the opportunity to sell his own property, but in practice this is far from true, since there are no such requirements in the legislation. It is not at all necessary to wait a certain period of time to sell newly acquired property, so you can register its sale immediately after the certificate of ownership has been issued.

    The only caveat in connection with which it is recommended not to sell the specified property in the first three years is that in this case you will have to pay additional taxes, which will depend on the value of the property being sold.

    The Civil Code of the Russian Federation provides four grounds for termination of a gift agreement by a donor:

    1. Having already registered the apartment in his name, the seller, that is, the donee, made an attempt on the life of the donor himself or his close relatives or intentionally caused any bodily harm to the donor.
    2. The donee treated the property donated to him in such a way that he created conditions for its irretrievable loss, although it represents great non-property value for the donor.
    3. If the deed of gift provides for and secures the right of the donor to return the apartment to sole ownership if he survives the donee.
    4. If, after completing the transaction, the financial, property, marital or health status of the donor deteriorates significantly after some time, then the donor also has the right to initiate termination of the contract and return the donated apartment.

    Doubts when buying an apartment are natural for any purchaser of property, especially after reading the above risks and, as shown, not all of them are regulated by the seller’s compliance with the law.

    In a situation where the intention to purchase real estate is greater than the indicated risks, it is necessary to take all possible actions in order to protect yourself and the transaction and minimize possible losses.

    Buying an apartment after a gift agreement, pitfalls

    The best option is also that on the date of application to the Registration Chamber the current owner of the apartment is also deregistered, but in this case, as an option, the purchase and sale agreement may indicate the owner’s obligation to deregister before the deadline established by the contract .

    In addition, it is also advisable that the owner also provide you with an extract from the house register to make sure that other than the owner and, possibly, the owner’s spouse, no other persons are registered in the apartment.

    I also recommend finding out on what basis the ownership of the apartment was acquired by the person who donated the apartment to the current owner.

    This must be done in order to find out whether the apartment was previously privatized and whether a person who refused to take part in privatization is registered in the apartment.

    If the apartment has actually been privatized and a person is registered in the apartment who refused to take part in the privatization, then keep in mind that eviction of this person (without his consent) is impossible.

    One more aspect - also require that you be provided with a document confirming the absence of debt for utility services.

    Apartment purchased under a gift agreement, pitfalls

    Purchasing an apartment received under a gift agreement

    also a similar situation: 5 years have passed since the registration of the gift agreement, now the donor has changed his mind and wants to return everything back.

    Is it possible to terminate a gift agreement, the donor gave a power of attorney through a notary, per person, cat. signed a gift agreement for him on his behalf, and registered it with the registry authority, i.e.

    That is, a third person acted for him under a power of attorney; he himself personally gave and signed the power of attorney.

    Conditions for purchasing an apartment under a gift agreement

    After the donation transaction is finally registered, the donee will also have the opportunity to dispose of the property provided to him, including the possibility of selling his own property in the standard way.

    The purchase of donated property should always begin with an extremely detailed check of all documents. In particular, the buyer must conduct a thorough check of the passports of each person who takes part in the contract preparation process.

    Risks of a gift agreement

    The contract can be terminated in court on the grounds provided for in Article 168 (Invalidity of a transaction that does not comply with the law or other legal acts), Art.

    170 (Invalidity of imaginary and feigned transactions), Art. 171 (Invalidity of a transaction made by a citizen declared incompetent), Art.

    177 (Invalidity of a transaction made by a citizen incapable of understanding the meaning of his actions or managing them), Art.

    Important

    Since the apartment was gifted to the current owner, even though the owner is married, this apartment is his property, and not the joint property of the owner and his spouse. Consequently, the consent of the owner’s spouse for the apartment to be sold (or otherwise alienated) is not required.

    That is, the maximum that the owner’s spouse “can claim” is the right to live in the apartment (if he has registration in the apartment).

