What procedures are needed to gift a house to a child?

According to the provisions of Article 118 of the Housing Law 2014, houses gifted must satisfy the following conditions:

- Have a Certificate in accordance with the law;

- Not involved in any disputes, complaints, or lawsuits concerning ownership; within the term of ownership for houses with a limited ownership period;

- Not under distraint for the enforcement of a judgment or for complying with an administrative decision that has taken legal effect from a competent state authority;

- Not subject to land recovery decisions, with announcements of clearance, or house demolition from competent authorities.

==> You and your husband are the owners of the house, thereby you have the right to gift the house to your child according to Clause 1, Article 119 of the Housing Law 2014.

The procedure for gifting a house includes:

Step 1: Draft a house gifting contract, notarized or authenticated

Step 2: Procedure for title transfer at the land registration office, the dossier includes:

+ Application for registration of land use rights change

+ Land use rights gifting contract

+ Certificate of land use rights

+ Other documents, such as ID card, household registration book, marriage certificate/marital status confirmation.

Step 3: Financial obligations:

According to the provisions of Clause 4, Article 4 of the Personal Income Tax Law 2007 regarding tax-exempt income

"Income from inheritance, gifts in real estate between husband and wife; biological father, mother and biological child; adoptive father, mother and adopted child; father-in-law, mother-in-law and daughter-in-law; father-in-law, mother-in-law and son-in-law; paternal grandparents and grandchildren; maternal grandparents and grandchildren; siblings with each other."

According to the provisions of Clause 10, Article 10 of Decree 140/2016/ND-CP on exemption from registration fees

"Land and house inherited or gifted between: Husband and wife; biological father, mother and biological child; adoptive father, mother and adopted child; father-in-law, mother-in-law and daughter-in-law; father-in-law, mother-in-law and son-in-law; paternal grandparents and grandchildren; maternal grandparents and grandchildren; siblings with each other, which are certified for land use rights, ownership of houses, and other assets attached to land by a competent state authority."

==> Hence, when gifting a house to your child, your child is exempt from registration fees and personal income tax. However, your child will still have to pay administrative fees during the procedure of transferring and gifting the property.

We hope our consultation helps resolve your concerns.

Wishing you health and success!