Support Until Death Agreement

A support until death agreement is riskier for the recipient because ownership of the property passes to the provider immediately upon conclusion of the contract, and not only after death. This means that the recipient is no longer the owner of the property from the moment of signing. If the provider stops providing support, the recipient must bring court proceedings to terminate the contract and recover the property, which is complex and lengthy. There is a risk that the provider will sell the property or encumber it with a mortgage while the recipient is still living in it. By contrast, under a lifetime support agreement the recipient remains the owner until death and can simply terminate the contract if the provider fails to meet the obligations. If you nevertheless opt for a support until death agreement, be sure to agree and register a right of habitation, which guarantees that you can stay in the property regardless of any change of ownership.

The key protection under a support until death agreement is registering a right of habitation (a servitude) in the land register, which guarantees your right to live in the property until death. This right is entered in the encumbrance sheet and binds every future owner – even if the provider sells the property, you keep the right of habitation. Define the provider’s obligations in detail in the contract – the type of care, how often visits take place, financial obligations. Agree clear grounds for terminating the contract in your favour if the provider fails to perform. Include a clause on contractual penalties for non-performance. Ask the provider to document the support provided on a regular basis. Engage an independent lawyer to represent your interests when the contract is drawn up. Do not sign anything without understanding all the consequences.

Yes, under a support until death agreement the provider becomes the owner of the property immediately upon conclusion of the contract and is entitled to dispose of it, including by selling it. However, if you have registered a right of habitation in the land register, that right also binds the new owner – the new owner cannot evict you or restrict your right of use. The new owner buys the property subject to the encumbrance of the right of habitation and must respect it until your death. The provider may also encumber the property with a mortgage, but your right of habitation takes priority over encumbrances registered later. Without a registered right of habitation the situation is risky, because in theory the new owner may seek your eviction. That is why it is absolutely essential for the right of habitation to be registered in the land register at the same time as the transfer of ownership. Never sign a support until death agreement without this protection.

Termination of a support until death agreement for failure by the provider to perform is initiated by an action before the competent court. The recipient must prove that the provider failed to meet the obligations defined in the contract – for example failure to provide food, medicines or medical care, or abandonment altogether. The court assesses the seriousness and duration of the breach before deciding on termination. If the court allows the termination, the property returns to the recipient’s ownership and the provider loses all the support provided up to that point. The proceedings can be lengthy, so it is important to document every failure by the provider from the outset. It is advisable to react quickly at the first signs of trouble – written warnings to the provider and witnesses. Clear contractual provisions on what constitutes a breach make it easier to prove. Engaging a lawyer increases the chances of a successful outcome.