Buying a house without a mortgage

Helping their children buy a home is a decision many parents make. It is an economic investment of great importance as savings are invested, debts are contracted and a sustainable future spending commitment must be planned. Here are some tips for managing the operation.

In order not to have nasty surprises of a fiscal nature and related to anti-money laundering legislation, but also not to jeopardize the correct management of future inheritance issues, the aid, provided it is legitimate, must take place in the most transparent way possible, with traceable money transfers. To avoid missteps which can be difficult and expensive to remedy, in this article we suggest remedies and solutions endorsed by the Council of Notaries of Milan, to be taken into consideration when giving a sum of money to children which will then be used to purchase a property

According to the notaries,there are two possible ways to support children in buying a house :

the first is to give the children a sum of money which will then be used to buy the property,

the second is to order the payment to the seller directly from your current account before the notary.

The first hypothesis requires a double passage and is regulated with two separate notarial deeds. The first is the donation of money, the second is the sale of the house, the price of which will now be paid directly by the children. This solution has the following advantages :

a high degree of clarity on money transfers;

greater transparency in family relationships, especially if there are other children;

clarity also in relations with the tax authorities, as the transfer of money takes place through a registered deed, and therefore no problem arises in the face of any tax audits on the origin of the money;

finally, since it is a deed of sale of the property, the donation of money does not emerge, facilitating any subsequent sale of the property.

Among the disadvantages it is necessary to consider the increase in costs, because the notary draws up two deeds.

In the second hypothesis, the donation enters the only deed drawn up by the notary with the following aspects to consider:

the operation is undoubtedly less expensive .