How best to make an apartment: giving or buying to a relative, which is better than selling or buying an apartment

Often, when there is a need to hand over the property from hand to hand, the parties to the transaction cannot determine how best to form an agreement, either through a gift or through a sales contract, both of which have advantages and disadvantages.

Is it better for a close relative or a person who has not been in a close relationship to sell or give property? Let's try to determine what's best to do in this situation.

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What is a gift contract?

An apartment gift is a free deal.which is regulated by the Civil Code of the Russian Federation.

The main point here is article 572, which defines the gift, as well as the two sides of the transaction — the giver and the gifted.

The giver is a man who disposes of the share of his dwelling in favour of the gifted one. The gifted one, in turn, is the recipient of the gift.

It's very important thatA gifted person shall not acquire, together with a share in real estate, any obligations towards the giver.So it's not going to be possible to make a sale under a gift deal, and if you make an arrangement in this way, the return of money should only be agreed orally.

Article 574 states that a transaction must be registered; Rostreister does so; it is a public authority that amends the real estate register.

So all the agreements relating to the transfer of real estate from hand to hand, both gifts and sales contracts, must pass through this facility.

Without the Rosreestra seal, none of these deals will be considered valid.

• On our website, you can learn about the rules and procedures for the arrangement of an apartment through Rosreister.
• Article 575 identifies certain categories of citizens who cannot take part in the gift procedure on their own.for them, therefore, this option is completely deleted.
• These include:

• Minors and citizens who have been declared incompetent, as well as their officials acting on their behalf.
• Workers of educational, medical and social organizations.
• Officials.
• Commercial organizations that profit from the transaction.

But the tax code establishes a special and important role in this matter, and it obliges all citizens to pay a tax on profits.

The fact is, getting an apartment as a gift is considered a profit.Thus, the gifted person is obliged to pay 13 per cent of the cadastral value of the dwelling.But one important thing to note here is that the transfer of property between close relatives does not count as a profit, so if a gift is given to a brother or sister, parents, children, the tax will not have to be paid.

Attention!All others (uncles, aunts, nephews, cousins, etc.) are obliged to pay the tax in full.

It was also necessary to take into account the fact that 13 per cent of the tax was provided for residents of the Russian Federation; if the gifted person lived abroad, he would be subject to a tax equivalent to 30 per cent of the cadastral value of the dwelling.

Help!You can be a resident of the Russian Federation without Russian citizenship, but you can be a citizen of Russia and have a residence permit in another country, thus depriving you of the status of resident.

Another important feature is the ability to produceA preliminary gift contract.

In fact, it's a well-documented promise in the future to give the opponent real estate.

That is, it is possible to state in the contract that the apartment will pass the gifted place after a certain time has passed, or that an event will take place; this is very convenient, because it makes the treaty more flexible and creates new opportunities.

With the terms prescribed in the gift contract, you have to be as careful as possible, so there are two reasons.

The first is that if you overstep the conditions, you may be denied registration because you are considered to be inappropriate for a transaction to define as a gift.

The second reason is the possibility of fraud by the opponent, so it is recommended that a contract be drawn up with the notary.

Another important point:Since the gift is a free transaction, the dwelling obtained under it is considered to be personal property.This means that if a gifted person is married and given real estate, she will not become a common property.

What's a sales contract?

Unlike the gift deal, it implies that both sides are transferring material things to each other, but, as in the past, this procedure is regulated by the Civil Code of the Russian Federation.

The first paragraph of the Code sets out the general provisions; each aspect of the procedure is taken into account in a separate article, but in this situation we are only interested in certain features of the treaty and its positive and negative differences.

1. If the apartment has been owned by the seller for five years or more, it may not pay 13 per cent tax to the Stateas opposed to the gift transaction, when the gifted person has to pay for it in any case, this is evidenced by article 217 of the Tax Code of the Russian Federation.
    
    

   While the sale after the receipt of the gift may take place without a tax on the seller in three years, it is possible to resell it quickly through the gift dwelling.

2. Unlike the gifted one,There are far fewer loopholes in the treaty through which third parties can cancel it.
3. As mentioned earlier,commercial organizations may not participate in the gift procedureHowever, under a sales contract, real property could be transferred between both natural and legal persons in order to ensure that companies did not circumvent the law through a gift procedure, so that, if it was necessary to transfer property to an organization, they would have to operate through a sales contract.
4. Unlike gifts in which the transferred property is considered personal,If the buyer acquires a dwelling during the marriage, it is deemed to be jointly acquired propertyThis may result in the spouses not being able to share the apartment peacefully in a divorce, so if you want to give accommodation to only one particular person, it would be better for the gifted one.
5. Article 250 of the Civil Code of the Russian Federation gives other owners the primary right to purchase a share of the dwelling.I mean, if you only have a share in the apartment and you want to sell it, it's not the fact that you choose your own buyer.
    

