Insights

Can Ningbo Affordable Housing Divorce for Five Years

Ningbo Author：LuXu WANG

Affordable housing with "limited property rights" and "listing restrictions", divorce than ordinary commercial housing trouble. Whether and how it can be divided depends first on whether it has passed the restricted listing period, and then on the contribution and registration.

The Particularity of 1. Affordable Housing

affordable housing is a family indemnificatory housing provided by the government with preferential policies, limited area and listing transactions, with the attribute of "limited property rights. Divorce division, can not simply apply the rules of ordinary commercial housing, to take into account the policy restrictions.

It's still property and can be handled

special does not mean that it cannot be divided. Affordable housing, as the property interests of husband and wife, can be dealt with in the event of divorce, but the treatment is affected by the restrictions on listing and trading, and may be mainly based on compensation rather than free transfer.

What does it mean to 2. five years?

Local policies usually stipulate that affordable housing can only be listed and traded after obtaining a deed tax payment certificate or real estate certificate for a certain number of years (usually five years). This "number of years" determines whether the house can be freely circulated and how it can be divided in a divorce.

Subject to local policy

the starting point and specific number of years of "full five years" vary from city to city. Before handling, local housing construction and real estate regulations should be found out, and foreign experience should not be applied.

Treatment of 3. for less than five years

if the limited number of years is not reached and cannot be listed for trading, the divorce often adopts the method of "determining ownership + compensation": the house belongs to the eligible party or the actual resident, and the other party will be compensated for the capital contribution and value-added, rather than forced listing and auction.

Don't force the listing to cash in.

If you insist on selling your home for less than five years, you will run into policy restrictions and the risk of invalid transactions. The pragmatic approach is to calculate the rights and interests, use compensation to solve, and wait for the full number of years before considering disposal.

4. after five years of division

after the full limit of life, can be listed, the division is more flexible: can be owned by one party and compensation, can also be sold sub-funds. The amount of compensation is determined in combination with the purchase capital contribution, loan repayment during marriage, present value and policy discount.

Age Start and Policy Inquiry

the regulations on the starting point are not completely consistent in various places. There are three common calibres: from the date of online signing of the house purchase contract, from the date of payment of the deed tax stated in the tax payment certificate, and from the date of registration recorded in the real estate certificate. The specific caliber implemented in Ningbo and its surrounding districts and counties shall be subject to the local affordable housing management measures applicable at the time of purchase. It is suggested that before the negotiation, the real estate registration and housing security departments should confirm in writing the starting point of the fixed number of years and the standard of supplementary payment, and fix these two figures before the negotiation can have a common basis.

Three feasible ways to deal with the 5. under the age

the first is discount compensation, where the house belongs to the eligible party and the other party withdraws with compensation, which is the most common scheme in practice. The compensation base generally does not directly use the market price, but takes the value of the assessed price of the commercial housing in the same lot after deducting the price payable. If there is a greater dispute, you can apply for assessment, and the assessment fee is usually charged at 0.3-1% of the subject amount.

The second is to suspend the division, in the judgment to clarify the proportion of their respective shares, agreed to meet the listing conditions before the realization or settlement, applicable to the case where neither party can come up with compensation. The third is the separation of residence and income, where one party lives and the other receives the corresponding rental income or more points on other property. Each of the three methods has its own costs, and the choice should be made by taking into account cash capacity, housing needs and the risk of policy changes.

6. case proof

in practice, for affordable housing that has not reached the limit of listing and trading, the court usually decides that the party who actually lives or meets the conditions for purchasing a house shall compensate the other party for the capital contribution and appreciation during the marriage. The compensation shall be calculated at 50% of the joint capital contribution plus 50% of the corresponding appreciation, and the listing and trading shall not be forced.

In practice, if the two parties fail to negotiate on the ownership of affordable housing that has reached the limit and can be listed for trading, the court may award one party in combination with the proportion of capital contribution and the present value and order compensation, or may allow the cashing to be divided. The cash shall be paid back according to the policy, and the expenditure is usually deducted before the division, with the proportion being 3%-10% of the transaction price.

In practice, when buying a house, for affordable housing that uses one party's pre-marital savings to pay the down payment and jointly repay the loan after marriage, the court will first divest the pre-marital capital contribution and then compensate the principal and interest of the post-marital loan repayment and the corresponding appreciation by 50%. In such cases, the proportion of premarital capital contribution to the total house price is mostly 20% to 40%. The accounting benchmark is usually the appraisal price at the time of judgment or the average recent transaction price in the same residential area. The appraisal fee is about 50

00yuan.

7. Risk Alert

  • apply the rules of ordinary commercial housing and ignore the listing restrictions.
  • If you insist on selling your house for less than five years, the transaction is invalid.
  • If you don't find out the local age policy, the starting point is wrong.
  • Only the present value of the house ignores the policy discount.
  • Confusion between capital contribution and registration, unclear share.

8. FAQ

can affordable housing divorce be divided?

Yes, but affected by listing trading restrictions, often with attribution and compensation treatment.

Can it be divided in five years?

Five years can be more flexible listing split.

How to deal with less than five years?

If the house belongs to the actual residence or meets the conditions, the other party will be compensated for the value-added of the capital contribution.

Years from which day?

Look at the local policy, usually from the deed tax or accreditation, the city is different.

The house is registered in the name of the other party. I do not meet the conditions for buying a house. What can I get?

You can get discount compensation. Failure to meet the conditions only limits your acquisition of property rights and does not affect your claim on the amount of joint contribution and value-added within the marriage.

Practical Experience of 9. Lawyers

affordable housing with limited property rights and listing restrictions, divorce division can not directly apply the rules of commercial housing. Whether it can be divided and how to divide it depends on whether it has restricted the listing period-that is, "full five years". Before that, it was difficult to trade houses freely, and it was often not feasible to "sell for a penny"; but this does not mean that they cannot be treated as property, it is still a property interest that can be divided, but the treatment will be more in the form of compensation rather than free transfer.

Therefore, the parties must first clarify two things: the time when this suite obtains the deed tax payment certificate or property registration, and the specific local restrictions on listing transactions. Only by matching these two time points can we know whether we are in the stage of "being able to transfer ownership" or "not. At the same time, the capital contribution and registration should also be sorted out: whether the down payment and loan repayment are jointly made or made by one party, and whose name is registered, these will affect the calculation of attribution and compensation, and are also the most important materials for negotiations.

Before the end of the year, there are several more feasible practices in practice: confirm that one party acquires the housing interest, and compensate the other party according to the negotiated or assessed price. During the negotiation, "who needs this suite more" and "whose qualification is bound to this suite" can be taken as the cut-in, and these realistic factors can be turned into part of the compensation plan. If we cannot negotiate properly, we should also write down the lawsuit request so that it can fall to the ground.