Selling a house received as a donation

Did you receive a property as a donation and are thinking of selling it? It is possible, but requires certain legal precautions.

Selling a gifted house can present obstacles related to what is known as “action for reduction” by the donor's heirs. Fortunately, there are tools and strategies for selling even before the legal terms.

Find out in this guide when you can sell, what risks you run, how to protect yourself, and what to do to avoid problems with buyers and banks.

Can you sell a house you received as a donation?

Yes, the law allows the sale of a property received as a gift. However, unlike normal sales, it is important to know that there are potential risks related to the rights of the donor's heirs.

The reason? The donated property could be subject to reduction action, a legal action that heirs can take to assert their legitimate share (i.e., the part of the inheritance that is due to them by law).

When can you sell without risk?

You can sell the property without the need for additional guarantees if:

• 20 years have passed since the donation was recorded in the public registers without any opposition
• Either 10 years have passed since the death of the donor without any action being taken by the heirs
• Either the heirs have signed a deed of renunciation (acquiescence) before a notary, declaring that they do not wish to contest the donation

What if the terms have not yet expired?

In this case, you can still sell the house safely by adopting one of the following solutions:

• Donation insurance policy: there are specific insurance policies that protect the buyer and the lender in the event of legal disputes. They are increasingly widespread and requested, especially by banks when granting a mortgage
• Rescission of the donation: it is possible to rescind the donation by returning the property to the donor, who, in turn, can sell it without restrictions. This is a notarial transaction that requires agreement between the parties
• Renunciation by heirs: the donor's heirs can formally renounce any claim to the property by signing a notarial deed. If they accept, you can proceed with the sale. If they refuse, it would be more prudent to postpone or consider taking out an insurance policy

How does a real estate donation work?

A donation is a contract for no consideration, whereby the donor transfers an asset to the donee out of generosity. When it concerns real estate or assets of considerable value, it must be done by public deed before a notary, in the presence of two witnesses.

The donee must accept the donation: no one can be forced to receive a house they do not want.

What you need to know before selling

If you have received a house as a donation and want to sell it, follow these steps:

• Check the date of the donation and verify whether 10 or 20 years have passed
• Make sure that the donor has no creditors (within 5 years, they can request the revocation of the donation)
• Check the status of the heirs and consider the possibility of a formal waiver
• Talk to a notary to evaluate your options and get personalized advice
• Consider taking out insurance against reduction actions, especially if you sell before the agreed terms

Conclusions

Selling a house received as a donation is perfectly legal, but you need to be aware of the possible legal risks. With the necessary checks and the right tools, you can sell the property in complete safety, even before the legal terms have expired.

Do you want to know if you can sell without risk? Contact one of our Toscano Insurance Brokers experts to request advice and an initial analysis of the situat