• Gifting shares involves selling a home at a price below its current market value, but no physical money changes hands.
  • The gift of a share usually includes family members - as a rule, parents sell their house to a child.
  • Most lenders allow a gift to count towards the down payment on a home.
  • The capital gift must be properly documented in the form of a capital gift letter and the home buyer must be able to qualify for a mortgage loan.
  • Gifting shares can have tax implications for both the giver and the recipient.