    Now regarding children. Since the children are not the owners and are not registered in the apartment, there should be no difficulties on this side, since in this case the consent of the guardianship and trusteeship authority for the sale of the apartment is not required.

    1. The only thing I would like to draw your attention to is whether the owner’s spouse has registration of the apartment.
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    4. However, this is true only if the transaction is guaranteed to be carried out according to the rules specified by law, does not violate numerous requirements, and the donor subsequently does not change his decision.

    If there is registration, then demand that on the date of transfer of the gift agreement to the Registration Chamber, the owner’s spouse be removed from the registration register, since otherwise, if the owner’s spouse refuses to “register” after you become the owner of the apartment, you will have to go to court with a claim to recognize the spouse of the former owner of the apartment as having lost the right to use the apartment.

    In order to ensure that, when buying an apartment under a purchase and sale agreement from the seller, the new owner is confident in protection from the claims of some donor, is not recognized at some point as an unscrupulous buyer and does not lose the purchased property, it is necessary to review the risks during the purchase and sale transaction purchasing an apartment under a gift agreement, which means all possible pitfalls, violated legal requirements, terms of the gift transaction, and even personal relationships between the donor and the recipient over several years and family situations. What it actually means is to present and consider the legal and family relationships of the seller with his close relatives, as a result of which the buyer may be drawn into legal proceedings by third parties.

    Invalidation of the contract

    Most of the risks of purchasing an apartment under a gift agreement are associated precisely with the recognition of the gift agreement as invalid. When making a transaction under a gift agreement, according to Russian legislation, they are divided into voidable and void.

    Read also:  Statement of claim for recognition as having accepted an inheritance

    In some situations, such an agreement may be the best option, and in some cases, another form of legal agreement should be used.

    • purchase and sale transaction is more acceptable than a gift for those people who are not related, since it minimizes possible conflict situations and makes it possible to challenge the agreement, if necessary, in court.
    • It is best to draw up a deed of gift between relatives. This will help you save money and avoid some difficulties with registration.
    • A testamentary act is also an option for transferring property between citizens, but after the death of the owner. This method is chosen when the owner of the property wishes to transfer it to his successors only after death.

    You also cannot give apartments to government employees.

    • Commercial organizations cannot give each other real estate.

    Fraudsters can take advantage of any of these situations.

    Challenging a gift transaction

    In addition to direct prohibitions on the basis of which such an agreement can be declared invalid, there are many other options in which the transaction can be challenged in court or even simply canceled by the donor:

    • If the donee, from the donor's point of view, mistreats his gift, he can take away the object of the gift.
    • If a transaction was made using a power of attorney, the latter may be declared invalid, which automatically entails the recognition of all transactions made using this power of attorney as invalid. By the way, sometimes scammers generally work with initially expired or outright fake powers of attorney.
    • The donor may declare that at the time of donation of the apartment he was in an insane state, this will also be the reason for termination of the transaction.
    • If the property has several owners, then each of them must agree to the transfer of this apartment as a gift, otherwise the transaction is considered invalid.

    There are many other options in which different persons can claim that the transfer of an apartment as a gift violates their rights (for example, the heirs of this very apartment).

    True, it is difficult to challenge a gift agreement. “During the life of the donor, if he is not limited in legal capacity, the relatives’ attempt to go to court will most likely not be successful - their application is unlikely to be accepted. Unless they somehow force the donor himself to go to court with a claim to declare the transaction invalid.

    However, even in this case, success for the relatives is not guaranteed, since at the court hearing they will have to provide strong evidence that during the conclusion of the gift agreement, serious violations were committed that take the transaction beyond the legal framework” - that is, it is necessary to prove that the transaction was carried out fraudulently through or under the influence of blackmail, due to a combination of grave circumstances, or the donor was unable to understand the meaning of his actions, was incapacitated.” If the donor himself brings a claim to the court, he can rely on Article 578 of the Civil Code of the Russian Federation, which regulates the cancellation of the gift. According to it, a donation can be canceled if the donee has made an attempt on the life of the donor or members of his family and close relatives or has intentionally caused bodily harm to the donor, and the donee also deals with real estate that is of special non-property value for the donor (say, this is his family mansion), in such a way that it creates a threat of its irretrievable loss: for example, doing a large-scale redevelopment in an apartment, etc. So it is better not to alter the property received as a gift, and the donor should be treated with the utmost respect.

