Contract for free use of real estate
This contracts outlines the conditions under which the owner lends a property temporarily to another person, for the purpose of using it, without any payment or financial compensation in return.
Description of the property: the detailed description of the real estate that is the subject of the contract. Also check template free loan agreement for cars.
Duration of use: start and end dates of the period for which the use is granted.
Purpose of use: specification of the purpose for which the property will be used by the borrower.
Responsibilities: description of the responsibilities of the parties unde the free loan template contract, such as maintaining the property in proper condition.
Condition of the property: the condition in which the property is handed over to the lessee and the condition in which it is to be returned.
Special clauses: any specific clauses or additional conditions, such as subleasing restrictions or permitted changes to the property.
Liability and indemnification: clarifications regarding the lessee's responsibility for damages or losses related to the property during the loan period.
Is it necessary to notarize a free loan agreement?
Notarization of a free loan agreement for the use of an apartment is not mandatory.
What is the maximum duration of a free loan agreement for the use of an apartment?
The law does not specify a maximum duration for free loan agreements. The duration is determined by mutual agreement between the parties. However, the duration must be reasonable and explicitly stated in the contract template.
What are the primary obligations of the borrower in a free loan agreement for the use of an apartment?
The borrower has the following primary obligations:
- to use the apartment according to the purpose established in the contract,
- to maintain the apartment and return it in the condition it was received, except for normal wear and tear,
- to bear the necessary expenses for the use of the apartment (utilities, maintenance).
The parties may also establish other essential obligations by mutual agreement through the clauses of the free loan agreement they use.
What happens if the borrower damages the apartment?
If the borrower damages the apartment provided under the free loan agreement, they are responsible for repairing the damages and may be required to pay compensation for the necessary repairs, in accordance with the contractual provisions and applicable legislation.
What can I do if I have entered into a free loan agreement but, in reality, rent is being paid?
Using a free loan agreement instead of a rental agreement to avoid paying taxes is sanctioned by law, sometimes even as a criminal offense. If you find yourself in such a situation, consult an attorney as a priority before initiating any debt recovery actions on your own.
