A contract for the sale of an apartment between close relatives

The sale of an apartment to a relative in terms of legislation and procedure, a package of necessary documents, does not differ from a similar transaction with any other non-family citizen.

Clearly, your relatives will be aware of the state of the dwelling and may be willing to buy it with certain nuances, defects, or will not require further checks.

Dear readers, our articles talk about model ways of dealing with legal issues, but each case is unique.

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But it'sDoesn't releaseSince, first of all, all the certificates, certificates and statements that need to be provided are not for you and your relatives, but for the public authorities and the public authorities.to ensure the legality of the transaction.

To what should I pay attention?

• In all official bodies, in the legislative and regulatory framework concerning the procedures for the sale of real property,There is no separate categoryregulating such transactions between relatives.
• Doesn't existNo benefitsor simplified procedures.
• In view of the above information,Beware of Swindlers.proposing that the sale or purchase of an apartment between relatives be quickly "made" for sale.
• Don't try to save or accept proposals from notaries, valuers, real estate agents, and other "specialists" suggesting that the sale of the apartment be made faster, without providing some documents, and with others.Deviations from legislation.
• In the future, such a deal could becontested or declared invalidto involve a number of proceedings and fines.

Conclusion of a sales contract

The purchase/sale of an apartment will require the submission of the following documents and will consist of such steps:

1. First, in accordance with article 131 of the Russian Civil Code, a notarized permit (consent) must be obtained from all owners of the dwelling for sale.
2. If there are minors among the owners of the dwelling being sold or persons who are incapable and of limited capacity, under articles 28 and 29 of the same Code of Criminal Procedure, a decision must be obtained from the guardianship and guardianship authorities.
3. Provide an extract from the cadastral passport and the home book (for cooperative homes), an extract from the facial account, a BTI transport document, and participants ' passports.
4. Once all documents have been collected and made available, a sales contract shall be drawn up.
5. The next step is the drafting of an act of acceptance and transfer of real property, which, in accordance with article 131 of the Criminal Code of the Russian Federation, is registered at the State registration centre.
6. Once the deed is registered, the relative buying your apartment will be issued a certificate of ownership in his name; it is from this moment on that moment that you do not have property rights on the premises, and it is wholly owned by the new legal owner.

As the provisions of the Russian Civil Code state, the contract of saleNot necessarily.shall be drawn up by a notary.

A contract may be entered into if it so wishes.by handas long as it meets the requirements of article 454 of the Russian Civil Code.

But if you do not have a thorough knowledge of legislation and experience in treaty drafting, to avoid subsequentconstraints and challengesIn the course of a transaction, it is better to ask the notary for a professional and accurate contract.

Adds and minuses of this method

1. A way of transferring ownership of an apartment to a relative, like selling it, has a number of ways.Gaps.
2. The main disadvantage can be seen as the fact that acquired property, even from relatives, is still considered to be jointly acquired if the buyerMarried; thus, in the event of divorce, such an apartment would have to be divided between the spouses.
3. It can also be described as a disadvantage in the future.Control the actions of a relativeWith this apartment; for example, parents who have sold the apartment to children who will want to do anything with it in the future will not be able to challenge it; even if future transactions are illegal, you will not be able to challenge them and return property because you will not have any grounds and rights.

But the latter may in some cases be considered andthe advantageFor example, if you are a buyer of such an apartment, no one is in the future.He won't be able to challenge it.The legality of your property.

• The seller itself can't suddenly "rethink" or count the deal.Misappropriatedas the apartment will not be served but sold and he will receive a fair and appropriate payment for it.
• The same applies to children or other relatives of the seller.
• For example, if someone thinks after his death that the apartment should have been divided between family members, prove something in court, and get some of your property these peopleThey won't.since you will be the owner of the dwelling on completely different grounds not related to the gift or the will.
• You can't exactly call it a plus or a minus the fact that the sale of the apartment to a relativecannot be withdrawnlike the gifted one, or challenged by other relatives in court.
• It depends on the reasons why you need to carry out this transfer, the degree of kinship and the atmosphere of trust in your particular family.

Today, the secondary housing market includes% shareIn apartments and sold separate rooms.

This is most often the case for the following reasons:

• The sale of a privatized room in a communal apartment;
• The privatization of the dwelling in proportion to the children and parents living in it;
• The division of property by the spouses in the event of divorce;
• The inheritance of several persons entitled to inherit the same dwelling.

