The procedure for drawing up an agreement for the free use of non-residential premises. Do I need to register?

We constantly come across agreements for gratuitous use, sometimes without even suspecting that this relationship has arisen. We can transfer things that belong to us for use without charging for it or demanding anything in return - this is the gratuitous use of property.

If small everyday transactions do not usually require recording on paper, then when transferring expensive items, it is better to document everything and correctly draw up a contract for gratuitous use. This is especially worth doing when concluding an agreement for the free use of residential premises or a car.

Let's determine what rights and obligations arise when concluding an agreement, for how long it can be concluded, how to formalize the agreement in writing, what consequences may arise when transferring property for free use.

The concept of a free use agreement

Under a gratuitous use agreement, one party transfers certain things to the other for temporary use without payment for use. Any movable and immovable things can be transferred, including land plots, enterprises, buildings, residential premises, and transport. The main thing is that these things are not consumable (not changed or lost as a result of use). That is, it is impossible to transfer for free use, for example, food, fuel and lubricants, materials and semi-finished products.

Another name for a gratuitous use agreement is a loan agreement . These concepts are equivalent and can be used simultaneously in contractual relations. Accordingly, the person who transfers a thing for free use is called a lender . The person receiving the thing is the borrower . The lender can be either the owner of the property or other persons by proxy on behalf of the owner. The borrower can be any legally capable person.

A loan agreement must be distinguished from a lease agreement. The main difference is the free use of property. Moreover, if the agreement is in the nature of a loan agreement, but there is no indication of the gratuitous use of property, it is considered that the parties have entered into a lease agreement. An agreement for gratuitous use should also be distinguished from simple everyday relationships (intrafamily or friendly), since they are not of a property nature and are not directly regulated by civil law.

The free use agreement is concluded for a certain period. If the term is not specified in the contract, then it is considered to be concluded for an indefinite period.

The law does not provide for a mandatory written form of an agreement for gratuitous use, therefore it can be concluded both in writing and orally, and at the request of the parties it can be certified by a notary.

Transfer of an item under a loan agreement

Items under a free use agreement must be transferred in proper condition, with all necessary documents and accessories. The consequences of transferring things without accessories and documents, if without them the thing cannot be used, entail the right of the recipient to demand the provision of these accessories and documents or termination of the contract and reimbursement of expenses incurred.

If there is a refusal to transfer an item after concluding a contract for gratuitous use, the recipient also has the right to demand termination of the contract and compensation for expenses incurred.

If defects in items are discovered, the recipient has the right to demand:

• free elimination of deficiencies;
• reimbursement of expenses for eliminating deficiencies;
• early termination of the contract and compensation for real damage incurred by it: actual costs and losses.

If the lender refuses to return the item, he submits: A statement of claim to recover property from illegal possession.

Responsibilities for maintaining the item by the borrower

In general, the borrower is obliged to maintain the received item in good condition and bear all costs of its maintenance. In this case, the borrower is responsible for both current and major repairs. These rules apply unless the parties to the contract have determined a different order of contents of the thing.

The risk of accidental loss or accidental damage to property rests with the owner. However, the borrower bears this risk if:

• the thing was lost or damaged due to its use by the borrower not in accordance with the agreement or the purpose of the thing;
• the borrower transferred it to a third party without the consent of the lender (if there was consent, this risk is borne by the lender);
• the borrower, under the circumstances, could have prevented the death or damage of the item by sacrificing his own, but did not do so.

The listed cases are determined on the basis of the borrower’s obligation to take care of the safety of the property received for use and to maintain integrity in the relationship between the parties.

Features of drawing up a standard agreement

The civil law does not contain special requirements for the form of a real estate loan agreement, therefore the general provisions of Chapter. 9 of the Civil Code of the Russian Federation on the form of transactions. A simple written form must be followed for a real estate loan . Failure to comply with the form makes it impossible to refer to witness testimony in the event of a dispute between the parties to the legal relationship.

However, there is one exception. If the real estate that is the subject of the agreement is an object of cultural heritage, and the agreement is concluded for a period of one year or more, then such a transaction must be formalized in writing and is subject to state registration.

The concept of cultural heritage objects is contained in a special regulatory act (Federal Law dated June 25, 2002 N 73-FZ), regulating their legal status.

An essential (those without which the agreement is not considered concluded) condition of a real estate loan agreement is the subject matter condition. The contracting parties must necessarily agree on the property that is transferred for use. The document must contain data that individualizes the item:

• address;
• square;
• other characteristics.

