A contract on support until death (with simultaneous transfer of property) (hereinafter: a contract on support until death) obligates one party (the support provider) to support the other party or a third party (the support recipient) until his death, and the other party is obliged to transfer all or part of his property to the first party during his lifetime.
The support provider acquires things or rights that are the subject of a contract on support until death when, based on that contract, those things or rights are transferred to him in the manner of acquisition provided for by law.
A contract on support until death is strictly a formal agreement, which means that it must be concluded in writing and certified by a competent court judge or confirmed (solemnized) by a notary public or drawn up in the form of a notary act.
The support provider can simultaneously have a contract on support until death with up to three support recipients, and a contract concluded with more support recipients is null and void.
Establishment of servitude and reservation of the right on real burden
If the support recipient gives real estate, the contract will establish a residential servitude on it in his favour, if he does not expressly object to it. Also, if the support recipient gives real estate, he can determine that the real burden of support is based on it in his favour.
The land registry court will ex officio register the residential servitude in the land register at the same time as the registration of the right of ownership based on the contract on support until death.
Termination of the contract on support until death
The provisions on the termination of a contract on lifetime support apply to the termination of a contract on support until death, which means that a contract on support until death can be terminated by agreement even after its fulfilment has begun, but also unilaterally, if the support provider and the recipient under the contract are living together, and their relations have become so disturbed that living together becomes unbearable or if the other party does not fulfil its contractual obligations.
Effect of the death of the support provider on the contract
If the support provider dies before the support recipient, his rights and obligations under the contract pass to his heirs, if they agree.
This consent is given in written form certified by a judge of the competent court or confirmed (solemnized) by a notary public or drawn up in the form of a notarial act.
If the heirs do not agree, the contract is terminated.
In this case, the heirs of the support provider do not have the right to demand compensation for support already given and must return to the support recipient everything that the support provider acquired based on the contract.
If the heirs of the support provider are unable to return what the support provider acquired based on the contract, they are obliged to compensate the support recipient for the value of the acquired, and if they are unable to assume the contractual obligations, they have the right to demand compensation for the support that the support recipient received from the support provider, but they are obliged to return to the support recipient what the provider acquired based on the contract.
The amount of the compensation is determined by the court at its discretion, considering the financial situation of the support recipient and the persons who were authorized to extend the contract on support until death, as well as the rights that the support recipient exercises based on the real burden.