Polish law allows individuals who transferred property for lifelong care to request termination of the agreement under specific conditions.
What is a Life Maintenance Agreement and What Rights Does It Grant?
A life maintenance agreement involves transferring property ownership in exchange for the buyer’s commitment to provide the seller (known as the life beneficiary) with maintenance until death. It is a bilateral, paid, and mutual agreement regulated in the Civil Code.
How Does Life Maintenance Work in Practice?
In practice, the seller transfers ownership rights to the property (apartment, house) to the buyer. The latter generally accepts the life beneficiary as a household member, providing appropriate living conditions, including housing, food, clothing, and support during illness. Unless the agreement states otherwise, the buyer is also obligated to organize the seller’s funeral according to local customs.
Terminating a Life Maintenance Agreement vs. Converting to a Pension
A life maintenance agreement is a long-term relationship, which means conflicts and difficulties in maintaining proper relationships between parties may arise. Moreover, life maintenance is a permanent relationship that cannot be terminated. However, its dissolution or the conversion of some or all rights to a lifelong pension can be requested, as stipulated in Article 913 of the Civil Code.
When Can a Court Convert Life Maintenance to a Pension?
As provided in the aforementioned provision, the law allows for the conversion of life maintenance to a pension or termination of the agreement. Either party—the buyer or the life beneficiary—can make such a claim. It’s worth noting that in the case of converting life maintenance to a pension, the cause of the conflict is irrelevant; only the relationship between the parties matters.
Exceptional Circumstances: When Complete Termination is Possible
The situation differs in the case of terminating life maintenance. As emphasized in the regulations, this can occur only in exceptional circumstances. What does this mean in practice? Several specific examples can be identified.
What Are the Consequences of Terminating a Life Maintenance Agreement?
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