Nowadays, many people write their children's names on the real estate license in order to avoid possible inheritance tax in the future. However, in fact, this practice also has disadvantages.
Disadvantages of writing children's names in real estate licenses;
First, children who buy a house independently may have to pay more down payment.
Second, children who buy a second family suite after marriage may have to pay property tax.
Third, if a child has an accident after marriage, the spouse has the right to inherit the property before marriage.
In addition, the following items should also be known in advance when parents write their children's names on the real estate license.
1. You can avoid the taxes and fees for future transfer.
Buying a house in the name of a child can really avoid some taxes and fees. "This method does not involve the transfer of ownership, so it will not be regarded as a gift, and there is no need to pay taxes such as deed tax." The gift of real estate between immediate family members requires a deed tax of 3%. And if parents put the property right of the house directly under their children's name when buying a house, there is no problem of renaming it, so this tax can be saved.
Minors can't borrow money from banks.
Although minor children can buy a house alone, they have no ability to repay their debts. The object of bank loans is a natural person with full civil capacity, so minors can't take bank loans when buying a house.
Parents with limited financial strength may wish to try to treat their parents and children as buyers with the same name as their children. In this case, the parents applied for a loan from the bank, made a mortgage commitment, handled the repayment for their children, and assumed the notarization of joint repayment responsibility.
It is necessary for minors to sell their houses in line with their interests.
The state protects the property of minors very strictly, so it may be more troublesome to transfer the house. The guardian must produce a statement that the house is sold for the benefit of minors, and must provide a certificate signed by the guardian to ensure that he is qualified as a guardian before selling the house in the name of minors.
Parents have no right to dispose of real estate when they are adults.
Although the property was purchased at the expense of parents, the children have the capacity for civil conduct when they grow up and can only dispose of the property themselves. If you want to sell the property, you must have the written authorization of your children to express your willingness to sell the property, which will be handled by Huang's parents and notarized.
5. When buying a house, it is required to submit the household registration book or birth certificate.
The process of minors buying a house is basically the same as that of ordinary people, except that some additional materials need to be submitted in addition to the normal housing transaction registration procedures. One is the child's household registration book or birth certificate, and the other is the guardian's identity certificate. If there is only one guardian, a notarized guardian certificate must be provided to prove his sole guardian qualification. After preparing the above information, you can go to the Housing Authority to go through the relevant registration procedures and register the property in the child's name.
6 parents divorced, the right to income belongs to the dependents.
Legally speaking, the house of a small business owner belongs to the small business owner and does not belong to the common property of both husband and wife. When his parents divorced, neither side could share the house. But from the perspective of custody, whoever gets custody of the children will get the right to use the house and the right to income.
(The above answers were published on 2015-11-25. Please refer to the actual purchase policy. )
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