    Advantages and disadvantages of an apartment donation agreement: pros and cons, pitfalls | Housing consultant

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    The content of the article:

    Donation

    The gift transaction is concluded between two parties. The donor is the owner of the transferred property, and the donee can be any person.

    Such relations are regulated by Chapter 32 of the Civil Code of the Russian Federation . The concept of a gift agreement is given in Art. 572 of the Civil Code of the Russian Federation , which states that donation is a legal act within which property is transferred from its owner to another person free of charge.

    It is important to understand that the article describes the most basic situations and does not take into account a number of technical issues. To solve your particular problem, get legal advice on housing issues by calling the hotlines:

    Call and solve your problem right now - it's fast and free!

    The donor can only be that citizen who owns this or that property by right of ownership, and at the time of concluding the agreement is fully adequate and capable.

    The presence of a family relationship between the parties to a transaction is not a prerequisite for the agreement, just like a written form.

    The object of donation can be: an apartment, valuables, expensive household items, copyrights.

    Minor children can also take part in the transaction. If the issue concerns small household items, then they can dispose of the item at their own discretion; for other items, the presence and consent of the guardianship service, as well as the parents or other legal representatives of the child, will be required.

    The donation agreement form can be downloaded from our website. You can view and download here: [Sample apartment donation agreement].

    Attention. If you have any questions, you can consult a lawyer for free by phone: +7 (499) 553-09-05 in Moscow, +7 (812) 448-61-02 in St. Petersburg, +7 (800) 550-38 -47 throughout Russia. Calls are accepted 24 hours a day. Call and solve your problem. It's fast and convenient.

    Advantages of transferring ownership of an apartment under a gift agreement

    A gift agreement has several significant advantages over a purchase and sale agreement or the drafting of a will. Advantages of a gift agreement:

    1. A donation acquires legal character and legal status only when the transfer of residential premises occurs, and not at the time of registration with the Federal Reserve System, as a purchase and sale agreement. In other words, the recipient becomes the owner of the apartment from the moment the donation document is signed.
    2. In some controversial situations, a gift agreement may be a solution. For example, if the apartment is in shared ownership, and one of the owners does not want to sell his share. Then the remaining owners can transfer the property to another person through the donation procedure.
    3. Property that is donated cannot be the common property of the spouses.

    Disadvantages of transferring ownership of an apartment under a gift agreement

    Pitfalls when buying an apartment under a gift agreement can become a significant condition for refusing such a transaction. The point is that giving has more than just benefits. Disadvantages of a gift agreement:

    1. Gratuitousness of the gift agreement. Such a transaction is undesirable, since in the event of controversial situations or suspicion of fraud, this legally significant action will be very difficult to challenge.
    2. Giving is an unconditional act. When concluding an agreement, the donor does not establish any conditions for the transaction.
    3. Taxation of gift agreements. In this case, income tax of 13% is paid only by that citizen who is not a close relative of the donor.

    The pros and cons of a gift agreement are essential for deciding whether to enter into such a transaction.

    Comparison of an apartment donation agreement with a purchase and sale agreement

    The purchase and sale agreement and the gift agreement have significant differences:

    1. Purchase and sale is a compensated transaction in which the owner of the apartment receives an agreed amount; donation is a gratuitous act.
    2. The gift transaction is unconditional, but the purchase and sale agreement specifies a number of conditions that must be observed so that the transaction is not considered void.
    3. When concluding a purchase and sale transaction, it is necessary to pay a state fee for registering the deed, and when making a gift, a person who is not related to the donor will have to pay income tax in the amount of 13% of the value of the property.
    4. The donation agreement becomes valid at the time of signing, and the purchase and sale agreement becomes valid after state registration.

