How to donate real estate: process, fees and precautions
Real estate gifting is one of the common methods of property transfer, and is especially widely used in intra-family asset distribution. In recent years, with the adjustment of real estate policies and changes in taxes and fees, the gift process has also received more attention. This article will analyze in detail the steps, required materials and related fees for real estate donation to help you complete the procedure efficiently.
1. Basic process of real estate donation
The following steps must be followed to ensure that the gift of real estate is legal and valid:
| steps | Specific content |
|---|---|
| 1. Sign a donation contract | After consensus, both parties sign a written gift contract, clarifying the property information and gift conditions. |
| 2. Notarization | Bring the contract and related materials to the notary office for notarization of the gift (compulsory notarization has been canceled in some areas) |
| 3. Pay taxes and fees | Pay deed tax, personal income tax, etc. (see the tax table below for details) |
| 4. Handle transfer of ownership | Submit materials to the Real Estate Registration Center to complete property rights transfer registration |
2. Materials required for real estate donation
The following materials need to be prepared when applying, and it is recommended to check in advance:
| Material type | Specific requirements |
|---|---|
| Proof of identity | Original and copy of ID card of donor and recipient |
| Certificate of title | Original and copy of real estate certificate |
| gift contract | Both parties need to sign for confirmation (can be notarized) |
| marriage certificate | If joint property is involved, a spouse’s consent is required |
| Other documents | Some areas require a property appraisal report |
3. Costs related to real estate donation
The main expenses involved in gifting real estate are as follows (taking gifts from immediate family members as an example):
| Expense items | Charges | Remarks |
|---|---|---|
| Deed tax | 3%-5% | Calculated based on the appraised price, some areas have discounts for immediate family members |
| Notary fees | 0.2%-1% | Charges based on property value tiers |
| personal income tax | 20% | Gifts from non-immediate relatives are subject to payment |
| registration fee | 80-550 yuan | The charging standards of real estate registration centers vary from place to place. |
4. Things to note when gifting real estate
1.Comparison of tax differences:There is a big difference in taxes between gifts and sales. Gifts from immediate family members usually have lower deed taxes, but they may face high personal taxes (calculated at 20% of the difference) when selling in the future.
2.Recipient eligibility restrictions:Under the purchase restriction policy in some cities, recipients must be qualified to purchase a house before they can handle the transfer.
3.Debt risk:If the donor has a debt dispute, the property may be pursued by creditors.
4.Special property types:Policy housing such as affordable housing and shared property housing may be restricted in gifting.
5. Comparative analysis of gifts and sales
The following table compares the advantages and disadvantages of the two methods for decision-making reference:
| Comparative item | gift | buy and sell |
|---|---|---|
| Applicable scenarios | intra-family asset transfer | market transaction |
| Current taxes | Deed tax + notary fee (immediate family members are exempt from personal income tax) | Deed tax + value-added tax + personal tax (the only one that can be exempted if you are over five years old) |
| Future sales taxes | Individual tax is levied at 20% of the difference | Individual tax is levied at 1% on the difference or the full amount |
| Procedure complexity | Notarization is required and the process is long. | Standardized processes and higher efficiency |
Conclusion:Real estate gifts need to take into account tax costs, family needs and future planning. It is recommended to consult a professional lawyer or real estate agency before proceeding to ensure that you choose the best option. Recently, some cities have piloted the "transfer with deposit" policy, which may further simplify the gift process in the future, which deserves continued attention.
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