In general, the process of selling shares in the apartmentIt's similar.with similar procedures with a full apartment.

You're gonna have to turn it in.same package of documentsto draw up a contract, to register it, to pay the State's dues and to obtain a certificate of transfer of property rights.

But there are a number of nuances.Communal sharesin the first place, the right to ransom is vested in the other tenants of the dwelling.

In other words, the owner of the room to be sold must first notify the neighbours (the remaining owners) of their intention to sell their space, and they are given a month to think about it and only then can other buyers be considered.

In the case of the purchase of a share in an apartment by a relative of those who own itRight due to inheritanceor other reasons, the same procedures are also followed as when buying an entire apartment.

There is, however.It's an interesting moment.relating to the method of transfer of money, possible arrangements between relatives and the need to pay a tax deduction.

In case of a share of the dwellingnot transferredbut there is a sales contract involving an indication of the value of the area, the NPFL tax must be paid in the amount of 13 per cent of the balance of the sum exceeding 1 million roubles.

1. Don't be too hard on purpose.lower the amountas the legislation provides for the relevantpeniIn this case.
2. If the owner(s) of the interest sold in the dwelling isminor childor it's written in this square (e.g. one of the parents inherited the square and wants to sell it), it's necessary.authorizationfrom the guardianship and guardianship authorities.
3. There is a need to provide evidence that, as a result of the sale of the share in the apartment,They won't get hurt.The child ' s property rights and living conditions.

It shall then be prescribed either in the same area or in larger butNo, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no.The same is true for disabled or partially capable persons.

Tax deduction

Tax deduction is levied on the seller if the flat was owned by the sellerLess than 3 yearsThe tax rate (NDFL) is equal to13%.

It's not the whole amount that's being collected, it's the only one.Part of itwhich exceeds 1 million p.m., i.e. when selling an apartment with a value of less than 1 million p.m., this tax is levied.Not gonna happen..

It should not be assumed that it is sufficient to specifyAmount understatedIt is also possible to have family members: part of the sum is transferred informally.

But to avoid the like of it,SchemingThe law provides for appropriate measures.

If the contract value of the dwelling(s) is lower than the estimated value (market value)more than 20 per centthe Tax Inspectorate has the right to assess the penalty and the amount of the tax charge at its discretion.

The same applies tosale of shareIn the apartment, with some differences in numbers, the minimum length of tenure is3 yearsand the value above which the tax deduction is applied is 1 million pp.

Taxes collectedOnly from sellerThe buyer does not pay any deductions.

It is by sale that the transfer of the dwelling or its share to the relatives is clearly flawed, the main of which is –Tax charges.

But at the same time, this way isThe most reliableIf the transaction is properly processed, without circumventing the law, no one will ever be able to do so in the future.To challenge or withdrawSales contract.

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Buying the sale of an apartment between close relatives: taxes

When there is a need to convert an apartment into a family member, citizens usually face the most difficult question about the procedure.

In order to do everything under the law, a number of important points should be taken into account, not only with regard to re-registration but also with regard to subsequent taxes.

Today we will see whether the sale of an apartment between close relatives is permitted and how it can be legalized.

Can you sell housing to a relative?

The Tax Code (art. 105.1) includes the following persons as close relatives: spouses, children, parents, adoptive parents, brothers and sisters (including those with only one parent) and the rest of the relatives are not related to the relatives, so that transactions with them are subject to general rules.

The purchase of a dwelling by a sales contract with a close relative is not prohibited by any regulation; this is a legal transaction, and only on the grounds that it is a family contract, no one can challenge it.

Moreover, there are no administrative or tax penalties for the sale of an apartment between relatives.

All of this is true, provided that the OST is for the purpose of selling the dwelling, i.e. recompensating it to another person.

A completely different assessment of the transaction is made if the OST is only "for checking" in order to formally rewrite square metres to another person, such schemes are used to avoid debt liability so that the bailiffs do not arrest or sell the place from the bidding process; in such a situation, the agreement can be revoked through a court of law because of its implausibility.

It's important.If you convert the apartment into a close relative, a family member, in order to escape liability for taxes, fines, contractual debts, utility payments or bankruptcy, remember that your transaction can easily be challenged in court.

Using maternal capital

The Pension Fund is wary of family-to-family transactions because of the increased statistics on the criminal cashing of family capital certificates – the family enters into an implicit sales agreement to which the money goes. That's why such transactions are checked especially carefully, but they are not explicitly prohibited.

