A real estate gift contract is a legal act that allows the donor to transfer ownership of a real estate to the donee free of charge, under the title of gift.
A real estate gift agreement is the most common way for the ownership of a real estate to be transferred from one person to another free of charge, i.e. without any monetary consideration. During the gift, the donor gives the real estate with the intention that it will become the property of the other party, and does not ask for any consideration in return. The involvement of a lawyer is mandatory for a real estate gift agreement, and it cannot be omitted.
Gift giving is special in several respects. On the one hand, it constitutes an exception to the presumption of reciprocity, and on the other hand, the return of the donated property may also be considered if the circumstances support this.
In the Hungarian legal system, the gift of real estate is subject to tax, meaning that the person receiving the gift must pay a tax, the general rate of which is 18% of the value of the real estate. However, in certain cases, the gift may be exempt from tax. The most common such cases are the following:
It is important that the contract prepared by the lawyer contains the data necessary to enforce the duty exemption. Duty exemption is not automatic, the recipient must request it from the tax authorities. It is particularly important that the lawyer is aware of the duty rules and draws the client's attention to them, as this can save the client a significant amount of money.
The possibility of reclaiming a gift is special because it is a legal transaction that has already been completed and circumstances that occur subsequently create the basis for reclaiming the gift. These circumstances are also listed in the law:
Reclaiming property cannot be easily accomplished, and legal advice is definitely required for the correct procedure.
Gifting real estate is a significant legal act that offers special rules and options. If you are considering gifting real estate, it is a good idea to seek legal advice to ensure that you comply with all legal requirements and that the contract accurately reflects your intentions.
Our office has many years of experience at its disposal and provides professional legal services in a wide variety of real estate transactions, from making a purchase offer to completing the land registry procedure.
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