In practice, the possibility of transferring property for maintenance and care is increasingly common. This happens in the case of people who cannot bear and do not have the ability to cope with their life needs. This contract is often made in lieu of a gift deed. The reason for this is that, according to case law, heirs with a retained interest can cancel a maintenance and care contract more difficult than a donation made.

What is it about?

The subject of this type of contract can be any real estate. It is also possible to transfer several properties with the contract, and the transferor has the right to retain the right of use for life. That is to say, he remains living in the property for the rest of his life. The contract can also be concluded between spouses. It is permissible for the same persons to conclude two or more contracts for the transfer of different properties in exchange for care and maintenance.

What do you need to know from the start?

NB: A contract for the transfer of immovable property in exchange for a maintenance obligation can only be concluded between natural persons.

For further protection of the parties, a preliminary contract for the transfer of immovable property may also be concluded. Unlike the other preliminary contracts, this one for the transfer of immovable property for maintenance and care cannot be declared final in court if the owner objects.

The contract shall be concluded before a notary and shall take the form of a notarial deed. The documents required for the conclusion of a contract are the same as those required for the sale of a property: sketch, tax assessment, title deed, declarations in a form, etc.

The obligation of maintenance and care shall continue until the death of the transferor. The contract shall be null and void if the transferee knows of the transferor’s imminent and imminent death at the time of its conclusion. The contract is also voidable if an elderly person is sent to a hospice, despite payment of expenses.

A contract for the transfer of property in exchange for maintenance and care may be concluded for the future, for a past period or a mixed option.

If the type of care and maintenance is not specified in the contract, then it includes: ongoing overheads, food, hygiene, health, housekeeping and clothing costs according to need and ability. It is irrelevant whether the transferor can support himself with his income or not.

Conclusion

To avoid disputes, we advise you to describe in detail in the contract the care and the amount of maintenance, how it will be carried out, paid etc.

An agreement to transfer real estate for maintenance and care is a popular method of preserving the security of the elderly. It is common in practice, but like any real estate transfer agreement, there are a number of specifics. Our advice is to contact a property law solicitor who can guide you and help draft the agreement in a way that protects your interests as much as possible.

If you need a good attorney to draft a real estate transfer agreement in exchange for maintenance and custody, you can turn to Legal Frame. Our lawyers will assist you with consultation and preparation of all necessary documents.