Also, as a rule, such a document states:

• information about the parties between whom the agreement is concluded;
• rights and obligations of the parties;
• conditions for use of property (maintenance costs, etc.);
• term;
• liability of the parties under the contract;
• details of the parties, etc.

We do not recommend completing the documents yourself. Save time - contact our lawyers by phone:

8 (800) 302-76-94

If the conditions for the use of non-residential space are not specified in the agreement, the borrower undertakes to use it in accordance with its purpose.

The borrower must properly maintain the premises , carry out current and major repairs, therefore, in fact, the transaction is not entirely free of charge for the lender. Moreover, the cost of inseparable improvements to non-residential premises, which was not agreed upon with the lender, remains with him without the obligation to reimburse the costs to the borrower.

Termination and termination of the free use agreement

The lender may make demands for termination of the loan agreement in cases where the borrower:

• does not handle the thing properly or uses it not in accordance with the contract or its purpose
• does not keep the item in good condition
• transferred it to a third party without the consent of the lender

The grounds giving the borrower the right to terminate the contract early are related to the discovery of defects in the thing that make its normal use impossible (provided that the borrower did not know and could not know about them at the time of concluding the contract), and with the unsuitability of the thing for use due to circumstances, for which the borrower is not responsible. In addition, the requirement for early termination of the contract is recognized as justified if, at its conclusion, the lender did not warn about the rights of third parties to the transferred thing, as well as in the case of failure to transfer the thing or its accessories and documents related to it.

Early termination of the contract at the request of one of the parties (if the other party objects) is carried out by a court decision (Statement of Claim for Termination of the Contract).

Before going to court, it is mandatory to complete the pre-trial procedure: Claim for termination of the contract.

Each of the parties has the right at any time to cancel a contract for gratuitous use concluded without specifying a period by notifying the other party one month in advance, unless the contract specifies a different period.

The borrower is given the right to cancel the gratuitous use agreement at any time, even when it has a specified validity period. The application for refusal in these cases must be sent to the lender no later than one month in advance.

The lender is not given the right to unilaterally withdraw from an agreement concluded for a certain period, and he can only demand its early termination.

The contract for gratuitous use is terminated due to the expiration of the period established in it. In addition, it provides for the termination of obligations under the gratuitous use agreement in the event of the death or liquidation of the borrower.

AGREEMENT FOR FREE USE (LOAN) OF MOVABLE PROPERTY N__
_____________ "__" ________ 20__

______________, hereinafter referred to as the "Lender", represented by __________, acting___ on the basis of ____________, on the one hand, and ______________, hereinafter referred to as the "Borrower", represented by ____________, acting___ on the basis of ________, on the other hand, collectively referred to as the "Parties" , and individually the “Parties”, have entered into this agreement (hereinafter referred to as the Agreement) as follows.

1. THE SUBJECT OF THE AGREEMENT

1.1. The Lender undertakes to transfer for free use to the Borrower the movable property named in Appendix No. 1 “List of Transferred Property” to the Agreement (hereinafter referred to as the Property), and the Borrower undertakes to return the Property in the manner and within the time limits established by the Agreement. 1.2. The Property transferred for free use is the property of the Lender. 1.3. Lender (select the one you need) guarantees to the Borrower that at the time of conclusion of the Agreement the Property is not in dispute or under arrest, is not the subject of pledge and is not encumbered by other rights of third parties. — notifies the Borrower that at the time of conclusion of the Agreement the Property has the following encumbrances: _________________________ (for example, “... is the subject of pledge under the pledge agreement No. _____ dated “____” __________ _____, concluded between the Lender and _______________ (the pledgee is indicated)”). 1.4. The name, purpose, quantity, cost, accessories of the Property, as well as related documentation are indicated in the list of transferred property (Appendix No. 1).

