Unfortunately, as practice at Alva Privacy law firm shows, most citizens understand the real legal consequences of entering into a lifetime maintenance contract after they signed it only and when difficult life circumstances force them to seek legal advice from a lawyer.
It is important to know that under a lifetime maintenance (care) contract, one party (the client) delivers the possession of a residential building, apartment, or a part thereof, other immovable property, or movable property of significant value to the other party (service provider) in exchange for the service provider's undertaking to provide the client with lifetime maintenance and/or care services
as provided in Article 744 of the Civil Code of Ukraine.
However, elderly people often become victims of fraud, signing such an agreement without understanding important legal nuances. The consequence of such legally significant actions is often a situation where the property has already been transferred but no assistance under the agreement has been given at all.
Risks of entering into a lifetime maintenance contract
When signing a lifetime maintenance contract, it is crucial to understand that ownership of immovable property (a building, apartment, land plot, or other property) is transferred to the service provider (the person who will take care of the elderly person) immediately after signing the contract. In other words, upon signing the person loses ownership rights to the property.
Therefore, even before signing the contract with a notary, it is essential to order a legal analysis of its draft. Under such circumstances, after reviewing the contractual terms, Alva Privacy lawyers often recommend that the contract explicitly stipulates the right to use such immovable (or other) property. Without this provision, there is a risk that you may be evicted from your home.
And remember that under certain contract conditions, the risk of forced eviction of the client from the apartment is not just theoretical but entirely real. Moreover, such cases have already occurred as a matter of practice!
Additionally, it is important to clearly define the specific actions the service provider must take. This eliminates the risk that the service provider, referring to an unclear contract, may simply refuse to care for the elderly person.
Lifetime maintenance: grounds for contract termination
If you or your relative find yourself in a situation where the service provider of the property is not fulfilling its obligations towards the client (the person who transferred the property), it is necessary to examine the cases in which the lifetime maintenance contract can be terminated.
By law, a lifetime maintenance contract can be terminated either voluntarily or through court proceedings. A voluntary termination occurs by mutual agreement of the parties (meaning both parties must appear before a notary and sign the corresponding agreement).
If the service provider refuses to terminate the contract voluntarily, termination is only possible through the court. Thus, the contract may be terminated at the client's request if the service provider fails to perform or performs improper its obligations. Therefore, as mentioned earlier, the contract should explicitly state the specific actions (obligations) of the service provider so that, in case of non-compliance, the client can refer to these facts and have a real opportunity to exercise its right to terminate the contract.
The burden of proving that support was provided to the client (you or your relative) lies with the service provider. Therefore, if you are confident that the service provider has not given such assistance and has no supporting evidence, you can confidently file a lawsuit requesting the termination of the contract.
Moreover, according to the case law of the Supreme Court, the heir of the client (the person who transferred the property) does not have the right to file a claim for contract termination after the client's death unless the latter invoked improper performance and filed a lawsuit during the lifetime. Therefore, if you (or a close relative) find yourself in a situation where the service provider is not fulfilling its obligations under the lifetime maintenance contract, do not delay in filing claims (in writing) and a lawsuit.
The difference between a lifetime maintenance agreement and an inheritance contract
Finally, please note that alongside lifetime maintenance agreements, the law provides for inheritance contracts, which may seem similar but have significant differences.
The main difference between these contracts is the time of transfer of title to the property. As inheritance lawyers at Alva Privacy law firm note, in an inheritance contract, this occurs at the time the individual dies, while in a lifetime maintenance contract, as already mentioned above, it is so immediately upon signing the agreement.
Given these nuances and other possible risks associated with signing a lifetime maintenance contract, we recommend consulting qualified contract lawyers to avoid potential negative consequences.
And if you or your loved ones have already found themselves in an unpleasant situation due to signing such an agreement, Alva Privacy lawyers can assist in filing a lawsuit to protect your violated rights.
Author: Lawyer Andrii Pisotskyi
