Is a Mortgaged House Considered Inheritance?
Is a Mortgage-Financed House Considered an Inherited Estate?
According to Article 612 of the 2015 Civil Code regarding inheritance, the estate includes the individual assets of the deceased and the deceased's portion of jointly owned assets with others.
Based on Clause 1, Article 651 of this Code, the legal heirs are as follows:
- The legal heirs are determined in the following order:a) The first line of heirs includes: spouse, biological father, biological mother, adoptive father, adoptive mother, biological children, adoptive children of the deceased;b) The second line of heirs includes: paternal grandparents, maternal grandparents, siblings of the deceased; grandchildren of the deceased whose grandparents are the deceased;c) The third line of heirs includes: great-grandparents of the deceased; uncles, aunts, nieces, nephews of the deceased whose ancestors are the deceased; great-grandchildren of the deceased whose great-grandparents are the deceased.
And according to Clause 2, Article 125 of the 2014 Housing Law regarding installment-based house purchase agreements:
- The buyer in an installment-based house purchase agreement can only execute transactions such as selling, gifting, exchanging, mortgaging, or contributing capital with the house after fully paying for it, unless otherwise agreed upon by the parties.
In the event that the buyer of the house dies before fully paying the installments, the legal heirs will continue the buyer’s rights and obligations and will be issued a Certificate of Ownership by the competent state authority after the heirs have fully paid for the house.
Therefore, the apartment is considered an inherited estate. Your friend is in the first line of heirs and, if inherited, will be issued a Certificate of Ownership by the competent state authority after fully paying for the house.
Can One Refuse to Inherit to Avoid Obligations?
Based on Article 620 of this Code regarding the refusal of inheritance:
- Heirs have the right to refuse the inheritance, except when such refusal is intended to avoid financial obligations to others.
- The refusal of inheritance must be documented in writing and sent to the estate administrator, other heirs, and persons tasked with distributing the estate.
- The refusal of inheritance must be expressed before the distribution of the estate.
Your friend cannot refuse the inheritance to avoid the obligation of paying the remaining installments for the apartment.
Respectfully!
