Gifted Real Estate — When Ownership Rights Arise.

The real estate donation agreement is a contract under which the owner gratuitously transfers their property to another person. This is a popular way to transfer real estate, such as land, a house, an apartment, or a garage, to loved ones. Such an agreement has its own peculiarities that are important to consider in order to avoid legal issues.

Any objects that cannot be moved without losing their integrity or value may be transferred under a donation agreement, states lawyer

Irina Mironyuk

.

When Ownership Rights Arise Under a Real Estate Donation Agreement

Signing the agreement does not mean that the donee has become a full owner. Ownership rights to the gifted real estate arise only after registration in the state Register of Property Rights.

'The donee acquires ownership rights to the gift immediately after concluding the agreement and its state registration', — notes Mironyuk.

How Ownership Rights Registration of Gifted Real Estate is Conducted

Registration of ownership rights is conducted through:

• a notary who certified the donation agreement;
• or through a CNAP/state registrar.

Changes must be made to the State Register of Property Rights. It is from this moment that the new person officially acquires ownership rights to the apartment or house.

What Conditions Apply to Donating Joint Property of Spouses

Special attention should be paid if the donation concerns joint property of spouses. Here, it is important not only to have a notarized agreement but also to have a written consent from the other spouse.

'If one of the spouses transfers joint property, a written and notarized consent from the other spouse is mandatory. Otherwise, the transaction may be declared invalid', — clarifies Mironyuk.

What Risks are Associated with a Donation Agreement and When Can it Be Canceled

A donation is an irrevocable action, but the law allows for the termination of the agreement in specific cases.

According to Mironyuk, people often turn to lawyers who want to return the gifted property.

'There is one reason — conflict with the person to whom the property was transferred. Sometimes relatives change their attitude after receiving ownership', — she emphasizes.

Reasons that grant the right to terminate the agreement:

1. Gross ingratitude (a crime against the donor or their relatives).
2. Threat of destruction or loss of the object if it has significant intangible value for the donor.
3. Negligent attitude towards items that have historical, cultural, or scientific value.
4. Intentional murder of the donor — in this case, the heirs have the right to file a lawsuit.

What is the Deadline for Filing a Lawsuit to Terminate the Donation Agreement

In case of a desire to terminate the agreement, it is important to remember the statute of limitations. It is one year from the moment the donor learns or could learn about the grounds for termination.

The missed statute of limitations can be restored by the court, but only with valid reasons.

Why It is Important to Arrange Everything Legally Correctly

Donating real estate is not only a gesture of trust but also a legally complex procedure. Arranging it without a specialist, violating regulations regarding registration or rights of spouses can nullify the entire agreement.

'Before gifting, consult a lawyer, especially if it concerns joint ownership or a complicated situation with the donee. This will reduce the risks of unpleasant surprises in the future', — advises Mironyuk.

Gifting real estate is a great responsibility, so it is important to comply with all necessary legal requirements to avoid potential problems in the future. The main condition is to consult professionals for qualified assistance when entering into a donation agreement, especially in cases of joint ownership or complicated situations with the donee.