   You can't sell your share to someone else if one of their owners wants to buy the rest of it, and the sale will take place at the price you offered to your buyer.

6. The sales contract is much more difficult to challenge in court.As a result, it is hoped that the rights of both parties will be better respected.

What's better?

The answer to the question of what is best served by giving or selling an apartment depends entirely on the particular situation, because in some cases, by law, it will be easier to do it through the gift and in others through the sale. Most often, the main factor is the one between whom the transaction takes place.

A close relative.

If you've decided to give the apartment to your close relative, there's not much difference in most cases as to what kind of deal it's going through.

After all, even when given, it is not necessary to pay 13 per cent of the tax, since the property is transferred within the family and is not considered as income.

However, it is preferable to sell an apartment, not paying a tax, in three years ' time, but a buyer in five years ' time, especially if the recipient is married, under a sales contract you will actually give the dwelling to a couple rather than a particular person.

To a man who has not been brought into a close relationship

And if you give a gift to a near relative, it is better for you to make a contract of sale, even though it is less than it is; and if you give a gift, it is better for you; and if you give a gift, it is better for you; and if you give a gift, it is better for you; and if you give a gift, it is better for you; and if you give a gift, it is better for you; and if you do not give a gift to a near relative, then it is better for you; and if you give a gift, then it is better for you; and if you give a gift, then you do not give it to a near relative; and if you do not give a near relative, it is better for you; and if you do not give a great loan, then you will not be able to pay a great price; and if you do so; and Allah is All Knowing, Most Merciful.

In particular, it is better to go on the sales route if the gifted person subsequently plans to sell the property received; then he will have to pay the tax twice; but if two sales contracts are issued, the tax will not be required at all.

But there's a trick here if you're planning on handing over property to a distant relative.This can be done through two gifts through a relative who will be close and gifted and gifted.

For example, the aunt wants to give the apartment to her nephew, and then the gift to her sister (the mother of her nephew), and then the mother prepares the gift to her son (the sister's niece).

So, depending on your situation, you can decide which contract is more appropriate for you.

Strengths and Weaknesses

As stated earlier,The strength of the sales contract is that it is more difficult to avoid.It's a clear plus for the recipient of the property.

However, the gift contract is the one that is meant for gifts, so it is easier to process through it.

On the other hand, if a giver fears that his rights will be violated, it is better to sign a treaty of giving, for it can be revoked, though it is very difficult to do so.

Another reason for choosing a gift contract is to be able to assure a notary of a document in the form of a gift.I mean, a notary witness to the validity of a transaction can confirm that everything went according to the rules and testify in court, unlike when a gift is processed in the form of a sales transaction.

As far as taxation is concerned, both the first and the second options can be chosen in different situations in order to make as little contribution as possible to the State.

Comparative findings

It's very difficult to tell exactly what kind of treaty is best chosen. It depends on a lot of different factors. It's best to weigh everything for and against each method and choose the best one.

It's important!Remember, when you process a sales contract, you cover it for another deal, not a legitimate alternative.

Useful Video

You can view what is best to choose, whether it is a gift or a sales contract, by video below:

The nature of the gift varies, and how best to do so depends on the situation and the relationship between the parties.

A giving or selling contract — What's better?

To avoid spending money on lawyers as well as saving your time on visits to professionals, you can carefully address these issues in order to deal with a particular situation — what is better — a gift or a sales contract?

What are the gifts and sales contracts?

Donation agreementis a transaction between two parties: the giver and the holder of the title free of charge.

Sales contract- a transfer transaction between buyer and seller whereby the buyer transfers a certain amount of money to the seller for transfer of rights.

Accordingly, the main difference between a gift and a sale is that a gift is a free procedure, and a sales contract is a payment transaction, but this does not end with differences, because each transaction has its advantages and disadvantages.

Giving — Several Good Counsels

In choosing what is best — a contract of gift or sale — it is necessary to deal with the characteristics of each type of transaction.

