How to refurbish an apartment

The simplest ways to re-register property

If the apartment has a low market value (less than 1 million) or has been owned by the owner for at least five years, then its alienation is not subject to tax. In this case, you can safely draw up a purchase and sale agreement, since such a transaction will not be of interest to the tax authorities.

It is important to know: Who manages federal property

However, the most reliable and fastest is still a gift agreement. It can be appealed by relatives whose inheritance rights were affected by the deal, but if all legal procedures are followed, it will be difficult to declare the agreement illegal or void.

The timing of the transfer of rights under donation and sale agreements is the same, since they depend only on the services of a notary and the execution of documents at the state registration authorities. However, a gift deed is not only cheaper, but also safer.

Where to contact?

After going through the procedure of signing contracts with a notary, the parties to the transaction must immediately contact the body that carries out state registration of rights to real estate. These are territorial divisions of the Federal Service for State Registration, Cadastre and Cartography of the Russian Federation.

Documents can be submitted to the MFC, where they will be checked, accepted for consideration, and transferred to the desired organization. At the appointed time, the right to the property will pass to the new owner. A certificate of ownership should be obtained from the authority where the documents were submitted.

If any claims arise regarding the submitted documents, the transfer of rights will be denied. Then you'll have to start all over again.

Terms of transfer of rights to real estate

Since the laws do not have standards defining the difference in the procedures for transferring rights to real estate based on kinship, the re-registration of an apartment into the ownership of a relative occurs on a general basis. Purchase and sale or gift agreements do not include a relationship clause because it has no procedural significance.

The degree of relationship matters only when collecting taxes and inheriting by law. The only circumstance that speeds up the process of transfer of rights is the degree of trust of the parties to the transaction.

The apartment was privatized in the 90s - is it necessary to re-register the documents?

If housing is privatized but not registered as ownership, the citizen is not recognized as the legal owner of the property. It is important that rights to an apartment that arose before January 31, 1998 have full legal force without registration. Mandatory state certification of the powers of the owner of such real estate is carried out at his personal request (Article 69 of the Federal Law of July 13, 2015 No. 218-FZ). Example Citizen R purchased an apartment in April 1997, in October 2000 he decided to sell his home, having collected the necessary documents, he and the buyer went to the local branch of the Federal Service for State Registration, Cadastre and Cartography (Rosreestr). The transfer of ownership was refused due to the fact that the privatization agreement did not have a stamp confirming the registration of the document. Moreover, in accordance with Art.

This is interesting: What documents are required for privatization before 1998

Price

If we approach the concept of cost comprehensively, then the costs of transferring rights to an apartment to a relative consist of:

• costs for notarization of the contract (indicators vary, but on average the amount can fluctuate around 5,000 rubles);
• payment of state duty (on average 2000 rubles);

As follows from Article 217 of the Tax Code of the Russian Federation, participants in the transaction who are members of the same family or close relatives are exempt from taxes when donating real estate. This article contains a reference to the Family Code, which defines the concept of “close relative”.

According to this law, close relatives include:

• spouses (husband, wife);
• children (natural and adopted);
• parents;
• grandparents;
• grandchildren;
• brothers and sisters.

Thus, it is better to choose the form of transfer of rights to real estate on the basis of tax exemption. If the apartment should go to a close relative, then it is more logical to draw up a deed of gift. It is preferable to conclude a purchase and sale agreement with relatives not included in this list. Sometimes multi-stage gift schemes are used from one relative to another. The main thing in the process of re-registering real estate to a relative is knowledge of the laws and their strict implementation. With this approach, it will be possible to transfer real estate with minimal costs and risks.

Attention! Due to recent changes in legislation, the information in this article may be out of date. However, each situation is individual.

Is it possible to transfer an apartment to a relative without tax?

Ownership gives you the opportunity to dispose of property as you wish. You can sell, donate or bequeath the apartment. However, any real estate transaction has its own nuances that you need to know about in advance. Any owner or recipient of housing is interested in the profitability of the transaction, and accordingly is interested in how to re-register an apartment and not pay taxes. This option is possible if you sign the transfer of ownership rights to relatives. Which relatives fit this category, and what is the best way to transfer the apartment?

Registration of ownership of a privatized apartment

Well, registration - information about the old place of residence also remains in the passport. In all these circumstances, it is not necessary to change the title documents, since the citizen’s right of ownership and use is retained regardless of the above changes, and in the event of alienation (for example, sale) of the property, changes will be made automatically based on the documents provided for the transaction.

This is interesting: Document on the privatization of an apartment before 1998

Unregistered inheritance After the death of the testator, people who received inherited property must formalize their ownership rights to it, namely, open an inheritance case and enter into inheritance. Quite often, heirs neglect this responsibility and are in no hurry to enter into inheritance.

