Is a house being paid for in installments an inheritance? How does the law regulate this issue? Find out with LawFirm.Vn through the following article:
1. What does inheritance include?
To answer the question of whether a house being paid for in installments is an inheritance, we first need to find out what an inheritance is? Accordingly, inheritance is determined in Article 612 of the 2015 Civil Code including:
The estate includes the deceased’s personal property and the deceased’s portion of property in common with others.
According to this regulation, inheritance includes:
– Separate property of the deceased acquired while alive: Property under that person’s separate ownership such as marital property, property given to him or her separately, or inherited separately…
– That person’s property is in common property with others: This is the property of the deceased along with other co-owners. It can include the assets of the deceased in the marital property, this person’s assets in the household’s land use rights…
Thus, it can be seen that any property owned by the deceased is considered inheritance. And if this person leaves a will, the estate will be divided according to the will. If there is no will or the will is not legal… then the estate will be divided according to law based on the deceased’s inheritance.
2. Is a house being paid for in installments an inheritance?
As analyzed above, property owned by a person is considered the inheritance that person leaves behind when that person dies. Therefore, even if the house is paid in installments, it is still considered an inheritance.
If before death, this person leaves a will to dispose of this house, then the person receiving the inheritance according to the will will carry out the wishes of the deceased. If the person leaving the inheritance does not leave a will, the estate including the mortgaged house will be divided according to law.
Normally, there are two forms of buying a house in installments: Installment purchase, also known as deferred payment or installment purchase, is stipulated in Article 125, Housing Law 2014 (agreed by the parties and clearly stated in the contract). buying housing) and buying in installments from banks.
2.1. Buy a house with deferred payment and installment payments
Pursuant to Clause 2, Article 125, Housing Law 2014 , if the home buyer with deferred payment or installment payment is still within the deferred or installment payment period and dies, the legal heir may continue to exercise the rights and obligations. payment of the deceased’s house rent.
After paying the full price to buy the house to the seller, the heir will be issued a Certificate of housing ownership in the name of the heir by the competent authority according to regulations.
2.2. Buy in installments from the bank
This is essentially a form of bank loan and monthly installment payments to the bank to use the loan amount to pay for the house purchased. Therefore, when buying a house in installments from the bank, the house is already owned by the buyer and the money used to buy the house is currently borrowed from the bank and the principal and interest are paid in installments.
Therefore, the house in this case is an inheritance and the obligations related to this house must also be paid priority by the co-heirs.
Accordingly, the performance of property obligations left by the deceased is carried out according to the provisions of Article 615, 2015 Civil Code:
1. Inheritors are responsible for performing property obligations within the scope of the estate left by the deceased, unless otherwise agreed.
2. In case the estate has not been divided, the property obligations left by the deceased will be performed by the estate manager according to the agreement of the heirs within the scope of the estate left by the deceased.
3. In case the estate has been divided, each heir shall fulfill the property obligations left by the deceased corresponding to but not exceeding the portion of property he or she received, unless otherwise agreed.
4. In case the heir is not an individual inheriting the estate according to the will, he/she must also fulfill the property obligations left by the deceased as if the heir is an individual.
According to this regulation, if the house has been divided among the co-heirs according to the will or by law, the co-heirs are obliged to repay the debt to the bank within the scope of the assets they receive.
However, because the house is currently mortgaged at the bank in the form of an installment loan, in order to divide the inheritance, the co-heirs must first pay money to the bank and pay off all debt. and withdraw assets to remove mortgage registration.
After removing the mortgage registration, the co-heirs prepare a written inheritance division agreement at a notary practice organization to divide the deceased’s inheritance, including the house that has just had its mortgage removed. as above.
Thus, no matter the form, the house being paid in installments is an inheritance. However, to divide the inheritance which is the house being paid in installments, you need to base on each specific case to find a reasonable solution.
