You may be thinking…

“Donating is just a good deed – what could possibly go wrong?”
And this is the catch. The law does not deal with “good intentions” but with precise wording and procedures. A poorly drafted donation agreement can come back to you like a boomerang – and sometimes very hard.

Clients often ask me

• Does a donation agreement always have to be in writing?

• When can I revoke a donation?

• How does donating real estate work?

• What if I want to donate but keep the right to use the property?

• Is it safe to use a free donation agreement template from the internet?

What is a donation agreement in a nutshell

A donation agreement is a legal act by which the donor transfers property to the donee free of charge. It may sound simple, but the key points are:

• Form (e.g., for real estate, the agreement must be in writing and registered in the Land Registry),

• Acceptance by the donee (a donation cannot be forced),

• Precise description of the subject of the donation (to avoid disputes).

The most common risks and mistakes

• Vague description of the donated item → the donation may be invalid.

• Failure to secure a right of use → parents donate an apartment but forget to secure a lifetime right to live there.

• Revocation of donation → the donor may demand the return of the gift if the donee behaves grossly.

• Taxes and fees → failing to consider tax obligations may result in significant back payments.

(Lawyer’s recommendation: always check in advance whether the donation has tax or inheritance implications.)

Step-by-step process

1. Decide exactly what you want to donate.

2. Check whether a written form is required.

3. Prepare a clear description of the gift (e.g., plot number, account number).

4. Consider whether you want to attach conditions or a right of use to the donation.

5. Check possible tax implications.

6. Have the agreement reviewed by a lawyer – even a small mistake can be costly.

Real-life examples

• A client donated a house to her son but forgot to secure lifetime housing rights. The result? The son sold the house and the mother ended up homeless.

• A brother donated a share of land to his sisters. Because the contract lacked a precise plot description, the Land Registry rejected the entry, and the whole contract had to be redone.

Why you should be careful with a “free template”

You can find dozens of free donation agreement templates online. It may sound tempting, but the reality is:

• they are often incomplete (missing clauses on revocation or taxation),

• outdated,

• not adapted to your specific situation.
  Using such a template is like giving someone the keys to your flat but leaving the door wide open.

Lawyer’s checklist

☑ precisely describe the donated item
☑ secure a right of use if needed
☑ take tax implications into account
☑ have signatures verified when donating real estate
☑ do not rely on internet templates as a guarantee of safety

FAQ

Does a donation agreement have to be notarized?
For real estate, signature verification is strongly recommended to ensure the Land Registry accepts the entry.

Can a donation be revoked if the donee stops maintaining the donated item?
Yes, if it constitutes gross violation of good morals.

Is a donation subject to tax?
Between close relatives usually not, but donations outside the family may be subject to income tax.