    In the event that the transfer of housing occurs between relatives, then the best option is a gift transaction, and when transferring housing between strangers, it is best to choose the execution of a deed of sale .

    Comparison of an apartment donation agreement with a will

    A will and a deed of gift also have a number of fundamental differences. First of all, the recipient can take possession of the property immediately after signing the gift agreement. The heir can receive the property only after the death of the testator within six months.

    • Termination of a gift transaction is almost impossible, but a testamentary act can be replaced or even canceled by the testator at any time.
    • As for the cost of registration, the deed of gift will cost approximately 2,000 rubles , but in order to draw up a will and then receive property from it, you will need to pay a state fee in accordance with the Tax Code of the Russian Federation .
    • In the event of a conflict situation with the transferred property, it is almost impossible to challenge the deed of gift (this will require filing a claim in court), which cannot be said about a will, which can easily be re-registered by a notary.

    Concluding a deed of gift is suitable for those people who are related and have no conflicts with each other. The testamentary act is used by citizens who, although they transfer property to their heirs, but after their death.

    The most popular questions and answers to them on the advantages and disadvantages of an apartment donation agreement

    Question: Hello. Dear experts, could you please help me with advice. My name is Natalya, and I would like to give my apartment as a gift to my daughter, but the problem is that she is married, and I don’t really like her husband. Can I issue a deed of gift only for my daughter, and will her husband then be able to claim the apartment?

    Answer: Hello, Natalya. You can completely calmly draw up a gift agreement in favor of your daughter.

    The deed of gift has such an advantage that when transferring property to spouses, it cannot become their joint property (according to Art.

    34 of the RF IC ), therefore, if you include only your daughter in the gift agreement , then only she will be able to dispose of the apartment, since it will be her personal property, which is not jointly acquired by the spouses.

    Conclusion

    We formulate the advantages and disadvantages of the gift agreement in a number of conclusions:

    1. A deed of gift implies the transfer of the property of the donor to the recipient.
    2. There are written and oral forms of agreement.
    3. Minor children, whose interests are represented by their parents or guardians, can also take part in the transaction
    4. Children under 14 years of age have the right to make only donations that relate to small household items and personal items that are not expensive.
    5. The object of the agreement can be both an apartment and intangible property, such as copyright.
    6. It is almost impossible to challenge a gift transaction, and the only way is to file a claim with the courts.
    7. A gift agreement has both pros and cons. In some situations, such an agreement may be the best option, and in some cases, another form of legal agreement should be used.
    8. purchase and sale transaction is more acceptable than a gift for those people who are not related, since it minimizes possible conflict situations and makes it possible to challenge the agreement, if necessary, in court.
    9. It is best to draw up a deed of gift between relatives. This will help you save money and avoid some difficulties with registration.
    10. A testamentary act is also an option for transferring property between citizens, but after the death of the owner. This method is chosen when the owner of the property wishes to transfer it to his successors only after death. If he wants to do this earlier, then a deed of gift can be concluded.
    11. The cost of registering a deed of gift is much lower than a will if the transaction occurs between relatives.
    Read also:  Sample application for restoration of the deadline for accepting an inheritance

    Samples of applications and forms

    You will need the following sample documents:

    • Sample apartment donation agreement

    List of laws

    • Article 572 of the Civil Code of the Russian Federation
    • Article 34 of the RF IC

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    When buying an apartment, what are the pitfalls with a gift agreement?

    Hello, in this article we will try to answer the question “When buying an apartment, what are the pitfalls with a gift agreement?” You can also consult with lawyers online for free directly on the website.

    The use of intermediaries and attorneys is normal practice for transactions. The person who issued the power of attorney may simply not have the time or opportunity to personally find a counterparty, draw up an agreement, register the right, etc.