The Fund will approve the deal if:

• The price of the dwelling under the agreement is as close as possible to the average market in the region;
• If the family buys the last share of the dwelling and, as a result of the transaction, gets the full ownership of the dwelling;
• A full set of documents has been submitted, the authenticity of which is beyond question.

Tax and deduction

The seller, under an agreement to sell the dwelling to a relative, acts exactly as if the apartment had been sold to any third person:

1. He's estimating the length of tenure.
2. If the time limit is more than 3 (5) years, the sales tax may not be paid.
3. If the tenure is shorter, a fixed or tax deductible is applied and 13% tax is paid on the balance of income.

The buyer is restricted in this case. Article 220 of the NK of the Russian Federation prohibits the return of NPFL from the budget in connection with the purchase of housing from a close relative, the circle of which has been indicated above, which means that even if the deduction documents are filed, they will be refused in return.

Conclusion of the contract

The paper presentation procedure is no different from the standard procedure. The process facilitates some of the benefits:

• A trust relationship reduces each side ' s risk to a minimum;
• There is no doubt about the legal purity of the apartment;
• There are no underwater stones in the form of interested heirs or relatives whose rights have been violated;
• you may not spend money on a broker (cell, deposit, letter of credit, escrow) on payment, which reduces transaction costs.

The process includes standard steps:

1. Collection of necessary documents, consent and authorizations.
2. Preparation of the text and signature of the agreement.
3. Transfer of registration documents to Rosreister.

It's important.The extra steps are to hand over the dwelling by act and the full payment under the sales contract is entirely dependent on the terms of the contract, which can be done both before and after the filing of the registration papers.

List of documents

A close relative will need:

№	Document	Commentary
1	Exit from EGRN or certificate of ownership of housing	For a transaction, it is better to order a fresh release from the Register, which will show the existence of housing restrictions.
2	Technical documentation	The technical plan or passport of the apartment will help to determine whether there is an illegal alteration.
3	Authorization of the guardianship and guardianship authority	If the seller is a minor
4	The husband's consent to the deal	Notarized, certificate price approximately 1,000 rubles
5	Reported or discharged from a home book	To confirm that there are no registered citizens in the apartment
6	Certificate of non-debt on LKS	Needed for the verification of utility arrears
7	Secretary of State	EGRN fee bill for registration 2,000 rubles

Once documents have been collected, it is possible to begin drafting the text of the treaty and signing it, as well as to draft a transfer document.

Model contract

A standard contract is being developed. No degree of relationship is required in the text. The contract is not subject to a general notary certificate, except in the following cases:

• If the seller is a child;
• If the share of the apartment is sold.

The value of the notary certificate in the two above-mentioned cases will be lower than if the sale of the apartment took place between outsiders.

The text of the treaty should specify:

• FIO of the parties;
• The subject matter of the contract - the seller sells and the buyer buys housing;
• A detailed description of the dwelling ( Address, area, number of rooms, floor and other identifications);
• The price of sale and the manner of payment;
• The procedure for the transfer of housing;
• A list of citizens entitled to live in an apartment, if any.

In addition, the parties indicate the grounds for the termination of the contract and the penalties for non-payment, but if there is trust between relatives, family members may be limited to general formulas.

A contract form for the sale of an apartment between close relatives can be downloaded from this link.

What to Draw Attention to

As with any transaction, special attention must be paid to the transfer and payment of the dwelling.

The transfer of the dwelling is usually made on the basis of a transmission document and can be performed by:

• The treaty itself - if it is expressly stated in the text;
• A separate document is a more reasonable and secure option.

When drawing up the transfer certificate, the condition of the dwelling at the time of the sale must be described in detail.

You can download the transmission form here.

Payment for an apartment on sale between close relatives is most often made in cash or in cash from the account to the account; there is no reason to spend money on the rental of a cell, the use of a deposit, a letter of credit or an escrow, since the parties have full confidence in each other.

You can download a receipt form here.

Registration in Rostreister

The transfer of the right to an apartment to the new owner requires compulsory registration with the EGRN, which requires:

1. Collection of documents: 3 sales contracts, 3 transfer documents and papers on the list above.
2. Come to my papers: the parties come in person or send their representatives on a notarial trust. It is better to register with the IFC in advance, as the reception requires at least 30 to 40 minutes of free time.
3. During the reception, the specialist will prepare a statement and accept the list documents. Each party will receive its own copy of the list, which will be followed by the result later.
4. At the end of the registration period (7-14 days) come up with an inventory and obtain an extract from the REM, a contract and an act containing the registration marks.

