You may be wondering…

• Is gifting someone else’s property always invalid?

• What if the donor promised a gift they intend to buy later?

• What rights does the donee have if the property turns out not to belong to the donor?

• Can the donor excuse themselves by claiming ignorance?

Clients ask me…

Can someone gift something they don’t own?
Yes, the law allows gifting someone else’s property – but with key limitations. If the donor knowingly gifts someone else’s property and conceals it, they must compensate the donee for any damage.

And what if I want to gift something I will only acquire later?
Under Section 2058(2) of the Civil Code, a gift of future property is valid if the donor undertakes to acquire it. However, this can only cover up to half of the donor’s future property.

How can I protect myself if I received someone else’s property?
The donee may withdraw from the contract and claim damages if they were misled.

Gifting someone else’s property in a nutshell

• Knowingly gifting someone else’s property → valid, but the donor must pay damages if concealed.

• Gifting future property → valid only up to ½ of the donor’s future assets.

• Donee in error → may withdraw and claim damages.

• Burden of proof → donor must prove they warned the donee of risks.

Main risks and common mistakes

1. Failing to verify ownership. Especially common with real estate in land registers.

2. Concealing defects or the real owner. Donor then bears liability for damages.

3. Promises of gifts that cannot realistically be fulfilled. The donee is entitled to compensation for expenses.

4. Insufficiently specific contract. If the gift isn’t clearly described, the agreement is contestable.

Step-by-step process

1. Verify ownership. For real estate, check the land register; for cars, the vehicle register.

2. If gifting future property, explicitly state this in the agreement.

3. If gifting someone else’s property, inform the donee – otherwise, you’ll be liable.

4. Draft a precise agreement with a clear description of the gifted item.

Real-life example

A grandfather gifted his grandson a plot of land he believed was his. It later turned out that the land belonged to the municipality. The grandson had already invested money in the property. Once it was revealed that the donor wasn’t the owner, the court awarded the grandson compensation for damages, which the grandfather had to pay.

Why be careful

At first glance, gifting someone else’s property might seem like a minor formality – “I’ll acquire it anyway.” But if it turns out the donor doesn’t acquire it, or worse, concealed the fact, the donee can suffer significant losses.

Lawyer’s recommendation

• Always verify ownership in public registers before gifting.

• If gifting future property, respect the ½ limitation.

• Never conceal the fact that the property isn’t yours – it saves you liability later.

Checklist:
☑ Ownership verified
☑ Future property limited to half of assets
☑ Donee informed of risks
☑ Agreement precisely defines the subject of the gift

FAQ

Is gifting someone else’s property always invalid?
No – if the donor informs the donee, the agreement may be valid, but different rules apply.

What if the donor promised a gift but didn’t deliver?
The donee may claim reimbursement for expenses incurred in expectation of the gift.

Can the donee claim damages if they invested money into property that turned out not to belong to the donor?
Yes – courts can award compensation for such losses.