The Treaty of Gift and its Best Parties:

• If the transaction is made and signed by the spouses or blood relatives and the estate is in the possession of the giver for any period (less than or more than 3 years), the 13 per cent tax of the NPFL on persons shall not be withdrawn; the property will not be taxed when the gift is issued only when a document proving that the parties to the transaction are related is provided.
• The treaty of gifts signed by the parties does not necessarily satisfy the notary, although experts recommend it.

In spite of the benefits, the gift contract has its own disadvantages, because it is worth choosing not only what is cheaper, but also what is more reliable in terms of your rights.

Disadvantages of the gift contract:

• If the gifted person sells property less than three years after the gift, the gifter is obliged to pay a 13 per cent income tax on the value of the real estate itself.
• If the person who gives the property and the person who receives it does not have affinity, then the income tax shall be paid regardless of how many years the property was owned by the giver.

The following documents are collected to process the gift transaction:

1. Document containing information on the existence of property rights.
2. A statement from the recipient requesting that the transferable right to real estate be re-registered.
3. If the contract has been drawn up in writing, without confirmation from the notary, it is important to provide the originals of the document in the number of parties that have signed it; they will be handed over to the authorities for State registration; there is also a need to have another original that will become a legal document.
4. If the gift contract is certified by a notary, originals must be provided by the number of preparers of the transaction, plus one copy of the contract.
5. An extract from a technical passport from the BTI.
6. Once the documents have been collected, they must be transferred to Rosreister to register the transfer of ownership.
7. If real property is transferred by giving a person under 14 years of age, permission from parents or guardians is required, which confirms that he or she is authorized to accept the property.

In granting a share of the property in order to register the transfer of this right, consent must be obtained from persons who own other shares of the property; in transferring the right to property in the context of the transaction, the property obtained will not become the common property of the spouses.

Note that, at the time of the issuance of the gift agreement, the notary must verify the existence of an arrest, a tax bond, or a mortgage.

Sales contract -- what you need to know

• If the seller is married, he/she must be authorized to sell by the spouse.
• If the buyer is married, the property purchased by one of the spouses is deemed to be property acquired jointly.
• The buyer has a one-time right to a tax deduction from NWFP for the purchase of a real property, as it incurs the cost of buying a dwelling.
• If the property sold has been in possession for less than three years, it must be sold at 13 per cent of the value of the property sold (NPFL tax).

An important advantage of a sales contract is the simplicity and speed of the transaction.If, for various reasons, the contract is declared null and void, then all the expenses it has spent in the process of concluding the contract shall be returned to the buyer.

What data should the sales contract contain:

• Information on real property — location, space, cadastral number, floor space, etc.
• Information on the parties to the transaction - F.I.O., passport data, address of residence, citizenship, etc.
• The contract should also contain a clear price to be paid by the buyer to the seller under the contract.
• The gift contract specifies the same data, i.e. the identification of the object of the real estate and the parties to the contract, with the exception of the price.
• If any conditions for the conclusion of contracts are not met, the treaty shall have no legal effect.

In considering whether it is best to give or buy an apartment, the lawyers consider the second procedure to be more reliable, but it has a lot of nuances, as well asIt'll cost the seller extra tax..

Note that all legal nuances should be discussed in advance with an experienced lawyer who knows all the amendments to the laws introduced in 2023.

If you are a relative, you should know that the gift is cheaper for both parties than the contract of sale, but only if you are a relative.

It is therefore worth taking a responsible approach to this decision: in the case of the transfer of property between relatives, the transfer of rights by means of a gift is more advantageous; in all other situations, it is necessary to weigh all pros and cons, including the number of documents to be prepared, the amount of taxes to be paid, and other legal features.

Video: Gift or Sales Contract — What's the best thing to do?

How best to make an apartment – giving or selling to a relative – special features of property transfer transactions

The law defines two possibilities of transferring property to other people's property. You can sell your property, or you can give it, which is better: a gift or a contract of sale is a controversial issue. Each option has its merits and disadvantages.

What's the difference between a gift and a sale?

To understand their differences, it is worth defining each type of transaction.

A gift contract is a free-of-charge transfer of property to another person, which is the main feature of a gift.

The purchase order is the transfer of property in exchange for a certain amount of money, and the new owner will only be able to take ownership after he has transferred the entire amount to the seller.

In order to avoid unlawful actions to force persons to transfer property, there are a number of restrictions on the gift.

• Public servants;
• Social workers;
• Medical staff.

There are no such restrictions for the purchase of an apartment or other property.

Another difference relates to the type of documents that are issued, the sales contract can only be processed in writing, no matter who the recipient of the property is, even if it's a relative.