    Gift tax deduction When purchasing an apartment under a gift agreement, you will not be able to return 13% for it, as if you had entered into a sales agreement.

    Back Forward - Rent agreement: the pros and cons of buying an apartment with conditions Please write your opinion Write reviews on the topic. Do not write empty phrases! Name Mail City Your review How to register a newborn child? A newborn baby must be registered as soon as possible.

    Legal reefs and pitfalls of real estate gift agreements

    A testamentary act is also an option for transferring property between citizens, but after the death of the owner. This method is chosen when the owner of the property wishes to transfer it to his successors only after death.

    However, we must take into account the difference in taxation: having received an apartment as an inheritance, you do not have to pay taxes later.

    But when making a gift, only close relatives (spouses, grandparents, grandchildren, parents, brothers, sisters, children) are exempt from taxes. In other cases, you will have to pay personal income tax - 13% of the cost.

    The tax is calculated based on the value determined by the Bureau of Technical Inventory (BTI).

    Giving your property as a gift is actually not entirely simple. Firstly, only its owner can do this, and not his authorized representative, even if he has a general power of attorney for transactions with this property. To fully understand the need to draw up such an agreement, it makes sense to take a closer look at its possible advantages and disadvantages.

    Pitfalls of a real estate gift agreement

    Many people are interested in what the legislation provides for exemption from paying the 13% tax when donating property to a close relative? Who can be considered a close relative in this case? Does this mean that other relatives, as well as common-law spouses (cohabitants) must pay this tax?

    A donation agreement transaction is considered a non-cancellable transaction, because in practice both the donation and purchase of a donated apartment are terminated and disputed in 5-10% of cases, which occurs in court. Therefore, more often than not, the purchase of an apartment received under a gift agreement is considered as a reliable situation and does not pose a threat of losing the acquired property.

    Practice shows that such transactions concluded with elderly and socially disadvantaged people who do not have other housing are often declared invalid.

    Termination of a gift transaction between the seller and the previous owner

    Can her husband claim the apartment in the future? The owner also has minor children, but they are registered in another apartment. Could there be difficulties with this?

    Those who are buying or have already bought an apartment should know that the mere recognition of the transaction as invalid does not mean that the new owner will lose his property. In each case of such recognition, the situation should be considered individually and in more detail.

    The rules on inheritance provided for by the Civil Code of the Russian Federation also apply to housing. Having received the apartment, the heir has the right to sell it.

    Doubts when buying an apartment are natural for any purchaser of property, especially after reading the above risks and, as shown, not all of them are regulated by the seller’s compliance with the law.

    If the apartment was received as a gift

    Legal consequences of a donation agreement for an apartment, house or land. What are the dangers of a gift agreement, its positive and negative aspects. Registration of real estate received as a gift.

    True, it is very, very difficult to prove the existence of such a conspiracy in practice, since the only weighty incriminating argument in this case will be a receipt for receipt (or delivery) of money. But in a game with such high stakes as owning their own home, many Russians agree to go all-in.

    The above risks apply only to circumstances where both the seller and his representative act in good faith. If the power of attorney was initially fake or the representative acted with criminal intent, we will be talking about fraud.

    The second reason for litigation is the poor health or advanced age of the donor. And if these two factors are superimposed on one another, then for the recipient the probability of a quick visit to court comes close to 100%.

    The above risks apply only to circumstances where both the seller and his representative act in good faith. If the power of attorney was initially fake or the representative acted with criminal intent, we will be talking about fraud.

    She is faithful. But not for objective reality, but for its subjective version in your head. Your experience automatically filled in all the missing puzzles, but who said that experience cannot make mistakes? I know it's difficult, but try to find the strength to admit that you were wrong.

    Therefore, in some cases it is better to bequeath real estate. It's even more profitable for the donor. “When donating an apartment, ownership is transferred, which means the donor will no longer be able to change his mind. And after writing a will, the owner can change his decision as many times as he likes,” argues Rimma Balyasnikova (EGSN). So he has an escape route.

