The Gift Law — many of you are unaware, but the legislator took the trouble to enact a law dealing with gifts transferred from one person to another. Although it is a short law, 8 sections in all, this law finds itself...
Transfer of Real Estate as a Gift
There are quite a few cases in which a property owner grants a real estate property to a family member, or even to a person who is not close to him at all, out of a desire to bequeath his assets to a person who was good to him during his lifetime, or alternatively to give an apartment to a young couple.
When things work out and there are no disputes, everyone benefits; but what is the law in the event of a crisis between family members, or perhaps the separation of a couple? Usually from this stage on, the snowball begins to roll and gather momentum, and each party tries to appropriate as many assets as possible for itself.
When it comes to a gift agreement in real estate, the court usually traces the finality of intent of the giver of the gift, while protecting the recipient’s interest of reliance. It should be emphasized at once that the finality of intent and the true intention of the giver of the gift is greater than the reliance of the recipient of the gift.
The Land Law provides that a transaction in real estate requires registration, and a transaction that is not completed by registration is regarded as an undertaking to carry out a transaction. When examining an issue that combines laws from different fields, as in the present case — the Gift Law and the Land Law — it appears that the conferral of a gift in real estate is completed only upon the registration of the ownership in the name of the recipient of the gift. If the conferral of the gift was not completed by registration, it will be possible to cancel the conferral of the gift in accordance with what is provided in the Gift Law.
Giving a Sum of Money as a Gift
If we were to count the number of stories dealing with the transfer of money from one person to another, or the assumption of obligations of a financial nature such as signing a guarantee or a promissory note for a close friend or family member, we could bind a large book of many volumes.
The question arises whether the “gift” can be taken back. Well, the Gift Law addresses these cases, and even sets out the conditions defined in the law, which have been extensively interpreted in case law, that grant the giver of the gift the possibility of retracting his promise — all in an accepted manner and in good faith.
In a case handled by our firm, one party claimed that this was a perfected gift, while the other party claimed that no such thing ever happened. It should be remembered that the party claiming a gift bears the burden of proving that the item was given to him as a gift, and if he does not succeed, he is likely to pay considerable costs.
The Amon Law Firm deals extensively with the field of the Gift Law, by advising clients and lawyers who seek to receive legal assistance in the field. If you have questions in the field, you are welcome to get in touch to check your legal standing.
