The children transferred nearly 3.4 million yuan to Beijing for purchase
Is it a gift or a loan for parents to transfer money to buy a house for their married children? Here’s the latest case (the old couple and the young couple fight a lawsuit) to tell you the answer.
According to a civil judgment disclosed on the official website of China judicial document website, Zhang is the son of Wang XX and Zhang XX. Zhang and Shi were married on March 29, 2013.
On December 17, 2013, Wang XX remitted 930000 yuan to Shi’s account; On December 23, 2013, Zhang XX remitted 2.45 million yuan to Shi’s account. Mr. Shi recognized the receipt of the above two sums of money, and also recognized that the above money was used for the purchase of the house involved, but did not recognize that it was a loan. He claimed that Mr. Wang XX and Mr. Zhang XX should donate the money to Mr. Shi and Mr. Zhang.
On January 6, 2014, Mr. Zhang and Mr. Shi bought a house of Mr. Zhu X and Mr. Li x located in XX, Shuangying Road, Chaoyang District, Beijing, which was registered under the names of Mr. Zhang and Mr. Shi and was jointly owned.
On February 18, 2018, Zhang issued the IOU respectively, which stated: “on December 16, 2013, Zhang XX borrowed RMB 245000 (two million four hundred and fifty thousand yuan only) for the purchase of houses in Chaoyang US cube community” and “on December 16, 2013, Wang XX borrowed RMB 930000 (nine hundred and thirty thousand yuan only) for the purchase of houses in Chaoyang US cube community”. Zhang XX, Wang XX and Zhang all agree that the time specified in the IOU is the time when the IOU was formed. Zhang said that before issuing the IOU, he said with Shi that Shi agreed, but he was not at home that day, so Shi did not sign; Shi Mou does not recognize his knowledge that Zhang Mou has issued a IOU to Zhang XX and Wang XX, saying that he has never known about it.
In this regard, the two sides have a dispute, then sue to the court.
Zhang XX and Wang XX filed a lawsuit to the court of first instance and requested: 1. Shi and Zhang should repay the principal of the loan of 3.38 million yuan and pay the corresponding interest (from December 24, 2013, according to the standard of 6% annual interest rate to the actual repayment date of the above loan); 2. The litigation cost of this case is borne by Mr. Shi and Mr. Zhang.
The court of first instance held that both parties had no objection to the fact that Shi received the transfer of 3.38 million yuan from Wang XX and Zhang XX, but Wang XX and Zhang XX claimed that it was a loan and Shi believed that it was a gift. Therefore, the focus of dispute in this case is whether the money in dispute is a loan or a gift.
In this regard, the court of first instance held that this case was a matter of determining the nature of the funds for the purchase of house by one of the parents during the existence of the marriage《 The second paragraph of Article 22 of the interpretation of the Supreme People’s Court on Several Issues concerning the application of the marriage law of the people’s Republic of China (2) stipulates: “after the parties get married, if their parents make capital contributions for the purchase of houses by both parties, the capital contributions shall be recognized as gifts to both parties, except that the parents explicitly state that they are donating to one party.”
In this case, during the marriage between Zhang and Shi, Wang XX and Zhang XX transferred 3.38 million yuan to Shi’s account for the purchase of the house involved, which was registered under Zhang and Shi. In the case that Wang XX and Zhang XX failed to prove that the two sums of money involved in the case were lent to Zhang and Shi, according to the above judicial interpretation, the money involved in the case should be recognized as the gift of Wang XX and Zhang XX to Zhang and Shi.
Reprint indicated source：Spark Global Limited information