Buying a house by name means that buyers want to buy a house, but they borrow other people's names because they are not qualified as buyers or for tax avoidance. Buying a house by name generally occurs between acquaintances, relatives and lovers, but buying a house by name is actually an unreliable behavior, which leads to many real estate disputes. Xiaobian will introduce to you the risks of buying a house under a borrowed name, so you must be careful.
Risk 1: invalid contract
There is a group of people who are not qualified to buy special types of houses such as affordable housing, but want to buy it, so they buy a house under the name. This kind of contract is generally recognized as invalid. Because there are provisions in the contract law, the parties can not maliciously evade the law or national policies. Even if both parties want to apply to the notary office for notarization after signing this written agreement, the notary office will not accept it.
Risk 2: repudiation of the nominal property owner
If the nominal property owner (the person borrowed to buy a house) reneges, and the actual investor can not fully prove the principal-agent relationship between the two sides and the fact of paying the house purchase money, it will be very difficult to obtain the house property right or recover the house purchase money. In particular, many house purchases in the name of borrowing occur between relatives and friends, and sufficient evidence will not be retained.
Risk 3: the nominal property owner sells the house privately
If the nominal property owner does not keep good faith and secretly sells the property, and the person who buys the house purchases the property and handles the transfer of ownership, the real investor will face the situation that the property cannot be recovered.
Risk 4: the nominal property owner falls into debt and other disputes
If the nominal property owner has debts due to others that cannot be paid off, or there is a divorce dispute, the real estate is likely to be sealed up or auctioned, and the investor cannot get the house. In addition, if the nominal property owner has an accident, it is likely to lead to inheritance disputes. In this case, it is difficult for the investor to get the house, but he can only ask the other party to return the house price and liquidated damages, and can not ask to continue to perform the contract and obtain the house property.
Risk v. difficulty in transfer
Even if the nominal property owner does not have any breach of contract or breach of good faith, the transfer registration of the house under the name of the nominal property owner to the real property owner will also bear the corresponding taxes, which can not be saved. Not to mention that when the house meets the transfer conditions, the nominal property owner may also refuse to handle the transfer.
To buy a house in a borrowed name, buyers face many risks and costs. Even non policy special house buyers had better not buy it. Buyers must realize that buying a house under the name implies the risk of "losing the house and reducing the money". Do not have the fluke of evading policies and drilling legal loopholes. Buying a house under the name must be cautious.
If you have purchased a commercial house by borrowing your name, you must keep the original vouchers of capital contribution, such as passbook, house purchase invoice, etc. In this way, once the nominal property owner reneges on the agreement of the borrowing name house purchase contract, the borrowing name house buyer can rely on sufficient evidence to prove that the house is purchased by borrowing name, and the actual property right belongs to the borrowing name house buyer.