Gifting property is a common activity in daily life. In order to protect the legitimate rights and interests of the parties as well as limit disputes, anyone wishing to gift property should understand the legal provisions of this type of contract. In this article, TNTP will present the basic content you need to know about the contracts for gifts of property.
1. What is the contracts for gifts of property
Contract for gifts of property is one of the bases that gives rise to property ownership rights for the recipient. Current Vietnamese law regulates the concept of this contract in Article 457 of the Civil Code 2015.
Accordingly, a contracts for gifts of property means an agreement between parties whereby the giver delivers its property and transfers its ownership rights to the recipient without requiring compensation, and the recipient agrees to accept the gift.
2. Forms of contract for gifts of property
The form of the contracts for gifts of property will depend on the subject of the contracts. If the subject of the contract is immovable property, according to the provisions of Article 459 of the Civil Code 2015, the contract must be made in writing and notarized or certified and must be registered if the law on immovable property requires registration of ownership. The contract for a gift of immovable property shall take effect from the date of registration. In the case of immovable property for which no registration of ownership rights is required, the gift contract shall take effect from the date on which the property is delivered.
For instance, According to the provisions of Article 167 and Article 188 of the Land Law 2013, the contract for gifts of land use rights and land-attached assets (houses, construction works attached to land) must be notarized or certified, meanwhile, the donation must be registered the land registration agency and takes effect from the time of registration in the cadastral records.
If the subject of the contract for a gift is movable property, the law does not have mandatory regulations on the form of the contract. Thus, the contract can be expressed verbally, in writing or through specific acts. However, for a movable property that requires ownership registration, the contact must be made in writing and ownership registered according to the provisions of law. For movable property where the law requires registration of ownership, the contract takes effect from the date of registration.
For example, If the subject of the contract is a car, the contract must be made in writing and registration procedures must be carried out at the Vehicle registration authorities according to the provisions of Circular 24/2023/TT-BCA.
3. Legal characteristics of contract for gifts of property
Firstly, the subject of this contract is the property that is allowed to circulate. Prohibited objects in the contract are types of property whose transactions are prohibited by law. In general, the subject matter of the contract for gifts of property will include movable and immovable property.
Secondly, the contract for gifts of property is a contract without compensation and is a unilateral contract. Accordingly, one party (the giver) gives the other party (the recipient) a material benefit (gifts of property) without requiring the other party to give it another similar material benefit. The recipient does not have to pay any money or other material benefits. However, if the contract is conditional, this contract becomes a bilateral contract. The giver may require the recipient to perform one or more obligations before or after receiving of property. If the obligation must be performed after giving but the recipient fails to perform, the giver has the right to reclaim the property and request compensation for damages.
Thirdly, the contract for gifts of property is a real contract because the effective date of the contract is the time the recipient receives the property or from the time of registration if the property must be registered according to the provisions of law.
Above is the content of the article “Contracts for gifts of property – Basic contents you need to know”. Hope our sharing is useful for those interested in this issue.