Checklist: Real Estate Donation Agreement in

Not sure if your deed of gift includes everything you need? Our attorneys will draft or review it for you and ensure that the application for registration in the land registry is filed correctly.

Checklist: What to Check Before Donating Real Estate

Before signing the gift deed, review the following points. These include not only the formal requirements of the real estate gift deed itself, but also circumstances that may affect the transfer, the future use of the property, or the relationship between the donor and the donee.

• Legal and factual defects in the property: Check the information in the land registry, particularly regarding ownership, liens, easements, foreclosures, seals, and other restrictions. Also verify that the actual condition of the property matches the information recorded in the land registry.
• The Donor’s Right to Continue Using the Property: If the donor intends to continue living in the apartment or house or otherwise using the property after the transfer, it is advisable to establish this right at the time of the gift—for example, through a right of residence—and, depending on its nature, have it registered in the land registry.
• Offsetting the Gift Against the Statutory Share or Inheritance Share: When making a gift between relatives, also consider the future inheritance implications. A gift made during the donor’s lifetime may, under certain conditions, be significant in the subsequent settlement of the estate.
• Tax Implications of a Gift: Verify whether the donee’s gratuitous receipt is exempt from income tax. The relationship between the donor and the donee, for example, may be a decisive factor.
• Gifts in the Event of Death: If the donee is to receive real property only after the donor’s death, it is not sufficient to automatically use a standard gift agreement. This method of transfer is subject to special rules, and it is advisable to have it reviewed by a lawyer in advance.
• Revocation of a Gift Due to Financial Hardship or Ingratitude: Even a gift is not necessarily final under all circumstances. The Civil Code allows for the revocation of a gift, provided certain legal conditions are met—for example, if the donor falls into financial hardship or if the donee behaves toward the donor in a manner constituting ingratitude.
• Debtor’s Foreclosure or Insolvency: Before the transfer, verify that the donor is not subject to foreclosure or insolvency proceedings. A transfer of property in a problematic financial situation may, under certain circumstances, be contestable or ineffective against creditors.
• Co-operative Apartment: In the case of a co-operative apartment, it is not the ownership of the apartment that is transferred, but rather the co-operative share. Therefore, it is also necessary to review the bylaws of the housing co-operative and the conditions for the transfer of membership rights and obligations.
• Articles of Association of the Homeowners’ Association: For a unit in a multi-unit residential building, it is advisable to also familiarize the recipient with the rules of the homeowners’ association, any obligations related to building management, and other duties of the unit owner.