Gifting an Apartment to a Relative: How to Do It

When people choose a gift

Parents want to leave the apartment to their children in advance, a grandmother to her granddaughter, a couple to put the home in one spouse's name. A gift makes this possible during one's lifetime and without money: the recipient gets the apartment free of charge, and the right passes to them after registration with the Cadastre, not after the donor's death as with an inheritance.

You can also give a share. According to the Cadastre, the only way to become a co-owner of an apartment is through a transaction, a gift or a sale, after which the right is registered. For example, parents can give a child half of the apartment and remain owners of the other half.

What the law says

• A gift contract is made in writing, and a gift contract for real estate must be notarised (Article 595 of the Civil Code).
• The transfer of ownership under such a contract is subject to state registration (Article 596).
• A contract under which the gift passes only after the donor's death is void; that is what a will is for (Article 594).
• Property in joint ownership, such as a married couple's apartment, can be given away only with the consent of all joint owners (Article 599).
• Legal representatives are prohibited from making gifts on behalf of young children (Article 598).

Step by step

1. Order a unified Cadastre extract: the donor must be the owner, and there must be no arrest on the apartment.
2. If the apartment is the spouses' joint property, obtain the other spouse's notarised consent.
3. If any owners are minors, discuss with the notary how to handle their shares.
4. Sign the gift contract at the notary. Both parties come with their passports; the recipient may also act through a representative with a power of attorney.
5. File the contract for registration with the Cadastre within 30 working days of certification; otherwise the law on state registration of rights makes the deal void.
6. Receive the certificate of registration and order an extract in the recipient's name.

Taxes and costs

Under Armenia's Tax Code, property an individual receives as a gift from another individual is not subject to income tax (Article 147); according to tax reference guides, the rule does not depend on the degree of kinship. If a sole trader or a company is involved, different rules apply, so check with the tax service. The costs are the notary's services and the Cadastre registration fee; confirm the amounts with the notary and on e-cadastre.am before filing.

Gift, inheritance or sale

What to think about in advance

• After registration the apartment belongs to the recipient, and a gift cannot be revoked at will: the law allows it only in specific cases, for example if the recipient made an attempt on the life of the donor or their close relatives.
• A gift received by one spouse is, as a rule, that spouse's personal property rather than joint property; if in doubt, check with the notary.
• If you want to divide the apartment among several children, you can give shares, but later the whole apartment can only be sold by all of them together.
• A buyer of a gifted apartment should check in the extract that the gift is registered and there are no restrictions.

How would you pass an apartment on to your children? As a gift during my lifetimeThrough a willSell it and split the moneyHaven't thought about it yet

Key points

• An apartment gift contract is made in writing and certified by a notary.
• The right passes to the recipient after Cadastre registration; file within 30 working days.
• A gift from an individual is not subject to income tax; you pay for the notary and registration.
• A married couple's apartment can be given away only with both spouses' consent.
• A gift cannot be revoked at will, so decide in advance and discuss the terms with the notary.