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  • Writer's pictureAbby Wang

What Fees Need to be Paid When Transferring a House in a Chinese Foreign-related Inheritance Lawsuit

Recently, many foreign customers have approached us. They have relatives who have passed away and left them a house in China. Regarding this, they ask us about how to legally inherit and sell a Chinese house.

In such cases, since real estate disputes are under exclusive jurisdiction, if a dispute arises, the case needs to be litigated in the court where the house is located in China. So what are the costs incurred in the transfer of the house in a lawsuit? This article will take a house worth CNY 500,000 as an example to give a brief introduction to this.

1.Litigation expenses

The house transfer can be conducted under the notarization from Real Estate Registration Center only if the following conditions being met at the same time: No dispute between several successors; Succession issues are not complicated; Parties are in China.

Any of these conditions not being satisfied leads to a lawsuit, which incurs legal fees. The legal fees, including the case handling fee, preservation fee and insurance fee, must be paid to court.

Case handling fee refers to the fee incurred while court decides to accept the case.

Preservation fee refers to the fee that the successor paid to court, to preserve the house concerned, for the purpose of avoiding the house being auctioned by other successors when there is a dispute between them.

Insurance premium refers to litigation property preservation liability insurance. During the insurance period, if the insured suffers losses due to the wrong litigation property preservation, the insured shall bear the economic compensation after the court judgment takes effect, and the insurer shall compensate in accordance with the insurance contract.

The aforementioned three items of fee are calculated on the basis of the price of the house involved. For example, the case handling fee and preservation fee of a house valued CNY 500,000 will be CNY 8,800 and CNY 3,020 separately. Considering that insurance fee averages about one thousandth of the price of the house, it turned out to be ¥500 approximately.

2.Stamp Duty

There are 18 categories of taxes in China. However, a procedure of house succession as well as house transfer doesn’t involve all categories of taxes.

Currently, stamp duty is the sole kind of taxation that needs to be charged during a house transfer procedure. It lies tax on the acts of signing or receiving certificates with legal forces in economic interaction.

You have to pay the stamp duty relevant to the contract for CNY 250, 0.05% of the valuation of the house, in the case of a house valued CNY 500,000. The amount of stamp duty arising from the application for an immovable property registration certificate is CNY 5.

3.Other expenses

In addition to litigation fees and stamp duty, there are also other fees in this procedure which you may not overlook.

(1) Real estate evaluation fee. For a house less than 100㎡, this kind of fee will be of 5% of the valuation of the house, which turned out to be CNY 2500 in the circumstance of a house valued CNY 500,000.

(2) Registration fee. The act that has legal effect in the process of housing transfer is transfer registration, and housing transfer registration requires a handling fee, which is CNY 100.

These are the all expenses predictable in succession suits.

The above is a list of all the fees that may be incurred in an inheritance action. Please feel free to contact us if you have any questions.



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