In some regions, an application for registration has been made electronically.

From the time of registration, the buyer takes the right to dispose of the dwelling, starting on the same day, the period of ownership for the calculation of the annual property tax, for example, if the date of contract 02.12.2016 and the date of registration 25.01.2017, the property tax will not come until 2018 for the previous year.

Sales or gifts

By analysing the situation, the family will in any case be faced with a choice: to make a gift or to buy a sale of an apartment; similar at first sight, these instruments are very different.

The benefits of giving a close relative before the sale are as follows:

1. It's more difficult to challenge in terms of money transfers. No money is transferred to an apartment, which means that this argument cannot be used in court to cancel an alleged transaction.
2. There is no need to pay any taxes; the former owner does not receive any income, and the new owner is exempted from paying NPFL under the rules of the Tax Code.
3. If you get a share of the right to an apartment, you don't need to certify the contract from the notary, the transaction costs are much lower, which means that the payment of the gift is better than the sale.
4. For example, if parents decide to convert the apartment into a married daughter, the sale of the dwelling will result in her and her husband's common property and, if given, only her personal property.
5. A giver may return to his or her home if it is being used by the new owner for an improper purpose or if it has deteriorated significantly.

The disadvantage of giving between the next of kin is that the persons concerned have the opportunity to challenge the transaction as having been made under pressure or threat, a position that is more difficult to prove when sold.

Given the arguments given above, giving is a better deal between close relatives than buying a sale, but in the end, it is better to sell an apartment, and each family decides on its own.

So buying an apartment between close relatives is a perfectly legitimate procedure, albeit nuanced, and making a contract is simple enough, it doesn't require further assurance from a notary.

The available alternative to selling is gifty, but how best to formalize – in any case, relatives, family members, depending on the situation.

You can get free advice on all matters from a lawyer through an online consultant.

• We'll be grateful for the job evaluation, the bark and the repost.
• The instruction on how to buy or sell an apartment without a realtor is described further.

Procedure for the sale of a mortgage dwelling

A contract of sale, which is the final stage of a transaction for the transfer of property from one person to another, in exchange for money, may be entered into by any owner who wishes to be a seller and by any buyer who has the means to purchase the property; however, like any other transaction, under different conditions of purchase and sale, there may be different scenarios.

In our article, we will explain how a sale of real property between close relatives is conducted and what subtleties are to be taken into account in the form of a contract. There are other ways in which property rights can be transferred from one relative to another, but some prefer a contract of sale. Why?

Sale, gift or will

By planning a sale with a close relative,One should not forget the possibility of a treaty of giving, which might seem to be more advantageous.Thus, when the property is transferred under the gift contract, the giver will not be required to pay any taxes because such a transaction does not involve profit.

A key positive development is also the fact that property transferred under a gift contract is transferred to the indivisible property of a particular citizen and is not considered to be joint property acquired during marriage.

Close relatives have the option of transferring property to each other as a will.

The benefits of this type of agreement will be the same as in the case of a gift, but the transfer of property and the encumbrance to which the testator may give his will is a highly questionable prospect.

First, the heir to the will may face a number of problems, in the opening of the inheritance and in the distribution of shares.

They may arise if the legal heirs are minor children, disabled spouses, etc. whose share in the will cannot be excluded.

Although, as you can see, there is an alternative to a contract of sale, this type of agreement remains the most popular one, and there is one reason why relatives sometimes make it possible to process a contract of sale; transactions based on the free transfer of property will be much easier to appeal to a court than a transaction on the basis of which both parties have benefited.

An appeal against wills and gifts is very often made by relatives whose interests have not been taken into account by the giver or the heir; this is sufficient to challenge the agreement; as a result, the new owner can only own a share of the property and not the entire property.

To challenge the contract of sale, it will be necessary to prove either the illegality of the transaction or the nullity of the contract; these risks may be excluded by resorting to a lawyer to draft the contract of sale, the content of which will not even be challenged by the courts; this characteristic of the contract of sale makes the transaction attractive even to close relatives.

Is it possible to formalize between husband and wife?

According to the Family Code of the Russian Federation,The following persons may be considered close relatives:

• Mother and father;
• Sons and daughters;
• Brothers and sisters;
• Grandparents;
• Carers and wards;
• Couples.

