WHAT IS A LIFE CONTAINMENT AGREEMENT AND WHAT IS IT DIFFERENT FROM A GIFT AGREEMENT AND AN INHERITANCE AGREEMENT?

 Due to legal ignorance, the victims of fraud are often the elderly and lose ownership of their homes. And unscrupulous buyers like to use for this purpose the contract of life maintenance (or it is called care). Therefore, it is advisable to understand what is a contract of life maintenance and how it differs from the contract of gift and inheritance contract?

 Such a contract is usually concluded by persons in need of care and assistance, the elderly, single married couples in order to ensure their maintenance and care for life.

 The essence of the contract is that the person (alienator) transfers ownership of real estate, such as an apartment or house, or part or valuable movable property to another person (purchaser), who undertakes to provide the alienator with maintenance, care and care for life. And in the event of the alienator's death, the purchaser undertakes to bury him, even if this was not specified in the contract of life maintenance. The main purpose of this agreement is the condition of receiving material support, care, care, receiving services that the alienator needs in exchange for property. The parties to the contract may independently determine the types, size, scope and frequency of provision of material support and care.

 A contract of lifetime maintenance is concluded in writing and is subject to notarization, and if the real estate is transferred to the state registration. Ownership of property transferred under this agreement arises from the moment of notarization or state registration, if the agreement is subject to such registration.

 At the same time, the property right of the purchaser under the contract of life maintenance is limited. This means that the purchaser of the property until the death of the alienator has no right to sell, donate, exchange, pledge or otherwise alienate such property. Nor can it be subject to recovery on the part of the purchaser.

The difference between a lifetime maintenance agreement and a gift agreement

 In practice, there are many cases when legally ignorant people make mistakes about the legal nature of the contract of gift, mutual rights and obligations, and concluding it, consider such a transaction as a contract of life maintenance. And this is a favorite tool in the hands of fraudsters.

 Under the donation agreement, one person (the donor) transfers property (gift) to another person (the donee) free of charge.

 The contract of gift of real estate is also concluded in writing, subject to notarization and state registration.

Main differences:

- In contrast to the contract of lifetime maintenance, the moment of concluding the contract of gift is the transfer of property, except when the property under the contract must be transferred in the future. In this case, the right of ownership arises from the moment of acceptance of the gift.

- The conditional donation contradicts the requirements of the Civil Code of Ukraine, which defines the donation agreement as a gratuitous transfer of property to another person. The purpose of the gift agreement is to transfer property to another person only free of charge and without mutual remuneration. And if the contract obliges the donee to perform in favor of the donor any actions of a property or non-property nature, then such an agreement is not a contract of gift in nature.

- After concluding the donation agreement, the donor completely loses the right of ownership of his property and any rights to it. After a person has donated property, the gifted person has the right to evict the donor from the home, demand that he transfer the property to him, the gifted person has the right to live in the donated house or apartment and prohibit the use of it.

 So be careful and cautious! If you are offered a gift of an apartment in exchange for maintenance and assistance, most likely - it's scammers.

How is a lifetime maintenance agreement different from an inheritance agreement?

 By its legal nature, a contract of life maintenance is also similar to a contract of inheritance. The parties to the inheritance agreement are also the owner of the property (alienator) and the purchaser, who is obliged to comply with the orders of the owner of the property and who in case of his death acquires ownership of his property. The notary, who certifies the inheritance contract, imposes a ban on the alienation of property specified in this contract.

 The inheritance contract differs from the contract of life maintenance at the moment of acquisition of the property right. Under the contract of life maintenance, the right of ownership arises from the moment of the certificate of the contract or the state registrations, and under the hereditary contract - from the moment of death of the person of the alienator. That is, the purchaser under the inheritance contract during the life of the alienator has the right only to acquire the right to such property in the future in the case of all the conditions specified in the contract.

 The above transactions are identical in terms of the sole intention of the owner to alienate the property in favor of another person, and they are easy to confuse, which plays into the hands of fraudsters. Therefore, it is necessary to conclude such agreements only with the checked lawyers whom you trust.