2. RIGHTS AND OBLIGATIONS OF THE PARTIES

2.1. The lender is obliged: 2.1.1. Prepare the Property for transfer, including drawing up an act of acceptance and transfer of movable property in the form agreed upon in Appendix No. 2. 2.1.2. Transfer to the Borrower the Property along with all its accessories and related documentation according to the acceptance and transfer certificate of movable property within the period before “___” __________ 20__. The acceptance and transfer certificate of movable property, signed by the Parties, is an integral part of the Agreement. 2.1.3. Carry out at your own expense (select the one you need; if the responsibilities for performing the relevant type of repair are not assigned to the Borrower or he is assigned responsibilities for all types of repairs, this paragraph should be deleted) - major repairs of the Property at least _____ in _____. — major repairs of the Property no less than _____ in _____, as well as its current repairs no less than _____ in _____. — current repairs of the Property at least _____ in _____. 2.2. The borrower is obliged to: 2.2.1. Before signing the act of acceptance and transfer of movable property, inspect the Property and check its condition. 2.2.2. Bear the costs of maintaining the Property and carry out at your own expense (select the one you need; if the responsibilities for performing the relevant type of repair are not assigned to the Lender or he is assigned responsibilities for all types of repairs, the relevant provisions of this paragraph should be deleted) - routine repairs of the Property at least _____ V _____. - current repairs of the Property no less than _____ in _____, as well as its major repairs no less than _____ in _____. — major repairs of the Property at least _____ in _____. 2.2.3. Use the Property for its intended purpose. 2.2.4. At the end of the Agreement or within _____ (__________) business days after its early termination, return the Property to the Lender (select the one you need) - in the condition in which it was received, taking into account normal wear and tear. - in the following state _________________________. 2.2.5. Prepare the Property at your own expense for return to the Lender, including drawing up an act of return of movable property in the form agreed upon in Appendix No. 3. The act of return of movable property, signed by the Parties, is an integral part of the Agreement. 2.2.6. When returning the Property, return to the Lender (select the required one or provide another condition) - the entire set of technical documentation received from the Lender under the act of acceptance and transfer of movable property. — originals of technical documentation received from the Lender under the act of acceptance and transfer of movable property. - ___________________________.

3. PROPERTY IMPROVEMENTS

3.1. Separable improvements to the Property made by the Borrower are the property of (select the one you need) - the Borrower. - Lender. 3.2. The Borrower has the right, with the written consent of the Lender, to make inseparable improvements to the Property. After termination of the Agreement (select the one you need), the Lender is obliged to reimburse the Borrower for the cost of inseparable improvements. — the cost of inseparable improvements is not reimbursed to the Borrower.

4. RESPONSIBILITY OF THE PARTIES

4.1. For violation of the terms of transfer (return) of the Property, the Party that violated the Agreement is obliged to pay the other Party (at its request) a penalty (penalty) in the amount of _____ (__________) percent of the cost of the Property not transferred on time for each day of delay. 4.2. The Party that fails to fulfill or improperly fulfills its obligations under the Agreement is obliged to compensate the other Party for losses. 4.3. In all other cases of failure to fulfill obligations under the Agreement, the Parties are liable in accordance with the legislation of the Russian Federation.

5. CIRCUMSTANCES OF FORCE MAJEURE (FORCE MAJEURE)

5.1. The parties are released from liability for non-fulfillment or improper fulfillment of obligations under the Agreement if proper fulfillment turned out to be impossible due to force majeure, i.e. extraordinary and unavoidable circumstances under given conditions, which are understood as: _________________________ (prohibited actions of the authorities, civil unrest, epidemics, blockade, embargo, earthquakes, floods, fires or other natural disasters). 5.2. The Party is obliged to notify the other Party of the occurrence of these circumstances within _____ (_________) business days. 5.3. A document issued by _________________________ (authorized government body, etc.) is sufficient confirmation of the presence and duration of force majeure circumstances. 5.4. If force majeure circumstances continue to apply for more than _____, then each Party has the right to unilaterally withdraw from the Agreement.

6. VALIDITY, CHANGES AND EARLY TERMINATION OF THE AGREEMENT

6.1. The Agreement was concluded (select the one you need) - for a period of up to "___" __________ _____. If the Borrower continues to use the Property after the expiration of the Agreement in the absence of objections from the Lender, the Agreement is considered renewed on the same terms for an indefinite period. - For undefined period. 6.2. All changes and additions to the Agreement are valid if made in writing and signed by the Parties. The corresponding additional agreements of the Parties are an integral part of the Agreement. 6.3. The Agreement may be terminated early by agreement of the Parties, or at the request of one of the Parties in the manner and on the grounds provided for by the legislation of the Russian Federation.