To whom an agreement can be concluded

From the point of view of the law, all property acquired by the spouses during marriage is considered to be jointly acquired and belongs to the spouses in equal shares. Accordingly, it is not possible to dispose of the property in favour of the second half of the couple except by means of a gift or by means of a will.

But for those who have broken their legal relations and are in a divorce process, the writing of a contract of sale, and for the most literate division of property, is the right course; and on the basis of the outcome of the divorce, the property is divided between the spouses, according to the shares each of which may be sold, given or given in will, with the consent of all the owners.

If one of the former spouses does not benefit from this arrangement, he may be asked to purchase his share of the estate, which will be the basis for the contract of sale.

The transaction has little difference between relatives, and the only nuance that makes the contract of sale between relatives different from the ordinary civil transaction with the shares of real estate is a discount on the government, the amount of which is calculated on the basis of the length of the relationship between the parties.

Value

The transfer of property rights must be registered with the administration, which makes it compulsory to register a transaction in Rosreestre, and to pay the public service, but this is not the only cost that will have to be incurred in the formation of a contract for the sale of real property between relatives.

It should be borne in mind that for every real estate transaction that is made in relation to an object owned by a seller for less than three years,Property deduction shall be made except in the following situations:

• The cost of the facility is less than 1,000,000 roubles;
• The price at which the property is purchased is equal to the price at which the object was sold;

These exceptions apply to all sales transactions, including between relatives, and it should be borne in mind that scheming and lowering the price will not be possible to reduce the amount of the tax payment; according to the law, in the case of sale of real property at an undervalued price, the tax is calculated on the basis of the cadastral value of the facility.

The "non-reimbursable" deal

A contract of sale between close relatives remains a standard and frequent transaction, because other contracts are free of charge but may have some burdens that may increase risks.

If a gifted person dies, the property is returned to the giver or his family.

It is worth noting that such transactions, though called free transactions, will have to pay a notary to check a document from a notary. Although the cost of the document is not high, this does not give full certainty as to the legal validity of the paper, since verification of the contents in such a case is a mere formality and relates exclusively to the content but not to the legal basis of the document.

Model contract

Outcome

In planning a sale with close relatives, a lawyer should be consulted.

He'll tell you what kind of contract you're better suited to, help you prepare the documents, and make the most intelligent sales contract.

Today, the sale of real property implies compulsory registration of rights in Rosreestre, which makes notarizing documentation unnecessary, since the title mark will be placed directly in the OST.

You can make a contract on your own, but to eliminate all risks and create a safe and legitimate agreement, to get the support of an experienced lawyer, it's the right thing to do.

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Specific features of the sale and sale of property between close relatives

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Can you sell it?

The law defines who may be considered close relatives.According to the Family Code of the Russian Federation (art. 14), these include:

• Parents and children;
• Grandparents and grandchildren;
• Brothers and sisters.

It matters!There are no legal restrictions on dealing with property between relatives; real property can be transferred through a contract of sale; the document is issued in a standard form, regardless of who the seller and the buyer belong to.

Special rules apply if the minor is a party to the transaction.

Sale of real property is prohibited between minors and their legal representatives- Parents, adoptive parents, guardians, guardians and their spouses and close relatives (art. 37 of the Criminal Code of the Russian Federation).

It appears that an object belonging to a child under the age of 18 cannot be sold to the mother ' s close relatives if it is his or her legal representative.

Can a spouse sell to a spouse?

The couple, like other close relatives, can sell property to each other; however, it is not possible to conclude transactions between them if the property is sold together. Any property acquired during the marriage is considered to be common property.

If the property was acquired before the marriage, it may be sold to the spouse freely.

A transaction for the sale of objects acquired during the marriage is possible if:

• Real estate was passed on to one of the spouses by inheritance.
• The object was donated.

In both cases, the property will not be treated as a general property, which means that it can be sold between the spouses without restrictions.

Plan of action on how to make a deal

The sale of real property between relatives follows the usual pattern:

1. A sales contract is being concluded.
2. The deal is registered in Rosreister.

Collecting two types of documents:

1. To check the legal purity of the transaction.
2. To register the transfer of ownership in Rosreister.

Usually, the first package of documents is much broader.The buyer needs to ensure that the property purchased is legally clean.This is particularly the case with housing units (rents, houses), which are checked for:

• The presence of an encumbrance;
• Unlawful alterations, etc.

However, non-residential property also requires control; for example, land must also be checked for seizure and for the right of third parties to claim the site.

The second list includes only the documents required to register a transaction in Rosreister.