You can give things that do not cost more than 3,000 rubles on the basis of an oral agreement, and more expensive assets are also to be donated on the basis of a written agreement.

But if the gift is processed between the next of kin, there's no tax on the transaction, the sale will pay the tax in any case, but the buyer will be able to collect the tax deduction if the seller is his relative.

Sales contract of advice in presentation: advantages and disadvantages

Because of their differences, a gift contract and a contract of sale have advantages and disadvantages, but in order to take advantage of these advantages and avoid problems due to deficiencies, a number of requirements for the issuance of contracts for the transfer of property of both types must be taken into account.

Buying is one of the most popular forms of property transfer.

• It is not necessary for a notary to certify it in writing, but it is worth doing so for additional guarantees;
• The contract of sale shall contain all the passport data of both parties;
• A detailed description of the property transferred is required, if it is an apartment, its area, address, condition, technical and registration documents;
• It is necessary to indicate which legal documents the seller holds at the site;
• Value should only be indicated in rubles (figures and inscriptions).

The merits of a sales contract in its reliability and the possibility of a tax deduction.

Minutes of purchase:

• If the seller owns the property for less than three years, the seller must pay the NPFL for the sale;
• He must obtain the consent of his spouse if he is married or other owners, if he owns only part of the common property; such consent must be confirmed by the notary, which requires additional expenses.

Tax on the sale of an apartment

When selling an apartment to any person, including a relative through sale, the seller must pay a tax of 13 per cent of the real estate value.

But if he sells property that he has owned for more than three years, then the law exempts the seller from such a tax; however, this applies only to property acquired before 2016; but if a person receives it later, he may be exempted from the tax only if he sells after five years of possession.

Three or five-year periods are calculated as follows:

• From the privatization process;
• If real estate is obtained on the basis of a contract of life rent with a dependency, from the time of the conclusion of the contract;
• Upon accession to inheritance rights;
• If the object is received as a gift, from the time it is signed as a gift.

Features of the design of the gift contract

An apartment or a sales contract – what's best? To answer that question, you need to compare the merits and disadvantages of the buyout with the characteristics of the gift contract.

In the form of such a document, it is necessary to:

• Enter all data of the giver and recipient of the gift;
• Details of the object of the gift;
• Documents that give the giver the right to dispose of the property.

Such a gift contract may not, however, contain additional conditions in relation to the gifted one.

The recipient of the gift will be granted property rights once the property has been registered in Rosreister.

The benefits of the gift contract are as follows:

• Simplicity of presentation;
• There is no need to pay a tax if the gift is concluded by close relatives;
• The gifted property will be considered the personal property of the recipient, and his/her spouse cannot claim a share in it.

Minutes granted:

• It's hard to argue;
• Absence of benefit to the giver;
• They may be declared invalid if the gift was not made in accordance with the requirements of the law.

What's better and easier to get, gift or buy-sell?

It's better for relatives than buying and selling, but it's subject to trust between them, and there's no fear of potential disputes in the future.

In the event that there are no such problems, giving between relatives will save money (not needing to pay a tax), allow the joint use of property, and do not need to obtain the consent of third parties to enter into a transaction.

In the case of a transaction between other people, it is preferable to buy and sell, and this arrangement allows for the reconciliation of all the nuances, including avoidance situations.

Effect in the formulation of a gift contract instead of a sales contract

Sometimes, under the guise of a gift contract, a purchase or sale is made; such a transaction may be declared invalid; any interested person may request the cancellation of such a transaction.

What's cheaper?

It's a controversial question, and it's cheaper if he's imprisoned between relatives, otherwise you have to pay a tax.

As for the general fee in favour of the State, it is 2,000 rubles in the case of a gift, and 1,000 rubles in the case of sale.

But when selling real estate, which was recently (less than 3 years ago) transferred to the seller's property, he will pay a 13 per cent tax.

It will also be more expensive to process documents in transactions between outsiders.

What documents to prepare

A package of documents is similar in the form of a gift and in the case of a sales contract.

• Passports;
• Law-making instruments;
• A certificate of ownership;
• Statements from the cadastre and the home book;
• Technical passport to the ground and structure.

If no documents were available, the treaty would not be registered in Rosreister, but would allow time to collect the remaining documents.

What includes a sales contract?

The main paragraphs of such a document should contain:

• Passports and addresses of the parties to the transaction;
• Detailed information on the subject matter of the transaction, describing its characteristics on the basis of documents as well as on the basis of an inspection;
• An indication of the documents that authorize the sale of the facility;
• Description of the terms of avoidance;
• Responsibilities and rights of both parties;
• The sum of the transaction and the information on the deposit;
• The signatures of the parties to the transaction and the date of its conclusion.

