A Mistake in Apartment Gifting Can Cost Real Estate: Supreme Court Practice

Real estate gift agreements are often concluded between close relatives, but they frequently become the subject of disputes after changes in family relations, inheritance opening, or conflicts. In practice, recognition of a contract as invalid is often confused with its termination or cancellation, although these are different legal mechanisms.

What is a gift agreement

Relations regarding gifting are regulated by Chapter 55 of the Civil Code of Ukraine. According to Article 717 of the Civil Code of Ukraine, under a gift agreement, one party gratuitously transfers property ownership to another. If the subject of the agreement is an apartment or other real estate, it must be concluded in writing, notarized, and subject to state registration.

After the transfer of ownership rights, the donor loses any property rights to the gifted property. Therefore, changes in life circumstances, deterioration of relationships, or the desire to reclaim the apartment are not grounds for canceling the gift by themselves.

When the agreement can be challenged

A gift agreement can be declared invalid on general grounds provided by Articles 203 and 215 of the Civil Code of Ukraine.

Specifically, this is possible if a person concluded the agreement under the influence of a significant mistake (Article 229 of the Civil Code), fraud (Article 230), violence (Article 231), severe circumstances (Article 233), or did not understand the significance of their actions or could not control them (Article 225). In each case, it is the plaintiff who must prove the existence of such circumstances.

When gifting can be terminated

A separate mechanism is provided by Article 727 of the Civil Code of Ukraine.

The donor has the right to demand termination of the agreement if the donee intentionally committed a crime against them or their close relatives, creates a threat of irreversible loss of an item that has great non-property value for the donor, or treats it in such a way that it may be destroyed or significantly damaged.

The list of these grounds is exhaustive, and termination is possible only if the gifted property remains in the ownership of the donee.

Does it matter that many years have passed

It is a common belief that after several years have passed, the agreement can no longer be challenged. In fact, this is not true.

For claims to declare the agreement invalid, a three-year statute of limitations generally applies. At the same time, according to Article 261 of the Civil Code of Ukraine, its term begins from the day the person learned or could have learned about the violation of their right. For claims to terminate a gift agreement, Article 728 of the Civil Code of Ukraine establishes a special one-year statute of limitations.

Thus, the mere passage of a significant period after concluding the agreement does not automatically mean the loss of the right to judicial protection.

Problems in law enforcement

A common cause of disputes is that citizens confuse a gift agreement with a lifetime maintenance agreement. When transferring an apartment, they expect further care or financial support, although a gift agreement does not impose such obligations on the donee. This often becomes a basis for further challenging the transaction due to a mistake about its legal nature.

The greatest difficulties in disputes over gift agreements are related to proving circumstances that existed at the moment of concluding the transaction. In particular, plaintiffs need to confirm that the expression of will was not free, that they acted under the influence of a mistake or fraud, or did not understand the significance of their actions. Such circumstances are not presumed and must be supported by proper and admissible evidence.

A telling example is the Supreme Court ruling of June 10, 2026, in case No. 278/1726/24, where the plaintiff requested to declare invalid gift agreements for a residential house and land plot, claiming she mistakenly believed she was concluding a lifetime maintenance agreement. According to her, the house was her only residence, and she transferred the property to her daughter in exchange for future care and maintenance.

The Supreme Court reminded that according to Article 717 of the Civil Code of Ukraine, a gift agreement is gratuitous and does not impose an obligation on the donee to maintain the donor. At the same time, the Court noted that a mistake regarding the nature of the transaction can be grounds for declaring the agreement invalid if it existed at the time of its conclusion and is significant.

To establish the true will of the parties, it is necessary to evaluate not only the content of the agreement but also all circumstances of the case, including the donor's age and health condition, need for care, the fact of living in the disputed residence after gifting, and agreements between the parties.

In case No. 303/4829/21, the Supreme Court also concluded that a gift agreement can be declared invalid if it does not correspond to the true will of the donor. The plaintiff claimed she mistakenly believed the gift agreement was a lifetime maintenance agreement. The Court noted that to establish the true will of the person, it is necessary to consider not only the content of the transaction but also the donor's advanced age, health condition, need for external care, availability of other housing, continued residence in the apartment, and actual transfer of property.

Thus, the key in disputes over challenging a gift agreement is not the time elapsed after its conclusion but the ability to prove that the transaction was concluded in violation of legal requirements or did not correspond to the true will of the donor.

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