2023-04-21 05:06:58
Can I donate to my daughter money from a mortgage loan on a house I own so that she can buy her own house without having to ask for credits or loans?
In most of the occasions the Mortgage loans are granted for the purpose of acquiring a propertyfinance its construction or rehabilitation.
But they are also granted for other purposes depending on the objectives to be achieved. The first thing to do is analyze the clauses of the mortgage loan that you have signed with the financial institution, and there may be different alternatives regarding the purpose for which it is granted.
It may happen that it had been granted for a limited purpose, for example, the acquisition of a vehicleor that what was contracted was a liquidity mortgage loan, which would allow him to dispose of the money for the desired purpose in this case.
If the destination of the borrowed money was conditioned by the contract, Failure to comply with this clause by the borrower could lead to negative consequencesand the contract may even be terminated with the timely restitution of benefits.
Therefore, if we take into consideration that what has been granted is a mortgage loan where you do not have to justify the destination of the capital, you can donate the amount you want to another person.
Always without forgetting that you are still responsible for repaying the loan to the lender according to the conditions agreed in the deed.
The donation, provided for in article 618 of the Civil Code, constitutes a legal act through which The donor assigns a property to the donee free of charge of your property, in this case money.
This is a formula frequently used by parents who see in this legal formula a alternative for their children to access the purchase of a home when banks do not grant financing for not proving sufficient solvency.
These kinds of parent-to-child donations are subsidized, being able to reach 99% of the quota in the Community of Madrid. To pay taxes on donations in the Community of Madrid, her daughter, the donee, must have had tax residence in this community for most of the time of the five years prior to the donation.
In order to benefit from the discount, the donation must be made in a public document before a notary. On the other hand, if you do it in private document, would pay 100% of the fee.
Therefore, the answer is that it is indeed possible to donate to your daughter the money she has received in the framework of a mortgage loan with the aim of her buying a property.
*Sonsoles Martinez Gonzalezlawyer at Lean Abogados.
Housing Advisor
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