What is a donation contract and when to use it

A donation contract is an agreement where the donor transfers ownership of a thing to the donee without receiving any compensation, and the donee accepts the donation.
Unlike a purchase contract, there is no reciprocal consideration.

Typical situations where a donation contract is used:

• donation of movable assets (car, household equipment, valuables),

• donation of real estate (house, apartment, land),

• donation of money,

• donation of shares in companies.

Legal framework

The donation contract is regulated by the Czech Civil Code (Act No. 89/2012 Coll.), Sections 2055 to 2078.
The essential elements are:

• gratuitous (free) transfer,

• the mutual manifestation of will by both parties (donor and donee),

• capacity to donate and accept a donation.

For real estate, the donation contract must always be in writing, and the ownership transfer must be registered in the Land Registry.

Mandatory elements of the donation contract

• Identification of the donor and the donee (full name, birth date, address)

• Description of the donated item (movable / immovable)

• Express statement of the gratuitous nature of the transfer

• Express acceptance of the gift

• For real estate: precise description according to the Land Registry rules

• Date and signatures

Most common mistakes in practice

• Vague description of the donated item (especially real estate or valuables)

• Missing written form when required (invalid donation for real estate)

• Omission of the acceptance clause

• Lack of understanding of potential tax implications

• Donation conditioned by an invalid or inappropriate obligation

Recommendations for the donor and the donee

Donor:

• Carefully consider whether you genuinely wish to transfer ownership unconditionally.

• In the case of real estate, prepare all necessary documents (Land Registry extract, acquisition title).

Donee:

• Accept gifts only after thoroughly checking their legal status (especially for real estate – e.g., easements, liens).

Tip from practice

In practice, it often happens that a donated property is encumbered by a mortgage or other obligations.
The donee then assumes risks they might not be aware of.
It is strongly recommended to verify the Land Registry extract and ideally consult the situation with a legal expert before accepting real estate.

Basic donation contract template – available for a symbolic fee

If you need a simple donation contract template for a movable or immovable asset, I can send it by e-mail for a symbolic fee.

This template is intended for standard situations and serves as a working draft.
If your case is more specific or complex, I can prepare a customized contract for you.

If interested, please contact me via e-mail, or message. We will arrange everything quickly and easily.

Final thoughts – what now?

A donation contract isn’t just a formality – it’s a legal shield, if drafted properly. And a trap, if not.

Do you want to be sure your contract will hold up even in a crisis? Get in touch and let’s schedule a meeting.