Can I be added as part-owner?
My partner bought our property and I have provided money for renovation. Can I register my share?
MY PARTNER bought our property and I have provided money for renovation. It is in his name and we would like to have my share legally registered. Can we do this? M.S.
Notaire Grégory Denoyelle from Saint-Omer (firstname.lastname@example.org) said that, when a property is purchased, usually the owner is the person who is buying it with their own funds or who will be reimbursing a loan.
However, difficulties can crop up if a third party who is not the owner has financed or will finance all or part of the purchase, the reimbursement of the loan or of renovations.
If proof of these payments can be made, the person who made them can be reimbursed by the owner by way of ceding part of their rights to the property, which is, for tax purposes, seen as a kind of sale.
The same can apply if the person agrees in the future to reimburse all or part of a remaining loan.
If the “sale” equates to a 50 per cent share in the property, there will be tax of 7.5 per cent on half of its value.
If however the transfer is made with no contribution from the recipient, it is subject to gift tax payable by them, up to a maximum 60 per cent where there is no formal relationship (eg. the parties are not married or in a civil partnership).
The transfer would be arranged by a notaire in both cases.