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The contract of the gift of the real estate must be concluded in writing. The form of the contract is one of the essential conditions for the validity of the contract itself. The contract must be concluded in front of the notary in the form of a notary record.
The contract should contain basic information about the donor and the recipient, a description of the real estate being donated, a statement that the donor expresses gratitude for the gift received, as well as any other conditions agreed between the contracting parties.
As a rule, the contract includes the Clause intabulandi, which represents an explicit and strictly formal statement of will of the land registry predecessor – the donor, by which he declares that he agrees to transfer his right of ownership to the recipient from the contract on the gift of unencumbered property. Clausula intabulandi can be given in the contract or in a separate submission or document. The price of notarizing the contract depends on the market value of the immovable property, which is determined by the notary ex officio. The notary calculates his fee, the costs of certification, in accordance with the provisions of the valid notary tariff. If the real estate is gifted to a child or spouse, the notary will have the right to charge only 50% of the applicable tariff. The documents for the gift contract that must be presented to the notary are valid identity cards or travel documents of the donor and the recipient, the legal basis for the acquisition of real estate by the recipient, and possibly proof that the donor and the recipient are related in the first line of succession. The recipient of the gift becomes the holder of the property right to the immovable property at the moment when he is registered in the public register as the holder of the property right to the immovable property. The obligation to pay taxes on real estate gift contracts is provided for in the provisions of the Law of the Property Taxes. The same law provides for tax exemption if the obligee is in the first line of succession in relation to the donor (example: gift of real estate from parent to child; agreement on the gift of an apartment between spouses). In other cases, the tax base is determined according to the market value of the real estate obtained from the competent Tax Administration, while the tax base can amount to 1.5% or 2.5%, depending on the inheritance order.
A gift contract for an object can also have a co-ownership share. In these situations, the question is often asked whether the imperative provisions related to the right of pre-emption must be applied? The rules of the right of first refusal will not be applied in this case, because the rules of the right of first refusal apply only when it comes to the sale of co-ownership shares. Therefore, these provisions are expressly applied to burdensome legal transactions, which a gift contract by its legal nature is not.