Real estate boom halts inherited resignations in state

Practice relinquish one’s inheritance of a family member for fear that debts far exceed the value of assets that can be borrowed. starts to lose steam in the province. After years of uninterrupted growth in these rejections since the real estate bubble burst, notaries close to 6% decline In the first quarter of 2022, they tied to the beautiful moment the brick was living in Alicante, which encourages most of the heirs to try to sell the property to at least see if they can make any profit.

In this way, between January and March of this year, registered in the province 459 resignations Compared to 488 for the same term in 2021, according to the latest data from the Valencian Notarial College. A 6% decrease this contrasts with the 19% increase they experienced between 2019 and 2021 alone (they fell in 2020 due to quarantine), or the trend of previous years.

The decision to reject a possible inheritance was practically anything but. remaining until the advent of the 2008 crisis. The subsequent fall in prices left many homes homeless. Mortgages that exceed the market value of these propertiesAdded to this is the generalized over-indebtedness that many households suffer from other loans left over from the boom years, or because they have to face the weak years following the real estate collapse.

In this way, situations where the amount of debt outweighs the possible benefit began to arise with increasing frequency, leading more and more citizens to choose to go to a notary public to reject these legacies. Sometimes even preventatively, just out of fear that some of the deceased’s hidden debts will come to light.

a) Yes, Of the 286 cases recorded in 2007 It rose to 648 in 2011. A figure that doubled again in 2014, when 1,358 resignations were registered, and continued to grow until reaching its maximum in 2015. last year, when it was formalized 2,053 minutes.

Inheritance transactions increased. EP

However, in the first months of the year, the situation started to change and although there was no significant decrease, at least the pace slowed According to the vice dean of the Valencian Notaries Union in Alicante, the growth Jonah Martinez.

“you’re getting too big number of sales and prices have also increasedso people now see more possibilities that they can make a profit by selling the goods”, explains Martínez, remembering that there is also the possibility of inheriting. “for the benefit of inventory”. An option which means that the heir will only be liable for the debts of the deceased with the inheritance property and therefore will only receive something if there is any remaining amount after canceling these debts.

In this sense, it should not be forgotten that they are sold in the province in the first four months of the year. 47.5% more homescaused the average price per square meter to rise by up to 8.7% last year. In addition, the scarcity of newly built housing stock shifted demand to the second-hand segment, which facilitated the exit of houses that were more difficult to sell before.

Effects of the pandemic

While resignations are declining, recent data from the National Institute of Statistics also reflect an increase in the number of inherited homes in the province as a direct result of the rise in deaths caused by the pandemic. In this way, from January to April 3,411 ownership changes therefore 15% more than last year.

When a person dies, his heirs six months to pay relevant taxes and while it was common for some citizens years ago to choose to wait with the intent prescribed by the stated amounts, even if they did not need the money, the increasing exchange of information between governments makes this option impossible today. So the surge in deaths from coronavirus was instantly transferred to these property transfers.

This increase in the number of inherited properties, along with new features Cadastre Reference Index As calculated, according to the last official data of Valencia Tax Office, Inheritance Tax collection increased by 52.9% in the first five months of the year.

Writing of wills increases, donations decrease

The increase in death rates recorded during the pandemic and, above all, the experience of isolation has led to an increase in Alicante’s people who have decided to put their last wishes in writing in order to make it easier for their grandchildren. In this way, if there was already a 17% increase in the number of wills deposited at state notaries last year, this figure increased by 8.5% in the first quarter of 2022.

According to data from the Notary College, 8,695 people from Alicante took the test, particularly between January and March.

On the contrary, the number of donations has been reduced, rising to 36% in the previous year compared to pre-pandemic, as many parents decide to inherit their surviving assets to their grandchildren. any possibility. An increase also influenced by fears of tax increases. However, 1,694 donations were made in the first quarter, a decrease of 2%.

Source: Informacion


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