But you need to enter into an inheritance. Firstly, it is possible that contenders for the property will appear. To privatize an apartment for several participants in the transaction, you must:

• The mutual and voluntary desire of each registered tenant to carry out the appropriate legal procedure.
• The decision to privatize must be made unanimously.
• One or more owners have the right to refuse to participate in the transaction, but in favor of the future owner. This refusal must be in writing and certified by a notary.
• It is not allowed to obtain the forced consent of the tenant, that is, through the court.
• If minors or incompetent citizens live in the apartment, you will need to obtain permission from the guardianship and trusteeship authorities.

It is impossible to privatize a separate share in the total area of ​​a municipal or state real estate property.

But the transaction amount, which will be specified in the contract, cannot be lower than the price established in the BTI (cadastral value). It is also not uncommon for the buyer and seller to agree that the 13% tax will be paid in half.

In the event that a gift agreement is concluded, then from 2006 the 13% tax will not have to be paid. But here it should be understood that, firstly, the gift agreement can be noted through the court, i.e. The buyer is at great risk.

Who is a close relative

The transaction of purchase and sale of an apartment, gift or will is the subject of the receipt of real estate or its sale, which in both cases is considered income. According to the Tax Code, any type of income is taxed. The income tax rate is 13% and is calculated on the assessed amount of the property. The only exception is property transferred to close relatives. In this case, the transaction is exempt from taxation and income tax does not have to be paid.

Now it remains to identify a group of citizens who are classified as close relatives by law. Since many people confuse this concept and attribute all blood relatives here. So, according to Article 14 of the Family Code, a close relative is:

• children (including adopted children);
• parents (including adoptive parents);
• siblings;
• grandmothers, grandfathers.

According to the Housing Code and the Criminal Procedure Code, spouses are also included in the list of close relatives, however, the Tax Code, when distributing taxes, refers exclusively to the provisions of Article 14 of the RF IC. This means that spouses do not belong to this category.

The above list is complete. Under no circumstances include the following relatives here, otherwise taxation when re-registering an apartment cannot be avoided:

• uncles and aunts;
• nephews and nieces;
• cousins;
• great-grandparents.

Now familiarize yourself with the features of re-registration of an apartment by the above-mentioned relatives (close ones):

1. If a spouse becomes the owner, then, depending on the type of transfer of real estate, the property may be considered joint or personal property, but tax will have to be paid, regardless of the method of transfer of the apartment.
2. Despite the fact that adopted children, parents, brothers/sisters are not of the same blood, they still belong to the category of close relatives, which means they avoid paying tax.
3. Half-siblings (only one parent each) also belong to the preferential group of citizens.
4. Other persons who were listed in Article 14 of the RF IC can transfer ownership of an apartment to their relative without paying tax.

This is important to know: State duty for transferring ownership of an apartment

However, it is worth making an amendment right away, even if close relatives are the participants in the transaction, the 13 percent tax charge can be avoided only with a certain method of transferring property - under a gift or inheritance agreement. Drawing up a standard procedure for a purchase and sale agreement will not allow you to evade the state contribution, since the terms of the agreement imply the transfer of money, which means receiving profit, which must be taxed.

Methods for re-registration of real estate

Re-registration methods

It doesn’t matter for what reasons the apartment is transferred to another relative, the main thing is to determine the correct type of transaction in which neither the owner nor the recipient of the apartment will have to pay income tax. According to the law, this is possible only in two cases: by will or when drawing up a gift agreement. Since in both cases the transfer of real estate occurs regardless of the will of the recipient, accordingly, he is not intended to receive benefits or income.

Donation

A deed of gift or gift agreement is a document that regulates the transfer of property from the donor to the recipient free of charge, that is, as a gift. Moreover, the second party, the recipient, should not mind accepting the subject of the agreement as a gift. A special feature of a deed of gift is that its decision cannot be challenged by other relatives (as can happen with a will). If it is discovered that the transaction was concluded upon reimbursement of a certain amount of money, in order to “circumvent” taxation, then the agreement may be invalidated.

You can donate real estate without paying tax only if you transfer the apartment to a relative. To do this, just contact a notary office with your passport and real estate documents. In front of you, the notary will draw up an agreement where there will be a change of ownership. The donation agreement will contain the following information:

• data of the parties to the transaction;
• the purpose of the transaction is the donation of real estate;
• method of possession;
• object of donation – apartment;
• technical characteristics of the apartment;
• cadastral value of the immovable property;
• methods of transfer of ownership rights;
• other conditions governing the legal relations of the parties;
• date, signature.