Risks of a contract of sale

The main risk may be the fraudulent conduct of one of the parties, and problems may arise if the contract is not properly drafted.

To avoid such consequences, it is necessary to:

• Carefully check all documents. Ensure that the necessary list is collected in its entirety;
• Make sure the seller's on the deal, if it's a trusted person who's in his place, check the trust by calling the notary office that gave it up.
• Don't give me a big deposit, and make sure it's in the contract;
• To enter into a preliminary contract of sale as well as a transfer document after the signing of the main purchase order.

In case of doubt, it is better to seek the assistance of lawyers or notaries, so that the contract of sale or gift will be made in accordance with the requirements of the law.

How best to book an apartment giving or buying a sale to a relative, which is better to give or buy an apartment

The Main "Bought-Sales of the Apartment "How best to make an apartment a gift or a sale to a relative

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Any real estate transaction has its own characteristics and potential problems: it concerns both the donation of an apartment and its sale/purchase. Which option is best used in different situations - consider in this article.

Benefits and disadvantages of the gift contract

The gift contract, based on article 572 of the Russian Civil Code, involves the transfer of an object (in this case an apartment) by one person to another.

However, such a document does not provide for any compensation or the need to provide a response.

Consequently, if such a system were to be used instead of a sales contract, if the buyer did not perform its obligations in good faith, it would be impossible to prove anything in court.

Consider the advantages and disadvantages of the gift contract:

Benefits Deficiencies

A simple enough treaty in writing and in free form, it does not require notarization.	A gift contract may at any time be unilaterally terminated by the giver.
The gift is the property of one person, to whom it was given, which means that the gift is not subject to the rules of the common property of the spouses.	In some cases, the gift contract may be challenged by a third party.
If the recipient is a close relative, there is no need to pay the NPFL.	Any person who is not a close relative should still be paid by the NPFL when giving an apartment.
The new owner of the gift immediately takes possession of the gift without any delay.	The grantor shall not be entitled to claim any property of the recipient of the gift, even if the parties so agree.

The gift contract should be seen as an option to give an apartment to another person only when it is really relevant. Moreover, it makes sense if a transaction is made between two close relatives. In all other cases, the NPFL still has to be paid, so even as an option to circumvent the tax system, it is not appropriate.

Benefits and disadvantages of the sales contract

The main feature of any sales contract is the well-defined conditions under which one person transfers an apartment, house or any other property to another, thus ensuring not only that all parties to the transaction have a clear understanding of all its features, but that both parties are guaranteed to do so.

Benefits and disadvantages of the sales contract:

Benefits Deficiencies

Under certain conditions, tax deductions can be made.	If the buyer is married, the apartment purchased by such a contract will be considered jointly acquired property.
It is possible to conclude a preliminary contract and then, after signing, to issue an additional act of reception and transfer.	The seller is obliged to pay NPFL regardless of who is the buyer.
The likelihood that the sale transaction will be able to be challenged in court is significantly lower than the gift contract.	Priority rights for the purchase of other persons ' housing should be taken into account.

In addition to the above, the contract of sale involves a notarization, which means that such a document would be much more expensive than a gift.

On the other hand, the ability to identify all the characteristics of the transaction, the rights and obligations of the parties, the penalties for non-compliance and so on significantly reduces the risk that the transaction will fail or be declared invalid.

Which is better and better than giving or buying an apartment.

By comparing the main points that may also be important in a given situation and may also affect what to choose: a contract of giving or selling:

• PartiesAny person, even a minor, may sell an apartment (with permission from the guardianship authorities), and only capable adults may provide a dwelling.
• ResponsibilityIn the case of a sale, all the terms of the agreement can be determined in advance and, in the future, the terms of the agreement must be strictly complied with; the gift treaty does not provide for any additional conditions other than basic ones: the giver may cancel the contract and the gifted person has the right to refuse the gift.
• Real property pricesIn the case of a gift contract, the value of real property is determined on the basis of its price, as determined by the valuation company or in other documents, and the parties may determine the price to which they will be entitled when the contract of sale is concluded.

If the price is too low or, on the contrary, too high, the transaction may be challenged in court as invalid; moreover, a significant deviation in the value of the dwelling from its real market performance significantly increases the risk to both the seller and the buyer.

