You may be wondering…

• When can a gift agreement be considered invalid?

• How can I defend myself against it?

• What if the property has already been recorded in the land registry?

• Which type of lawsuit is most effective?

Clients ask me…

When is a gift agreement invalid?
For example, if:

• the mandatory written form was not respected (e.g. for real estate),

• the donor lacked legal capacity,

• the contract was signed under duress or distress,

• the subject of the gift was not sufficiently defined.

What to do if I suspect invalidity?
In practice, you must file a lawsuit for determination of ownership, arguing that the gift agreement is invalid. A lawsuit merely declaring invalidity is not enough for the land registry – to change or correct the entry, the court must decide who the rightful owner is.

Invalid gift agreement in a nutshell

• Form – written, notarized signatures for real estate.

• Content – clear definition of the subject matter.

• Will – must be free, not coerced.

• Capacity – both donor and donee must have legal capacity.

• Lawsuit – in practice: determination of ownership, not just invalidity.

Main risks and mistakes

1. Neglecting form. The most common issue is missing a written contract for real estate.

2. Signing “blindly.” People sign without understanding the consequences.

3. Family pressure. Such agreements can be challenged.

4. Unclear definition of the property. E.g. vague description of real estate.

5. Wrong type of lawsuit. A claim of invalidity alone won’t change the land registry entry.

Step-by-step process

1. Check the contract – does it meet formal and substantive requirements?

2. Identify grounds for invalidity – form, duress, incapacity.

3. File a lawsuit for determination of ownership (based on the invalidity of the gift agreement).

4. Once successful, request a correction in the land registry.

Real-life example

A client signed a gift agreement transferring a house under strong psychological pressure from her grandson. The property was entered into the land registry because the contract formally contained all the required details. However, the court later found the agreement invalid due to lack of free will. On the basis of a judgment determining ownership, the land registry was corrected and the client remained the rightful owner.

Why to be cautious

If you decide to challenge a contract, the exact wording of the lawsuit is crucial. Only a court ruling on ownership will lead to a correction in the land registry – a mere declaration of invalidity is not sufficient.

Lawyer’s recommendation

• Never sign under pressure or without fully understanding the content.

• For real estate, always check that the description matches the land register.

• If you need to challenge an agreement, insist on a lawsuit for determination of ownership – only this has a real effect in the land registry.

Checklist:
☑ Verified contract form
☑ Subject matter clearly defined
☑ Free will ensured – no coercion
☑ If not, prepare for a lawsuit on ownership determination

FAQ

What if the contract is invalid but the gift is already in the land registry?
You must file a lawsuit for determination of ownership.

How does the court assess invalidity?
It examines both formal and substantive defects, as well as the circumstances of signing.

Can a contract be challenged after many years?
Yes – invalidity is assessed regardless of time, but proving it gets harder the longer you wait.