News & Articles Your Property Rights- Premarital Property
Your Property Rights- Premarital Property
4 Aug 2016
Due to the introduction of new marriage law, more people are concerned about the issue of pre-marital property. This article aims to clear up confusions so that you can avoid conflicts with your spouse in the future!
What is premarital property?
Premarital property refers to a property that is purchased before a person is married. As long as the property is legally acquired, it is legally protected by law. This includes movable or immovable, tangible or intangible properties.
Below are the things you should know before purchasing a premarital property:
1. Real estate purchase contract
If two people are co-financing a house, it is best to include names of both parties in the purchase contract. If for some reason only one name is written down, it is best to prepare a legally binding written instructions, stating clearly the relationship between both parties and the terms for housing investment. Meanwhile, it is wise to hire a lawyer as a witness for the documentation of money invested by both parties, future payments and rights to the house.
2. Matrimonial regime
Before two people are married, both can apply for a pre-marital agreement to avoid future disputes over properties.
3. Be clear with finances
Since purchasing a house is a big commitment, some parents do help out financially. For such cases, if the purchase contract has only 2 names (children), it is best to have an additional written agreement. This is because if the couple breaks up without any agreement, parental contribution will be donated to the two children, and no parents can get back their money invested. Therefore, parents should make sure an agreement is formed before lending money to their children to buy a house.
4. House loan
Nowadays, banks are very strict with mortgage loan approval for individuals who purchase property. If an unmarried couple want to get a loan to buy a house, both parties need to have good credit record. If one party has a bad record, it is unlikely for the couple to get a mortgage loan.
Also, if a couple in a non- spousal relationship wishes to buy a house together, the couple should sign an agreement specifying the rights and obligations of both parties. If and when one of the party cannot afford to repay the loan, the other party will have to pay for it. This causes one of the parties to bear a huge “debt”.
(中文版请看这里:http://goo.gl/0ckcZ3)
What is premarital property?
Premarital property refers to a property that is purchased before a person is married. As long as the property is legally acquired, it is legally protected by law. This includes movable or immovable, tangible or intangible properties.
Below are the things you should know before purchasing a premarital property:
1. Real estate purchase contract
If two people are co-financing a house, it is best to include names of both parties in the purchase contract. If for some reason only one name is written down, it is best to prepare a legally binding written instructions, stating clearly the relationship between both parties and the terms for housing investment. Meanwhile, it is wise to hire a lawyer as a witness for the documentation of money invested by both parties, future payments and rights to the house.
2. Matrimonial regime
Before two people are married, both can apply for a pre-marital agreement to avoid future disputes over properties.
3. Be clear with finances
Since purchasing a house is a big commitment, some parents do help out financially. For such cases, if the purchase contract has only 2 names (children), it is best to have an additional written agreement. This is because if the couple breaks up without any agreement, parental contribution will be donated to the two children, and no parents can get back their money invested. Therefore, parents should make sure an agreement is formed before lending money to their children to buy a house.
4. House loan
Nowadays, banks are very strict with mortgage loan approval for individuals who purchase property. If an unmarried couple want to get a loan to buy a house, both parties need to have good credit record. If one party has a bad record, it is unlikely for the couple to get a mortgage loan.
Also, if a couple in a non- spousal relationship wishes to buy a house together, the couple should sign an agreement specifying the rights and obligations of both parties. If and when one of the party cannot afford to repay the loan, the other party will have to pay for it. This causes one of the parties to bear a huge “debt”.
(中文版请看这里:http://goo.gl/0ckcZ3)
Source: DurianProperty.com