Example:Suppose the buyer agrees with the seller that the contract indicates the value of an apartment of 10,000 rubles in order to pay less taxes, but in fact the transaction will be in the amount of 3 million rubles.

Once it had been properly processed and the money had been handed over, the seller could safely go to court and say that he had been deceived and, in general, "not himself" when he signed a contract for such a small sum.

As a result, it is very likely that the transaction will be declared null and void and that the seller will receive both 3 million rubles and his apartment back. It will be unrealistic to take the money from him because it was not included in any document.

In both cases, it is assumed that such circumvention is carried out in order to circumvent the rights of others; as a result, there are always those interested in strict compliance with the law.

It is they who can apply to the court to declare the contract of gift or sale null and void, thereby automatically abolishing all property rights that have arisen since the signing of such documents.

It is almost impossible to avoid such problems, therefore, the best option would be to adhere to existing legislation and to use both types of contracts for their direct purpose, when it is indeed a gift or, perhaps, a purchase or sale.

Any real estate transaction is a risky a priori; fraudsters constantly devise new ways to deceive both potential buyers and buyers of dwellings; it is almost impossible to deal with them without knowing all the subtleties of the transaction and the specific features of the law; experienced lawyers at free consultation will explain the main points of contention that may arise in a given situation; and in order to completely exclude risks, specialists can act as representatives of the client by taking over all communication with the parties concerned.

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What is more beneficial — gift or sale?

zoomingfoto1712/Fotolia

The legal adviser to the Legal Services Centre, Seda Tóplakalqian, answers:

The main difference between a gift contract and the sale of real property is that it is free of charge.

Benefits of the gift contract:

1. Lack of obligation to pay personal income tax18.1, para. 18), these are parents and children, grandparents, grandchildren, brothers and sisters.
2. Reduced waiting period for subsequent disposition under the contract of saleIn the subsequent sale of donated real property, NPFL should not be paid in three years (art. 217.1, para. 3) and in the case of a contract of sale, in five years ' time.
3. In the award of a share of real estate, there is no need to comply with the rule of priority right to purchase by other partnersWhen concluding a sales contract, the rest of the parties to the joint property have the primary right to purchase the share (art. 250 of the Code of Criminal Procedure).
4. The gift contract may be terminated by the giver in a legally defined case.Thus, if a gifted person has attempted the life of a giver, the life of a member of his family or close relatives, or deliberately caused bodily harm to the giver, he has the right to cancel the gift (article 578 of the Code of Criminal Procedure).
5. Property transferred under a gift contract during marriage is not subject to the common property regime of the spousesReal property is the sole property of a spouse who has received it as a gift (article 36 of the Code of Criminal Procedure).

• Real estate in 5 questions and answers
• 5 main facts about the housing contracts
• The main drawbacks of the gift contract are:

1. When entering into a third-party gift contract, NPFL must be paidThe value of the donated assets is 13 per cent.
2. The gift contract is easier to challenge in court.and declare null and void.
3. Donation between commercial organizations prohibited(art. 575 (1) of the Russian Civil Code).
4. Tendering of property in common joint property is permitted only after the consent of all partners has been obtained(article 576 of the Code of Criminal Procedure).
5. Possible cancellation of the gift treaty(Less for gifted persons) (article 578 of the Code of Criminal Procedure).

Benefits of a sales contract:

1. The seller is exempt from payment of NPFL if the property is owned for at least five years(for objects that have been acquired since 1 January 2016 (art. 217.1, para. 4).
2. The contract for the sale of real property contains fewer conditions for the cancellation of the transactionby third parties.
3. The parties to the transaction may be both natural persons and legal persons.

Disadvantages of the sales contract:

1. Long waiting period for subsequent sale without NPFLFive years.
2. Real property acquired under a contract of sale during marriage,Common joint property regime.
3. Predominant right to purchase from other partners when selling a share of real propertyIn particular, when selling, it is mandatory to notify the co-conspirators in writing of the intention to sell their share, as well as the co-conspirators have the right to buy at the highest price offered by a third person.

Thus, in each individual case, a number of circumstances must be taken into account in the disposition of real property under the gift or sale contract in order to choose the best and most advantageous option for transfer to property, such as the existence of a related link, the period of ownership, the basis for acquisition, etc.

Tax on the sale of an apartment: rules and examples

Can I issue two gifts so I don't pay the tax?

