Land Donation Agreement: How to Draft It?

Quick Overview

How to Donate Land?

1. Verify the landowner, parcel number, cadastral area, and any restrictions on ownership rights.

2. Draft a written deed of gift that precisely identifies the land, the donor, and the donee.

3. Obtain the signatures of the contracting parties and have them notarized for the purposes of the registration proceedings.

4. File an application to register the ownership right in the real estate cadastre and pay the administrative fee of 2,000 CZK.

   5. Once the registration is approved, the donee becomes the owner of the land, and the legal effects of the registration take effect retroactively from the moment the application is delivered to the cadastral office.

Land Transfer – Basic Requirements

Do you own a building lot or a lot with a house already on it, and would you like to donate it to someone? You can, but if you want to transfer it free of charge, you’ll always need a written deed of gift. Such a deed of gift must include all the legal requirements so that the Land Registry will then approve the transfer of ownership.

To begin with, let’s briefly clarify the terminology we may encounter when transferring ownership of land:

• The Cadastral Act definesa plot of land as a portion of the earth’s surface that is separated from neighboring portions by the boundary of a territorial unit or the boundary of a cadastral area, or by some other boundary defined in more detail by law.
• A plot of land that is geometrically and positionally defined, depicted on a cadastral map, and identified by a parcel number is then referred to as a parcel.
• We may also encounter the term “building lot,” which refers to a plot of land registered under the land category “built-up area and courtyard.”
• Land that is not a building lot is referred to as a land parcel.

Under current law, a structure is considered part of the land; temporary structures are an exception. Therefore, if there is a structure on the land that is part of it, it is not possible to transfer ownership of only that structure separately while retaining ownership of the land—or vice versa; ownership is always transferred for both at the same time.

How do you draft a deed of gift for a plot of land, and what requirements must it meet?

To transfer ownership of real property, a written contract is always required, setting forth all its essential elements. These include, first and foremost, the proper identification of the contracting parties (the donor and the donee), including their names, birth numbers, permanent addresses, and, if applicable, their identification document numbers.

If either party to the gift agreement is a legal entity, it must be identified by its name, registered office, and identification number. Another important element of the agreement is the precise identification of the land being transferred. The agreement should include the parcel number of the land, including the name of the cadastral area in which it is located.

If the parcel is a building lot, this information must also be provided; otherwise, it is presumed to be a standard land parcel. As noted above, a building is part of the land and therefore does not need to be explicitly identified separately in the agreement. Nevertheless, it remains advisable to specify such a structure in the deed of gift as well.

Since the gift agreement obligates the donor to transfer ownership of the land free of charge, no property-based consideration may be stipulated in it. The gift agreement must then be signed by all parties in their own handwriting, and their signatures must be officially certified so that the Land Registry has no doubts about their authenticity during the registration process.

Checklist: What a land donation agreement must include:

When drafting the agreement, check the following requirements:

• Identification of the contracting parties: Who is donating the land and who is receiving it.

• Precise description of the land: Parcel number, cadastral district, and, if applicable, the designation of the building lot.

• Expression of the donor’s intent: An unambiguous statement that the land is being transferred to the donee free of charge.

• Acceptance of the gift: The donee’s explicit confirmation that they accept the land.

• Signatures of the contracting parties: To ensure the registration process proceeds smoothly, have them officially notarized.

Depending on the situation, it may also be advisable to include provisions regarding easements, the transfer of the land, or existing legal restrictions.

Donating real estate raises a number of questions. How can you ensure everything is done correctly from a legal standpoint? When should an easement be included in the contract, and what happens if the donation doesn’t go as planned? In our related article, we looked at other aspects of donating land, such as paying taxes, probate proceedings, and more.

Can a sample land donation agreement be used?

A template for a land donation agreement can serve as a basic guide, but it does not replace a review of the specific circumstances of the transfer. Each piece of land may have a different legal status. Special attention should be paid, for example, to co-ownership, easements, liens, or the donation of only a portion of a parcel. A generic template may therefore not account for all necessary requirements. An improperly drafted agreement can unnecessarily complicate the entire transfer.

What to Watch Out for in Practice: One of the typical mistakes when donating land is incorrectly identifying the parcel being transferred. Simply mixing up the parcel number or specifying the wrong cadastral district can cause the Land Registry to have trouble approving the requested transfer. We therefore recommend always comparing the information in the contract with the current status in the Land Registry, not just with older documents.

Required Registration Proceedings

In addition to the deed of gift, a properly completed and filed application for the registration of ownership in the real estate cadastre plays an equally important role in the transfer of ownership of land . Ownership of real estate registered in the land registry is acquired only upon its registration in this public registry.

As part of the registration proceedings, the Land Registry reviews both the document on the basis of which the registration is being made—in this case, the deed of gift—and the application for registration itself.

An application to initiate proceedings for approval of registration in the Real Estate Cadastre may only be filed on the prescribed form with the competent cadastral office. The office with jurisdiction over the registration is the one in whose district the land is located. A copy of the gift agreement with officially certified signatures must be attached to the application for registration.

The transfer of the land is not complete merely by drafting the agreement. An error in the application for registration or in the attached documents can delay the entire process. Therefore, have our attorneys review both the deed of gift and the supporting documents for the Land Registry to avoid unnecessary complications.

A land donation can also be revoked

The Civil Code allows the donor to revoke their gift, either due to financial hardship or ingratitude. Therefore, if you donate land and subsequently find yourself in financial hardship or the donee begins to behave ungratefully toward you, you may request that the donee return the land to you.

However, since this involves real property, simply revoking the gift will not be enough for you to regain ownership of the land; you will also need to make the necessary changes in the land registry. And this can be a problem, because recipients often disagree with the reasons for revoking the gift.

If, on the other hand, they are willing to cooperate with the donor in this regard, they will need to jointly sign a so-called joint declaration, on the basis of which the land registry office will re-register ownership of the land in the donor’s name. Otherwise, however, it will be necessary to go to court to determine who is and who is not the owner of the land in question.

Donating land—or, for that matter, any other real property—must therefore be carefully considered, as revoking a gift may not be straightforward at all.

If you intend to donate land to someone and are unsure whether the donation agreement contains all the necessary provisions—and whether the Land Registry Office would then record the transfer of ownership as you wish—you can take advantage of our services. We will draft or review the gift agreement for you. We will also be happy to assist you if you find yourself in a situation where you wish to revoke the gift.

Summary

A land donation agreement must be in writing and clearly identify the contracting parties and the property being transferred. Pay particular attention to the correct identification of the parcel, the expressions of intent by the donor and the donee, and any legal restrictions on the land. The deed of transfer alone is not sufficient—an application for registration in the real estate cadastre is also required, and filing this application typically incurs a fee of 2,000 CZK. Before signing the contract, it is advisable to verify the property’s status in the land registry and consider establishing any easements. This will help you avoid complications that may be much more difficult to resolve after the transfer is complete.