Risks of a real estate donation contract

Yes, we could give you a long theoretical description of how it works. But we know that the greatest lessons come from practice and from concrete cases of solutions. Therefore, we will describe the story of our client, Mr. Tadeáš, who solved a similar situation in his family.

Mr. Tadeáš had two children and one apartment. Some time ago, he gave his younger daughter a relatively large sum of money to set up a dental office. However, he did not want to disadvantage his second daughter. So he decided to sort everything out during his lifetime. At that point, however, he had no further savings. And he didn’t want to give up his apartment. He trusted his daughters, but he still wanted to have everything in black and white so that everything was clear between them.

Aproperty deed can help clarify family relationships

The solution was simple – a deed of gift for the property, which would transfer the apartment to the daughter and also establish a right of survivorship for Mr. Tadeas. Which in practice means that only after his death will the property be vacant. During his lifetime, however, the family relations will be clarified and neither he nor his daughters will feel wronged.

What to look out for in a deed of gift of real estate?

1. Check that all the information in the contract is correct. It should be enforceable and stand up to the Land Registry.

2. Don’t forget anything. You need to be precise in the designation of the immovable property in the contract – both the buildings and the associated land.

3. Describe everything thoroughly and in detail. The contract should include everything that is being transferred, including ancillary land or even household furnishings.

4. Do not forget to contractually address the establishment of any easement.

5. Make sure the contract is properly signed and the signatures of all parties are verified (at a notary, lawyer or Czech POINT office or post office).

What is the best course of action?

The best procedure for the transfer of valuable real estate is to entrust the whole matter to a specialist who will prepare all the documentation for you and advise you on how to proceed. You will avoid all risks, if only because solicitors are legally insured and guarantee the accuracy of their contracts and the entire transaction.

We recommend that you avoid the specimens of a deed of gift of immovable property without the author’s name, which are commonly found on the Internet.

The risk of using such contract wording is that you may come across an outdated or incorrect model, which may result in the contract being rejected by the Land Registry. In an extreme case, it can also mean losing the gift if you fail to create a new contract before the donor dies.

What solution would you choose in such a situation? We can help you with both advice and the creation of a gift deed for the property.