Real Estate Donation – How It Works and What Are the Notarial Fees?

A donation of real estate is a process that requires compliance with specific legal procedures, especially in Poland, where it is necessary to draft a notarial deed. Below, we outline the steps to help you understand this process.

1. Preparation for Donation

  1. Identifying the Property: Ensure that the property you intend to donate is legally yours. Verify whether there are any encumbrances, such as mortgages.
  2. Selecting the Recipient: Decide to whom you want to donate the property. This could be a family member, friend, or another individual.

2. Consultation with a Notary

  1. Choosing a Notary: Select a notary who will be responsible for drafting the notarial deed.
  2. Document Preparation: The notary will require various documents, including:
  3. Documents confirming ownership of the property (e.g., purchase deed, extract from the land and mortgage register).
  4. Extract from the land register to confirm ownership rights.
  5. Extract from the register of premises if the donation concerns a residential or commercial unit.

3. Drafting the Notarial Deed

  1. Signing the Deed: After the notarial deed is prepared, both parties—donor and recipient—must sign the document in the presence of the notary.
  2. Content of the Deed: The notarial deed should include details such as the parties' data, a description of the property, the donor's declaration, and the conditions of the donation.

4. Taxes and Formalities

  1. Donation Tax: In Poland, a donation of real estate may involve an obligation to pay inheritance and donation tax. It's worth checking what tax exemptions might apply, especially for donations between close relatives.

Summary

The process of donating real estate in the form of a notarial deed requires diligence and adherence to specific procedures. Cooperation with a notary and proper preparation of documents are key elements to ensure the transaction is carried out correctly. Understanding the tax obligations and formalities is also crucial to avoid unpleasant surprises after the donation is completed.