    True, the risk of possible incapacity of the apartment owner is inherent in any transaction for compensation, with the exception of the purchase of an apartment on the “primary” basis.

    For example, if the owner of a share in an apartment wants to sell it, and other owners abuse the right of pre-emption, he can replace the purchase and sale with a gift.

    The Bureau is obliged to provide consultations and information to various state and municipal structures, as well as citizens of the Russian Federation. The results of the work of the Federal BTI on Rostekhinventarization, that is, the collection of information and the formation of a unified database for all real estate objects, are necessary for: Registration of ownership rights to property. Tax calculations. Preparation of accounting reports.

    Assessing the condition of buildings and making decisions on relocating residents from dilapidated buildings. Assignment of cadastral numbers. Issuance of technical passports.

    The Federal BTI for Rostekhinventarization provides all the data on real estate objects, allowing the formation of the state register of real estate - the Unified State Register of Real Estate.

    This must be done in order to find out whether the apartment was previously privatized and whether a person who refused to take part in privatization is registered in the apartment.

    The second group of situations that are risks of purchasing an apartment under a gift agreement are situations where the buyer may be drawn into proceedings between the seller of the apartment and its donor if the gift agreement is terminated.

    In their eyes, such a form of transfer of ownership looks like an unshakable rock, a panacea for all ills.

    But if, nevertheless, the fact of transfer of money from one participant in the transaction to another takes place, then the donation is clearly recognized as feigned.

    In addition, the former owner does not receive any compensation (neither monetary, nor material, nor moral). If an agreement, which is called a gift agreement, imposes any obligation, for example, to look after the donor, then it is not recognized as a gift.

    Peace of mind with a notary A simple written gift agreement is more often used when close relatives are parties to the transaction. These include children (including adopted children), parents (as well as adoptive parents), spouses, grandparents, grandchildren, brothers, sisters (full and half-blood).

    Many people want to own a home. However, when purchasing an apartment, the buyer may encounter some problems. Some of these difficulties arise when the seller himself is a new owner of the apartment.

    Articles and videos about the secondary real estate market

    Such a contribution to the treasury can be avoided only in one case: if the recipient and the donor are close relatives. These are recognized by law as parents, children, spouses, grandparents, as well as full or half brothers and sisters.

    In such cases, a property valuation certificate, which is in the archives of the notary, comes to the rescue. This certificate is good evidence that the issue of the value of the property was discussed and the donor was aware of these conditions. And it would be nice to have proof of the donor’s sanity, just in case.

    To do this, the donor must prove that he did not understand the consequences of signing the agreement or transferred the property under the influence of deception or threats.

    In practice, gift agreements concluded between close relatives are often disputed by other relatives of the donor. One of the reasons for going to court is a reference to the fact that if the donor knew or could guess about the actual, real price of his real estate, he would never have decided to dispose of his property in this way.

    What are the dangers of an apartment donation agreement?

    Due to abuse of the right of priority to buy out a share or due to a large number of co-shareholders, sellers sometimes find themselves hostage to the situation. Market participants believe that changes should occur in this matter at the legislative level, since today such a scheme can be used not only for the sale of real estate, but also for fraud.

    Concluding a deed of gift is suitable for those people who are related and have no conflicts with each other. The testamentary act is used by citizens who, although they transfer property to their heirs, but after their death.

    It is important to understand that the article describes the most basic situations and does not take into account a number of technical issues.

    The gift agreement makes it possible to bypass some legal restrictions provided for other transactions for the alienation of housing.

    You should also study the registration certificate of the apartment. It will show whether a major redevelopment has been carried out and whether permission has been obtained for this.

    Including getting to know the donor, in order to understand what is wrong with his situation, and whether, at the time of sale of the apartment to the donee, he has grounds and intentions for refusing the donation or claims to the donee.

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