Attention!A sales transaction between relatives is convenient in that additional verification of the sales facility is not usually required.

The following documents are required to be submitted to Rostreister:

• Sales contract.
• Document on the basis of which ownership of the facility is exercised (contract of sale or gift, document of privatization).

Formation of the treaty

A contract of sale between relatives does not require a specific structure and does not contain specific paragraphs; if the parties to the transaction are not minors, the document may be processed in a simple written form.

In accordance with the Civil Code of the Russian Federation,Any treaty should include information on substantive terms.In other words, the paragraphs without which the document will be declared invalid are:

1. Name of document.
2. The parties to the contract (seller and buyer, with FIO and passport data).
3. The subject matter of the contract is what is sold (rent, delivery, land).
4. The nature of the contract (i.e. the act carried out with the real estate is the sale).
5. Contract price (indicate amount to be paid for the sale of real property).

In the case of a family-to-family transaction, the point of main interest is the price of the contract.The amount received from the sale of real estate is considered incomeIn such a case, the seller will have to pay a tax of 13% of the profits.

It matters!Usually, relatives involved in the transaction deliberately lower the price of the property; however, the scheme is liable to fines from the tax authorities. They have the right to check the transaction. If it turns out that the contract price is well below the market value of the facility, the tax will have to be paid with the accrued penalties.

In addition to the essential terms of the treaty, additional clauses are also indicated.It's usually written:

• Procedure for transferring property to the buyer (as and when).
• A scheme of settlements between the parties to the transaction (in what form they will take, before or after registration of the transaction, etc.).
• Detailed description of the condition of the facility being sold at the time of the transaction.
• The seller ' s statement that there were no encumbrances and real estate claims.
• The seller ' s confirmation that there is no debt for utility payments (if an apartment is sold).
• Procedures for the settlement of disputes and the allocation of responsibility.

In the case of a transaction between relatives, these points may be missed, i.e. a simplified procedure, and the sale is essentially a sham.

Transactions and registration

The notary is not required to register the contract (except in cases where one of the parties is a minor). The document is signed by both parties and transmitted to Rosreister for registration.The registration authority will need to provide:

• The passport of the parties to the transaction.
• Sales contract.
• It's a bill of payment for the mistress.
• 2 Applications for registration (for transfer of right from seller and registration of new right from buyer).

In some cases:

• The consent of the spouse (if the object is joint property).
• Refusal by co-owners of the right of priority purchase (if a share of the total equity ownership of the facility is sold).

Taxation

Any income from the sale of property is a profit and is taxed on the income of natural persons (CL 23). When a relative is given real property through a contract, the seller will have to pay a tax of 13 per cent of the profits (CK art. 217.1).

Russian legislation provides for cases in which the seller may be exempted from paying taxes.You don't have to pay the tax:

1. If the property sold has been owned for more than five years (or three years if it has been donated or inherited), art. 2, paras. 10 and 11 of FZ-382 of 29.11.2014. It does not matter whether it is a resident or not. A non-residential object in such a case shall not be used for commercial purposes.
2. If the value of the site sold does not exceed 1 million roubles for residential facilities, garden houses and land (art.
3. If the cost of the facility does not exceed 250,000 rubles, for non-residential properties.
4. The value specified in the contract corresponds to the value at which the property was acquired earlier.

Deduction on purchase

The tax deduction is provided for the construction and purchase of real estate and land, and the tax payer is entitled to a refund of 13 per cent of the costs incurred in the purchase (art. 220).

The maximum deduction is 2 million roubles, i.e. no more than 260,000 roubles.For example,If the object is worth 1,500 000 rubles, the return will amount to 190,000 rubles.

With the real estate value of 5,000 thousand rubles, 13 per cent of the total will not be received, and only 260,000 will be paid to the buyer (not 650000).

How many times is it granted?

Previously, there was a rule under which a deduction of property could only be made once in a lifetime; for those who acquired real property after 1 January 2014, this restriction was lifted (art. 220 para. 2 para. 1 of the Russian Federation).

Attention!Returns can be made from any number of sites; only the amount to be deducted is limited; they amount to 2 million roubles.

For example,In 2015, an object was purchased for 200,000, in 2017 it was purchased for 400,000, in 2023 it was purchased for 700,000.

It should be borne in mind that this is only about real estate.

Limitations and nuances related to benefits

When buying and selling property between relatives, there are restrictions on obtaining a deduction of property.The Tax Code does not provide for benefits if a transaction is concluded between interdependent personsThese include:

• The spouses;
• Parents;
• Children;
• Brothers and sisters.

