Ensuring housing stability without undermining income is a priority in our times. That is why the assignment of a home stands as a priceless gift for your loved ones, giving them the use of a property without affecting your property or your finances.

To understand this type of agreement, it is essential to know exactly what the housing assignment contract entails, its differences with renting and donation, as well as to understand how it works and its tax implications.

What is the assignment of a property?

The assignment of a property is a contractual agreement that allows a person to use and enjoy a property owned by you without transferring its ownership. It can be temporary or for life, being common in cases such as the assignment to children, relatives, friends or as part of a divorce process.

In this relationship, two parties are involved: the owner of the property (transferor) and the person who receives the use of the property (transferee).

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Difference between housing assignment and rental

Unlike renting, the assignment does not establish a payment for the use of the property. In addition, while in the lease there are rights and obligations regulated by the Urban Leasing Law, in the assignment the conditions are established in the contract, giving greater flexibility to the parties.

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Difference between transfer of ownership and donation

The main difference lies in the fact that, with the donation, the ownership of the property is transferred, while in the assignment, only the temporary use and enjoyment of the property is transferred.

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Difference between transfer of a real estate property and usufruct

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Although similar, the assignment of housing and the usufruct have significant differences. While the assignment allows the use of the property for non-commercial purposes, the usufruct grants the right to receive the benefits of the property, including its sale or rental.

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How is an assignment of rights to a house made?

It is crucial to follow certain rules when formalizing an assignment of property. It is recommended to do so by means of a notarized contract that clearly establishes the conditions, whether it is a precarious assignment (free of charge and for an unspecified period of time) or a gratuitous assignment (with time and possibly interest).

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How does the housing assignment contract work?

When formalizing the contract, it is essential to specify whether it is an assignment in precariousness or in commodatum, to establish the gratuitousness of the assignment, to clarify the conditions for recovering the property and to determine who assumes the expenses generated by the use of the property.

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Taxation of the free transfer of the dwelling

To minimize the tax implications, it is important to prove the gratuitousness of the assignment by means of a notarial contract, which reduces taxation to imputed real estate income based on the cadastral value of the property.

In summary, the assignment of a home emerges as a valuable option to provide housing stability without affecting income, as long as its nature is fully understood and it is properly formalized.

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