The experts from the online study on the sale and sale of apartments of the apartment, "Authority-without-Agenta.ru", respond:

The benefits of the transaction are not the same for different purposes. You can refer to the "benefit" of convenience and the legal consequences of the transaction for the current owner of the dwelling or for the future (they will have different "benefits"). A gift contract, like a sales contract, a two-way transaction, and what benefits one may not be beneficial to the other.

The purpose determines the benefit. For example, the purpose may be to conceal the income from the sale of an apartment by replacing it with a gift contract. Accordingly, the "benefit" will be assessed from this position.

The purpose may also be to secure the dwelling (in the form of a gift or sale) when the physical person issues a loan to another physical person.

The aim may be to invest in real estate and obtain tax preferences.

But let's venture to assume that this is just about taxes, so the question is, in what kind of deal a gift or a sale is going to have to pay less taxes on both sides of the transaction.

In the event of giving the dwelling to a close relative, there are no tax consequences for both parties to the transaction.

But if an apartment is given to an outsider, the gifted person falls into the NPFL tax: minus 13% of the value of the apartment, because, from the point of view of the tax people, he has earned a substantial income and has to pay the tax to the state, and the giver naturally owes nothing to the budget because he does not receive any income.

By the way, the law includes the following members of the family: spouses, children (including adopted children), parents, grandparents, grandchildren, brothers and sisters (including singles).

In the case of the sale of an apartment, the situation is not the same: the income is already earned by the seller and must be paid the same 13 per cent of NPFL ' s tax; however, the State provides the seller with a range of benefits in the form of tax deductions for the sale of the apartment.

In other cases, the seller may reduce its tax base by only 1 million roubles (tax deduction) and is required to pay the remaining amount to NPFL 13 per cent.

The buyer, in the case of sales, naturally does not pay the tax, and on the contrary, is able to recover part of the NPFL that he pays to the budget from his current income (including his salary).

So you can sum up: if a transaction takes place between relatives, it's better for both sides to give an apartment (if there's no purpose to take money from a relative). If a transaction takes place between outsiders, it's better to sell an apartment by applying tax deductions to it.

Documents when buying an apartment: see, sign, get

What kind of taxes do I pay when I sell?

According to S.A. Ricci's lawyers, real estate:

If you are the owner of an apartment, it is more cost-effective for you to issue a gift, since if you sell, you will have to pay income tax (13% of the amount specified in the sales contract).

On the other hand, if the person you are giving is not your next of kin, the tax of 13% of the rent will already have to be paid to him.

The only case in which no one will have to pay a tax is if you arrange a gift contract for a close relative (the first degree of kinship).

In addition, the gift contract has additional benefits. By providing housing, you guarantee that it will remain in the sole property of the gifted person in any development of the situation.

When a sales contract is concluded, it is possible, for example, that the apartment will become his/her joint property with his/her spouse and, in the event of a divorce, it will have to be shared as joint property.

If you give an apartment, you can stay in it if you want.

In the case of a contract for the sale of real property, you may lose your right of residence if the new owner wishes to sell it again (if you are not a person who is entitled to the permanent use of the privatized dwelling and who is not discharged from it at will) and, in general, the procedure for the issuance of the gift is easier than the procedure for the processing of the contract for the sale.

According to counsel Sergei Mirzoyan:

This is a frequent issue at the legal consultation; these treaties have different purposes, and one treaty should not be used as a cover for others; such treaties are referred to in law as pretense treaties.

In the case of a contract of sale disguised as a gift and in the case of a contract of surrender covered by a sale, there may be adverse consequences for the parties.

Another example is that by signing the sales contract under which the gift contract is based, an unfair giver can challenge the sale contract as a fake transaction and prove that the money was not actually transferred and could not be transferred.

The Director-General of the Interregional Housing Programme, Moving to Petersburg, and the Director-General of Real Estate in Petersburg, Nikolai Lavrov, is responsible for:

Tendering involves a free transfer of ownership; buying and selling is a transfer for a certain amount of money.

If the gift is made between close relatives, there is no gift tax.

If an outsider, the gift tax will be 13% either of the cadastral value of the real estate or of the amount specified in the gift contract (whichever is greater).

The sales contract is distinct from the fact that the seller and the buyer are able to deliver any amount appropriate to them; the cost of the contract of sale (unless it is not a notary) is independent of the amount of the contract.

If the object sold is common property, both gifts and sales must be notarized; the cost of the notary ' s services is calculated according to the formula and depends on many factors.

Mostly, however, it is close to 0.5% of the value of the dwelling specified in the gift or sale contract.