In other words, when you buy real estate from your next of kin, you can't get the property deduction, but this rule doesn't apply to the distant family. For example, if the estate or any other object buys a nephew from his aunt, he's entitled to a 13% refund.

It matters!You can also hand over property to a relative through other legal procedures, such as gifts and wills.

A special feature of the will is that property can only be acquired after the death of the heir through the right to inherit.

A gift contract is the most convenient form of transfer of real property between close relatives. A gifter will not have to pay a tax on the property he has been given. If the gifted person is married, the gifted property will not be considered jointly acquired property (article 36 of the UK).

Article 36 of the Russian Federation: Property of each spouse

1. Property owned by each of the spouses before the marriage, as well as property acquired by one of the spouses during the marriage as a gift, inheritance or other free transaction (the property of each of the spouses), is his property.
2. Individual use (clothes, shoes and other), with the exception of jewelry and other luxury items, although acquired during the marriage from the common resources of the spouses, is recognized as the property of the spouse who used them.
3. The exclusive right to the result of intellectual activity, created by one of the spouses, belongs to the author of the result.

Adds and minuses of the OST

Adds of the sale transaction:

1. It's harder to challenge than giving.
2. The possibility of obtaining a property deduction if the buyer and seller are not next of kin.

Minutes:....................................................

1. The seller will have to pay the sale tax (no tax on the next of kin).
2. If the buyer is married, the property obtained will be considered joint property.

Difficulties and underwater stones

Factual price

The main problem in a family-to-family transaction is in determining the value of the object in the contract.

If the real price is given, the amount of the tax for the seller may be too high, but if the amount is substantially reduced, the transaction may be considered to be false.

In such a case, ownership will either not be registered by Rostreestro at all, or will be revoked at a later date.

Attention!In order to avoid negative consequences, it is necessary to record the transfer of money from the seller to the buyer.

It should be remembered that the sales contract is a legal document.It is on the basis of which the right of ownership is registered; even if a contract is concluded between close relatives, all points should be taken into account.

A contract for the sale of real property between relatives is an alternative to a gift procedure; its structure and registration process are not affected by the relative status of the parties to the transaction.

If they consider this option to be the most appropriate, they may proceed with a classical purchase and sale scheme.

The important thing to remember is that such a contract requires the seller to pay the income tax.

We've already realized that you have a particular problem.

Call, we'll decide:

Buying and selling an apartment between close relatives

At times, relatives are involved in the sale of the dwelling.

The purchase and sale of any property between relatives is legal and no regulation prohibits such agreements.

Another question is, if the relationship is used to convert property to another person to avoid liability.

The Act defines the circle of close relatives, as follows:

• The spouse;
• Children;
• Parents;
• Grandparents;
• No, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no.

Civil law does not create additional negative nuances related to kinship.

In other words, no one disputes the contract, and the court or tax office will not be punished simply because the apartment was sold to a native man.

They are reminded of their relatives in bankruptcy or tax cases, and then they go away from their responsibility by rewriting their property into their relatives, and such schemes are indeed illegal.

Procedure for the purchase by a family member

A transaction between close relatives has the following characteristics:

• The trust between the participants exempts them from long-term collection of documents;
• The rent can be paid in cash without the use of complex mechanisms (credit, escrow, bank cell);
• It is possible to agree on more loyal terms for the payment of the dwelling, without placing the dwelling on the seller ' s bond;
• The payment of notary services on certification of a contract would be less at the expense of affinity.

A trust-based transaction does not involve an in-depth analysis of the history of the apartment.

Housing is also based on participants ' trust, which means that there is no need to use an intermediary, an approach that will save on all kinds of banking boards and fees.

As a general rule, when paying an apartment in instalments, the seller remains entitled to a mortgage for a sold dwelling until the last payment is made; in the case of a transaction between a close person, it is possible to reach an agreement on a breakout and without registration of the pledge.

• Note, however, that all the nuances listed are based on the personal relationship of the parties.
• The only difference stipulated by the regulations isCalculation of the payment of notary services.
• Thus, if the apartment is sold to the spouse, parents, children, grandchildren:

Amount of transaction
Indicative tariff

up to 10,000,000 roubles inclusive	4800 roubles + 0.2% contract price
Over 10,000,000 roubles.	24,800 roubles + 0.1% of the price exceeding 10,000,000 roubles but not exceeding 50,000 roubles.

