Publication date: 28.05.2024
Drawing up a lifelong maintenance agreement: legal nuances and practical aspects
A lifetime maintenance contract is a specific type of civil law agreement that is gaining more and more popularity in Ukraine. Its main goal is to ensure a decent standard of living for the elderly in exchange for the transfer of their own real estate. However, in order for such drawing up an agreement to be valid and effective, it is necessary to comply with a number of legal requirements and take into account certain nuances during the conclusion of a lifetime maintenance contract.
Content of the lifetime maintenance contract
In accordance with the Civil Code of Ukraine, a lifetime maintenance contract must contain the following key elements:
1. The subject of the contract is the definition of the property (apartment, house, etc.), which is transferred by the alienator to the acquirer on the right of ownership.
2. Obligations of the acquirer - to provide maintenance in kind or in cash to the alienator until the end of his life.
3. The amount of maintenance is a specific amount or a list of services that are covered by the acquirer.
4. Term of validity of the contract - as a rule, the contract is valid for life, until the death of the alienator.
5. Rights and obligations of the parties - may include additional conditions, such as the right of the alienator to live in the provided housing, care and medical care, etc.
6. Liability of the parties – sanctions are provided for non-fulfillment or improper fulfillment of the terms of the contract.
It is worth noting that the content of the lifetime maintenance contract may vary depending on the individual needs and agreements of the parties, but it must meet the general requirements of the law.
Conclusion of the contract: step by step
The process of concluding a lifetime maintenance contract consists of several stages:
1. Preliminary consultations and agreement of conditions. At this stage, the parties discuss the details of the future agreement, determine the amount of maintenance, rights and obligations of each party.
2. Preparation of the draft contract. It is recommended to engage a qualified lawyer to draft the contract in order to avoid errors and contradictions in its content.
3. Notary certificate. A lifetime maintenance contract is subject to mandatory notarization. This is a guarantee of its legality and protection of the rights of the parties.
4. State registration. After notarization, the contract is subject to state registration in accordance with the established procedure.
5. Transfer of property and fulfillment of contract terms. After completing all the formalities, the alienator transfers the real estate to the acquirer, and the acquirer begins to fulfill his obligations regarding the maintenance of the alienator.
Advantages and risks of a lifelong maintenance contract
A lifetime maintenance agreement has both advantages and potential risks for the parties. The main advantages are:
- Ensuring a decent standard of living for the elderly.
- An opportunity for the buyer to get real estate at an affordable price.
- Tax benefits for the parties to the agreement.
At the same time, there are certain risks that must be taken into account:
- The possibility of non-fulfillment or improper fulfillment of obligations by one of the parties.
- Potential conflicts and contradictions between the parties.
- The difficulty of terminating the contract unilaterally.
To minimize risks, it is very important to carefully approach the conclusion of a lifetime maintenance contract, to involve qualified lawyers and notaries, as well as to clearly define the rights and obligations of the parties.
In summary, the conclusion of a lifetime maintenance contract requires a serious approach and compliance with legal regulations. However, if properly executed, such an agreement can become an effective tool for ensuring a decent standard of living for the elderly and a profitable way to acquire real estate for buyers. The main thing is to weigh all the "pros" and "againsts" and make a balanced decision that will meet the interests of both parties.
