When buying and selling second-hand houses, there is such a kind of contract as "yin yang contract". There are two reasons for this kind of contract. One is to avoid taxes; Second, in order to apply for more loans. But seemingly good behavior, but behind the crisis, why? After all, it's illegal. Next, this article will introduce why not sign yin-yang contracts!
1、 What is yin yang contract?
There are two common forms in the second-hand housing market: one is to sign two housing sales contracts with different prices, one for private transactions, and the other for handling the transfer procedures; The second is to lower the price of the house, and then sign another decoration compensation agreement and old furniture sales agreement, in the name of decoration compensation and furniture payment, to make up the actual transaction price of the house.
2、 What are the risks of signing a contract?
1. Lawsuit
According to the contract law of the people's Republic of China, 'malicious collusion damages the interests of the state, the collective or a third party; Cover up the illegal purpose in a legal form '. In this case, because of its illegality, the negative contract will often be confirmed as invalid. Trying to evade taxes may lead to lawsuits or bear the liability for liquidated damages.
2. Blacklisted by banks
If the purpose of the buyer signing the bank contract is to obtain more bank loans and deliberately increase the total price of the house, once discovered by the bank, it will be characterized as loan fraud. If the loan fails, it may also be included in the bank's blacklist and leave a big stain on the credit record.
3. Prone to contradictions
At the same time, after the buyer and the seller sign the "Yin-Yang contract", although some people may get away with it, because most of these contracts are unregistered, very non-standard, unclear agreement or even just oral agreement, contradictions and disputes are easy to occur in the process of performance.
4. When sold again, bear high personal income tax
Now there are some buyers who sign bank contracts to avoid taxes, but the roles of the buyer and the seller will change at any time. Even if it is a successful transfer to buy a house, when the time comes to sell, because of the huge difference in the appraisal price, we have to bear a high amount of personal income tax. The money saved at the beginning still has to be paid.
3、 What is the effect of yin yang contract?
When one party to the house sales contract seriously violates the tax management regulations with the yin-yang contract and brings a lawsuit to the court to terminate the contract or confirm that the contract is invalid, how does the court deal with it? Although the behavior of signing yin-yang contract does not conform to the legal provisions of our country, it does not mean that the contract is invalid, but only the price is invalid. Because the price clause is invalid, it is necessary to pay the actual tax and house payment according to the price agreed in the yin-yang contract.
Buying a house is a major event for the common people. If the signed contract cannot be protected by law, the risk of buying a house will increase sharply. Sign the yin-yang contract with a "fluke" mentality. If both parties have a dispute due to the transaction, the court will review the conclusion and effectiveness of the yin-yang contract. Once the contract is deemed invalid, the transfer procedures based on the 'Yang' contract will be cancelled due to false registration.