If the dwelling is sold to other persons:

up to 1,000,000 rubles.
4800 roubles + 0.4% of the value of the transaction

From 1,000,001 roubles to 10,000,000 roubles.	8,800 roubles + 0.2 per cent of the value of the transaction exceeding 1,000,000 roubles
Over 10,000,000 roubles.	26,800 roubles + 0.1 per cent of the value of the transaction exceeding 10,000,000 roubles, not more than 100,000 roubles

There are approximate tariffs, of which the difference in the amount of payment can be seen, and remember that, as a general rule, notarial certification of sales contracts is not required.

There are no other legal features of the procedure for the transaction through kinship, and the same rules and requirements apply to the preparation of the transaction, as in the case of outsiders:

• A contract of sale shall be issued;
• Sign the transmission document;
• The documents are submitted for registration;
• The apartment is paid for.

In the case of taxation, it is also irrelevant for the seller to whom the apartment was sold, and the sale tax is paid according to general rules.

The buyer will not be entitled to a tax deduction and will not be able to recover the NPFL by buying a home from a close relative.

Features of the treaty

The contract of sale between relatives does not have any close relationship characteristics:

• There is no need to specify in the contract the degree of kinship;
• notarized certification of such a contract is not required (only if part is sold or the seller is a minor).

The contract should specify the same paragraphs as are necessary in a transaction involving outsiders:

1. FIO, passport, address of the parties to the transaction;
2. subject matter of the contract: detailed description of the dwelling;
3. The price of the dwelling;
4. The order and duration of the transfer of the dwelling;
5. The manner and duration of payment;
6. Other terms, including the seller ' s guarantees;
7. An indication as to whether the seller ' s bond arises.

However, given the trustworthiness of the transaction, an act of acceptance or transfer to the contract can be avoided, and it must be made clear in the text of the document that the transfer document is not required:

"The parties have agreed that the present contract is at the same time an act of reception and transfer of the dwelling. The signature of the contract indicates the buyer's inspection of the dwelling and his agreement to accept the dwelling in the technical condition in which it is located at the date of signature of the contract."

If you make a transaction only for the kind of transaction, the transfer document is better signed; otherwise, the creditors of the debtor that "translated" the apartment to a relative will be easier to prove the identity of the transaction.

Grounds for challenge in court

It is not possible to dispute a contract in court on the grounds that it is concluded between close relatives.

If the seller or buyer has just changed their mind, you can't ignore it. Very often parents give their children apartments under a sales contract, hoping that they can still exercise control over real estate. This is fundamentally wrong.

The buyer becomes the full owner of the dwelling from the moment the right of ownership has been transferred, and he may dispose of the property at his discretion: to sell, to give or to bequeath; and the consent of close relatives is not required; and if you do not wish to transfer such authority to a relative,You'd better give up the deal.

Thus, it is possible to cancel a transaction in court on general grounds of sale:

1. Disbursement of the contract because one of the parties breached the terms of the transaction

This can be done before the parties fulfil their obligations: until the time of the transfer of the apartment, the payment of the dwelling or the State registration of the ownership right, whichever is later.

There's a good reason for judicial avoidance, for example, if the buyer avoids paying the rent.

1. To declare a transaction null and void if anyone ' s rights or requirements of the law are violated.

This option is possible if:

• The seller ' s wife ' s consent was not obtained;
• No authorization from the guardianship authorities (if the seller is a minor);
• No other owners are notified of the sale;
• The transaction is not certified by the notary if such certification is mandatory;
• The seller or buyer is incapable;
• The parents ' consent to the minor ' s transaction has not been obtained.

The action shall be brought by the person whose rights have been violated within the time limits and procedures established by the procedural law.

At times, transactions between relatives have signs of implausibility or pretence.Probable transactions do not produce effects – most often only on the type – for example, if the debtor has a lot of money and there is a risk of loss of real estate, these debtors quickly "change" apartments to their loved ones.

Pretty much covering up for the real deal, like when the gift covers the sale for tax avoidance.

If this is your case, remember that such transactions may be challenged through a court of law by the debtor's creditors or tax authorities.

Councils

1. If the transaction is formal, that is, the apartment is actually given free of charge, it is better to formalize the gift contract.
2. Take into account the tax consequences for the buyer - he loses his tax deduction.
3. An apartment purchased by the husband from relatives is also considered to be jointly acquired property of the spouses.
4. Set out in the contract the real price of the apartment in order to avoid tax trouble.