Gift Agreement and Ways to Revoke It

A gift agreement under Georgian civil law is one of the most common gratuitous transactions, whereby one person (the donor) voluntarily transfers ownership of their property to another person (the donee). In practice, gifting is often perceived as a simple and safe way to transfer property; however, from a legal perspective, it is a high-risk transaction, especially when the subject of the gift is real estate or a valuable asset.

According to the Civil Code of Georgia, the essential characteristic of a gift agreement is its gratuitous nature, meaning that the transfer of property is not connected to any reciprocal obligation or financial benefit. Gift agreements are usually based on trust and goodwill and are frequently used between family members and close relatives. In practice, however, this very “family trust” often becomes the source of legal mistakes, when the donor fails to fully assess the legal consequences of the gift.

Upon execution of a gift agreement, the donee becomes the full legal owner of the property. This means the donee is free to dispose of the gifted property - to sell it, gift it further, lease it, or encumber it with a mortgage. The donor, on the other hand, completely loses any rights or control over the gifted property.

For this reason, a gift agreement is considered an irreversible transaction and requires a carefully considered decision. In practice, donors often attempt to recover gifted property after the transaction, but the legal grounds for doing so are strictly limited.

The gifting of real estate is permitted only in written form and requires mandatory notarization. Notarization is not a mere formality - it ensures a clear expression of the parties’ intent and significantly reduces the risk of future disputes.

A notarized agreement serves as the basis for registration of ownership rights in the Public Registry. Once registered, the donee fully exercises the rights of ownership, while the donor retains no legal leverage over the property.

With respect to movable property, the law applies less stringent requirements and, in certain cases, recognizes oral agreements. Nevertheless, in practice, a written agreement is always safer and facilitates proof in the event of a dispute.

Although a gift agreement is generally considered irreversible, the Civil Code of Georgia allows for its revocation in exceptional circumstances.

The main grounds for revoking a gift include:

◼ ingratitude or offensive conduct by the donee directed against the life, health, dignity, or property interests of the donor or their close relatives;

◼ the donor’s severe financial hardship arising after the gift, where the gifted property is necessary to ensure the donor’s minimum standard of living (provided the donor did not intentionally or through gross negligence cause such hardship);

◼ breach of a condition stipulated in the gift agreement, where the gift was subject to a specific obligation.

In all such cases, revocation of a gift may be sought only through court proceedings, and the burden of proof rests entirely with the donor. The law establishes a one-year limitation period - a gift may be revoked within one year from the moment the donor becomes aware of the circumstances giving rise to the right of revocation.

A gift agreement is not a mere formality - it is a transaction with serious and often irreversible legal consequences. The risks are particularly high when gifts are made within family relationships without clearly defined written conditions.

Before gifting property, it is advisable to seek professional legal advice in order to avoid legal and financial complications that are often impossible or extremely difficult to remedy at a later stage.