What is a property donation contract?

One of the basic rights of a property owner is to have the right to dispose of that property. The property owner has the right to donate or transfer it to others and is regulated by the civil code. For this donation, especially for valuable assets, drawing up a donation contract is a necessary choice to avoid future disputes. So what is a property donation contract?

According to Article 457 of the 2015 Civil Code, a property donation contract is an agreement between the parties, whereby the donating party hands over its property and transfers ownership to the donated party without requiring compensation. The gifted party agrees to receive.

Thus, this contract arises from the moment the donor transfers ownership of the property to the recipient.

How long is the land donation contract valid?

Land donation contract is a popular type of land contract today. Contracting land donation will help ensure binding rights and obligations between the parties to avoid violation of the agreement. However, in addition to issues related to the legality and terms of the contract, many people still wonder how long it is valid?

Clause 1, Article 401 of the Civil Code (CPC) 2015 stipulates: "A legally concluded contract takes effect from the time of conclusion, unless otherwise agreed or otherwise provided by relevant laws."

Article 459 of the 2015 Civil Code stipulates: "Gifts of real estate must be made in writing, notarized, authenticated or registered, if real estate must have its ownership registered according to the provisions of law. The real estate donation contract takes effect from the time of registration; If real estate does not require ownership registration, the donation contract takes effect from the time of property transfer.

At Point a, Clause 3, Article 167 of the 2013 Land Law, it is stipulated: "Contracts for transfer, donation, mortgage, capital contribution with land use rights, land use rights and assets attached to land must be notarized." or endorsement”.

Clause 1, Article 5 of the 2014 Notary Law stipulates: "A notarized document takes effect from the date it is signed by a notary public and stamped by a notary practice organization."

Thus, transfer and donation contracts are land use rights (LUR), and assets attached to land are required by law to be notarized and authenticated; must register the transfer of rights, it takes effect from the time of registration at the Land Registration Office (VPĐKĐĐ). After the contract of transfer and donation of land use rights and assets attached to the land is notarized and authenticated. The transferee submits an application to register changes in land use rights; The Office of General Affairs will receive and check the documents. If they are complete, they will proceed according to the procedure and the documents will be sent to the tax authority and the Department of Natural Resources and Environment to determine financial obligations and proceed. Change the name of the Certificate of Land Use Rights (CNQU).

Article 423 of the 2015 Civil Code stipulates contract cancellation:

"first. One party has the right to cancel the contract and not have to pay compensation in the following cases:

a) The other party's violation of the contract is the cancellation condition agreed upon by the parties;

b) The other party seriously violates contractual obligations;

c) Other cases prescribed by law.”

Can I reclaim real estate that was donated?

Currently, if the land donation contract has been notarized or authenticated and procedures for ownership conversion have been carried out, the ownership will belong to the recipient. For that reason, the donor cannot claim the above property back. However, there are some exceptional cases where it is still possible to reclaim donated land, specifically as follows:

Case 1: Article 462 of the 2015 Civil Code has regulations on the gift of property with conditions as follows:

• The donor may require the donee to perform one or more obligations before or after the donation. Donation conditions must not violate legal prohibitions or be contrary to social ethics.
• In case the obligation must be performed before the donation, if the donee has fulfilled the obligation but the donor does not hand over the property, the donor must pay the obligation that the donee has performed.
• In case the obligation must be performed after donation but the donee fails to perform, the donor has the right to reclaim the property and request compensation for damages.

Thus, if you donate the above land and are required to perform a certain obligation. If this person did not do it or did it incorrectly, you have grounds to claim it back. And note that: Right from the moment of entering into a donation contract, conditions must also be set for the recipient to comply with. Conditions are not allowed after completing the procedure for donating the property.

Case 2: You can have the land returned if you can prove that the other civil transaction is invalid according to the provisions of Article 122 of the 2015 Civil Code, as follows:

“Civil transactions that do not have one of the conditions specified in Article 117 of this Code are void, unless otherwise prescribed by this Code.”
The conditions for validity of civil transactions are specifically stipulated in Article 177 of the 2015 Civil Code as follows:

• A civil transaction is valid when all of the following conditions are met:
• The subject has civil legal capacity and civil act capacity appropriate to the established civil transaction;
• Subjects participating in civil transactions are completely voluntary;
• The purpose and content of civil transactions do not violate legal prohibitions or are not contrary to social ethics.
• The form of a civil transaction is the condition for the validity of the civil transaction in cases where it is prescribed by law.