What Happens When You Inherit a House in China?
If you and other heirs need to inherit a house jointly at inheritance, there will be three ways: (1) one heir gets the house and all other heirs get cash; (2) All heirs get cash; (3) All heirs share the house on a pro rata basis.
1. One heir gets the house and the other gets cash
If one heir wants the house, he/she will have to pay the other heirs cash as appropriate.
For example, if there are two heirs totally and both heirs divide the house equally, the heir who gets the house shall pay 50% of the market price of the house to the other heir in cash.
This means that both heirs can get 50% of the market price of the house, provided that the heir who gets the house pays the other heir in cash.
Generally, this won’t be a small amount. So, why will one heir want the house?
It is usually because he/she still wants to live in the house, or hold the house in order to obtain the return from the future appreciation of the house.
2. Both parties get cash
If neither heir wants the house, then they can sell the house for cash.
After that, both heirs will equally distribute the income under general circumstances.
In Way 1 above, the heir who gets the house needs to pay a large amount of cash to the other. Under the circumstances where neither heir has enough cash, they may choose this way.
3. The two parties share the house on a pro rata basis
If both two heirs want the house, they can jointly own the house on a pro-rata basis.
For example, if both two heirs equally divide the house, then both of them can register themselves as owners of the house with the house registration authority, each holding 50% ownership thereof.
In this case, how to use the house?
If the house is physically dividable according to the said proportion, then both two heirs can delimit their respective use area of the house.
If the house is not physically dividable for use, then both heirs will use the house together and shall not hinder the other party from doing so.
In this case, how to sell the house?
The sale of the house requires mutual consent. After the sale, both heirs may distribute the income according to the registered ownership share.
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