If the value of the contract is deliberately underestimated, the notary may calculate the value of the services according to the estimated or cadastral value of the facility; thus, the value of the award and sale contracts is approximately the same.

However, the buyer of the dwelling acquires an income tax credit of 13 per cent for a purchase not exceeding 2 million roubles.

So if an apartment is purchased for 2 million roubles or more, the new owner will receive 260,000 roubles from his paid income tax for several years.

1. Text prepared by Maria Gureeva
2. Don't miss it.
3. All materials under the heading "Good question"
4. What should be done after the contract of sale has been concluded?
5. What nuances do you need to know about the tax on the sale of an apartment?
6. Can I sell the place to myself?

The articles are not legal advice; any recommendations are a private opinion of authors and invited experts.

What is best between relatives is a contract of giving or selling.

In planning for the transfer of property, there is always the question of how to process a transaction, which is best between close relatives: a contract of giving or selling.

There is a significant difference between these concepts: the gift contract implies that the property is handed over to another owner without payment, free of charge, and the purchase and sale involves the transfer of property for annoyance or the indication of such remuneration in the text of the contract.

If relatives decide among themselves what is best: to sell an apartment or to give an apartment, they should know how to conduct both procedures, the pros and cons of each of them.

Features of the design of the gift contract

A distinctive feature of the gift contract is the absence of any remuneration from the gifted one; if such a condition is breached, the contract may be challenged or cancelled.

The obvious advantage of a gift contract between blood relatives or spouses would be the absence of a tax requirement for 13 per cent of profits on the purchase of real estate.

Regardless of the number of years of ownership (3 years before 2016 and 5 after 2017), the NPFL will not be taxed.

A prerequisite for such a transaction is the existence of certificates and documents confirming affinity.

Assigning a gift contract to a notary office is a requirement that is not necessarily recommended by experts.

In choosing what is best between relatives, a gift contract or a sales contract, preference should be given not only to one that is cheaper in terms of registration and taxation, but also to one that is more reliable in terms of the issuance of ownership rights.

Delays arising from the formation of a gift contract

1. In the absence of related ties between the parties to the real estate transaction, the NPFL tax will be taxed regardless of the time of ownership of the property.
2. The gift contract is easier to challenge than the sale contract:

• If the gifted person gives the gifter the reward.
• If the giver is an elderly person or has a mental disability or a serious illness.
• If the giver has other blood relatives who may be the heirs of the first line and disagree with the execution of the gift deal.

Necessary package of documents for the gift contract

1. Certificate of ownership of the transferred property.
2. An application for a transfer of ownership to a gifted person.
3. Written gift agreement.
4. A discharge from the BTI with a technical passport.
5. If the gifted person is under 14 years of age, the consent of the guardians or parents to accept the gift.

The package of documents collected is submitted to the Rostreestra authorities to process the transfer of ownership of the new person.

Within the prescribed time frame, the right is re-established and the new owner can obtain a certificate from the real estate transaction register that the property belongs to him.

If the right of ownership of the property is transferred by a giftee, the gifted person referred to in the contract will be the sole owner; whether or not the gifted spouse or children have the right to own the property, the object shall not be registered as a common family property.

Features of a contract of sale between relatives

Unlike the gift contract, acquired property will be the joint property of the spouses, a certain amount of money will have to be made.

Adds to the sales contract

• Rapid processing (if the purchase takes place without credit).
• If the transaction is cancelled or challenged, all funds spent by the buyer will be returned within the prescribed time limit.
• The buyer may issue a tax deduction for the purchase of real property, including interest on the mortgage, if any.
• It is possible to draw up a contract with a large number of rights and opportunities for each party to the transaction.

Which includes the contract of sale

1. Information on real property is the area, location and other technical characteristics.
2. Data on the identity of the seller and buyer.
3. The value of the property sold is clearly stated.
4. Rights and obligations of the parties, amount and manner of fines for improper performance of duties.
5. Other essential conditions.

• More details on family-to-family transactions in the video:
• A sales contract would be better formed if relatives were not blood - it would reflect not only the substantive terms of the contract, but also the obligations of the parties, and would help to recover the money spent in the event of its dissolution.
• A gift transaction between blood relatives or spouses would not be taxed on the income of natural persons, but could be challenged in contentious situations.
• Thus, in choosing whether to sell an apartment or give an apartment, the owner must determine for himself the extent to which he or she trusts the person to whom the right to the facility will be transferred, the degree of relationship with him or her, if necessary, the extent of the contract of sale, indicating a wide range of rights and obligations.