Forms of transferring red books to children
Currently, parents can transfer land use rights to their children in 2 ways: donating land use rights or transferring land use rights.
For the form of transferring given names, parents voluntarily transfer the land use right to their children. The recipient is exempt from personal income tax and registration fees according to the provisions of the Law on Personal Income Tax and Decree 140/2016/ND-CP.
When parents transfer land use rights to their children with payment value, meaning that the child must pay for the land purchase, this transaction is considered a normal sale and purchase. At that time, the transferor must pay 2% personal income tax on the contract value, and the transferee must pay a registration fee of 0.5%.
Conditions for transferring red books
The land has a red book and is under the legal use rights of parents. In case the land is mortgaged at a bank or in dispute, the transfer of ownership is not eligible.
No disputes, no sanctions for enforcement.
Ensure that the land has a term of use. If the land expires, people need to extend the use period before carrying out donation procedures.
In accordance with local planning and land use plans.
The donation contract must be made in writing and notarized or legally certified.
In addition, the grantedor must have sufficient civil act capacity to be in possession of land use rights. In case the child is under 18 years old, the gift must be received through a legal representative.
Details of procedures for transferring red book names to children
People need to follow the correct process to be legally transferred:
Step 1: Establish a donation contract or a transfer contract, notarized at the notary office where the land is located.
Step 2: Submit the transfer file at the Land Registration Office where the land is located.
Step 3: After completing financial obligations (if any), the registration agency will issue a new red book in the name of the person receiving the land use right.
Note, people should not make handwritten gifts or arbitrarily transfer their names without notarization because these transactions have no legal value and can cause disputes later. In addition, in case the land is in the planning area or there is a dispute, the transfer of ownership will be temporarily suspended until it is completely resolved.