The main advantage of registering an apartment in the name of a relative without tax under a deed of gift is its sole ownership. That is, a spouse cannot claim this type of property after a divorce if the apartment was received during marriage, as well as other heirs of the donor. According to the Civil Code, any type of property received under a gift agreement is considered personal property and is not subject to division.

Another distinctive feature of the deed of gift is that the donor can note the transfer of ownership rights to the donee if the other has committed a crime against the former owner of the apartment or threatens him.

Inheritance

An inheritance agreement or will is a document that is drawn up during the life of the testator and comes into force after his death. An agreement for the transfer of an apartment can only be concluded by a legally capable owner. Heirs can be either relatives or any other person. The contract is drawn up by a notary, where ownership is established upon the occurrence of certain circumstances. The following documents will be required from the testator:

• passport;
• title documents for real estate;
• technical documentation apartment;
• paper from the cadastral department;
• extract from the housing office about registered residents.

The document is certified by the signature and seal of a notary, and then registered in the register. A will can be drawn up for a minor child, and unlike a deed of gift, permission from the legal representative is not required. Property rights can be transferred to another person only after the death of the owner of the apartment. The person indicated in the will is the sole owner, as in the deed of gift, and the apartment itself is also not subject to division.

As for tax contributions, close relatives are exempt from paying personal income tax, but in order to re-register an apartment, you need to pay a state fee. Compared to a gift agreement, its size here will be much higher. The amount of the state duty depends on the degree of relationship with the testator: for the first line of relationship you will need to pay 0.3% of the appraised value of the apartment, and for all others - 0.6%. There are also restrictions on the maximum allowable amount of state duty, which are fixed in Article 333.24 of the Tax Code.

The procedure for re-registration of an apartment to another owner

Let's consider the nuances of re-issuing a certificate of ownership of an apartment:

1. Buying real estate is considered one of the most reliable options.
   Often it is simply unrealistic to challenge the transaction procedure, which is based on mutual settlements. In this case, the buyer's rights are protected as much as possible. At the same time, the seller is deprived of the opportunity to refuse the purchase and sale transaction.
2. If the basis for re-registration of ownership of an apartment is a gift, then you need to understand that if the donor’s plans change, he has the right to insist on the return of the housing through the court.
   As for the recipient, he can dispose of it individually, since the re-registered piece of real estate is not considered as joint property and is not included in the property that is subject to division.
3. Rent makes it possible to transfer a property to another individual, and the conclusion of an agreement is not tied to family ties.
   The settlement of the transaction is made by paying equal payments for a specific period of time, determined by the clauses of the annuity agreement. Purchasers of residential premises under this agreement are faced with constant “claims” from the owner of the apartment, which may ultimately lead to the cancellation of the original agreement. The help of a notary makes it possible to ensure the interests of the parties to the transaction as much as possible.
4. Transferring a property by will or inheritance requires the presence of a list of documents of a standard type, as well as a certificate of death, receipt of inheritance and papers that demonstrate the presence of family ties.

The rights to the apartment remaining after the death of the owner may appear to one or more heirs, who can take advantage of the order of inheritance by will or law.

First of all, you need to contact a notary office in order to determine the inheritance mass. Next, at the request of the notary, you need to bring technical documentation. The procedure for transferring ownership rights when inheriting an apartment lasts 6 months. If issues arise with the allocation of shares, they are resolved through participation in court proceedings.

Important!

Re-issuing a certificate of ownership of an apartment without a notary is a constructive option when purchasing property in a new building. In other cases, the participation of a notary is required, who will be responsible for a full-fledged property transaction.

Possible risks

What problems can you encounter when re-registering an apartment under a will or gift agreement?

1. Firstly, it is important to correctly determine the circle of people who belong to the category of “close relatives” according to the Family Code, and not based on your personal relationship and closeness with the person.
2. Secondly, a will can be contested. Other heirs can do this if they consider that the inheritance agreement was signed under threat or in a state of mental deviation, which does not reflect the real expression of will.

The inheritance is contested through the courts. Most often, these types of claims are obviously unsuccessful if the applicant does not have significant evidence that the document was signed under threat to life or health, or simply the closest relatives do not agree with the fairness of the decision of the deceased. As for the deed of gift, it is not subject to challenge or only in cases where the participants in the transaction hid the purchase and sale transaction behind the gift agreement in order to evade tax.

Thus, before re-registering this or that type of property, evaluate all the advantages and disadvantages of each transaction. If close relatives are participants in the process, then they are subject to preferential conditions and are exempt from paying tax under a gift or inheritance agreement. If you want to re-register an apartment in the near future, then this can only be done through a deed of gift, since the will comes into force only after the death of the signatory.