7. DISPUTE RESOLUTION

7.1. All disputes related to the conclusion, interpretation, execution and termination of the Agreement will be resolved by the Parties through negotiations. 7.2. If an agreement is not reached during negotiations, the interested Party shall submit a claim in writing, signed by an authorized person. The claim is sent in any of the following ways: — by registered mail with acknowledgment of delivery; - courier delivery. In this case, the fact of receipt of the claim must be confirmed with a receipt, which must contain the name of the document and the date of its receipt, as well as the surname, initials, position and signature of the person who received this document. The claim entails civil consequences for the Party to which it is sent from the moment it is delivered to the specified Party or its representative. Such consequences also arise in cases where the claim was not served on the addressee due to circumstances beyond his control. A claim is considered delivered if it: - was received by the addressee, but due to circumstances depending on him, was not delivered or the addressee did not familiarize himself with it; - delivered to the address indicated in the Unified State Register of Legal Entities or named by the addressee himself, even if the latter is not located at such an address. 7.3. The claim must be accompanied by documents substantiating the demands made by the interested Party (if the other Party does not have them), and documents confirming the authority of the person who signed the claim. These documents are submitted in the form of duly certified copies. A claim sent without documents confirming the authority of the person who signed it is considered unsubmitted and is not subject to consideration. 7.4. The Party to which the claim is sent is obliged to consider the received claim and notify the interested Party in writing about the results within ___ (_____) business days from the date of receipt of the claim. 7.5. In the event of failure to resolve disagreements through the claim procedure, as well as in the event of failure to receive a response to the claim within the period specified in clause 7.4 of the Agreement, the dispute is referred to the court at the location of the defendant in accordance with the legislation of the Russian Federation.

8. FINAL PROVISIONS

8.1. The Agreement comes into force from the moment it is signed by the Parties. 8.2. Unless otherwise provided by the Agreement, the Parties may send notices and other legally significant messages by fax, e-mail or other method of communication, provided that it allows one to reliably determine who the message came from and to whom it was addressed. 8.3. The Agreement is drawn up in two copies, one for each of the Parties. 8.4. Attached to the Agreement are: - a list of transferred property (Appendix No. 1); — act of acceptance and transfer of movable property (Appendix No. 2); — act of return of movable property (Appendix No. 3); — ________________________________.

9. ADDRESSES, DETAILS AND SIGNATURES OF THE PARTIES

Lender Borrower

Name: ______________________ Name: ____________________ Address: _____________________________ Address: ___________________________ Telephone/Fax:_______________________ Telephone/Fax:_____________________ Email:__________________ Email:________________ OGRN ______________________________ OGRN _____________________________ Taxpayer Identification Number ________________________________ Taxpayer Identification Number ______________________________ KPP ________________________________ KPP ______________________________ Account ________________________________ Account ______________________________ in ___________________________________ in ________________________________ C/s ________________________________ C/s ______________________________ BIC ________________________________ BIC ______________________________ On behalf of the Lender On behalf of the Borrower ____________________ (__________) ___________________ (_________)

M.P. M.P.

——————————————————————

Free use agreement template

FREE USE AGREEMENT

g. ________________ “___”__________ ____ g.

I, _______________________________________,

hereinafter referred to as the “Lender”, on the one hand, and

I, _______________________________________,

hereinafter referred to as the “Borrower”, on the other hand, have entered into an agreement on the following:

1. SUBJECT OF THE AGREEMENT

1.1. Under this agreement, the Lender transfers and the Borrower accepts for temporary free use the property belonging to the Lender: __________.

1.2. Together with the property specified in clause 1.1 of this Agreement, the following documentation is transferred to the Borrower: __________ (passport, operating instructions, etc.) and accessories: __________.

1.3. The borrower will use the property in accordance with its intended purpose for __________.

1.4. The property is provided to the Borrower for a period of up to "____"________ ____.

1.5. The parties valued the transferred property at _____ rubles.

1. RIGHTS AND OBLIGATIONS OF THE PARTIES

2.1. The lender is obliged:

2.1.1. Within the period before “____”________ ____, transfer the property to the Borrower according to the acceptance and transfer certificate, which becomes an integral part of this Agreement from the moment it is signed by the Parties.

2.1.2. Provide the property in good condition, suitable for its intended use. Existing defects of the property are reflected in the acceptance and transfer certificate.

2.2. The borrower is obliged:

2.2.1. Use the property for its intended purpose.

2.2.2. Maintain the property in good condition, including carrying out routine and major repairs, and bear all costs of its maintenance.

2.2.3. Immediately warn the Lender (if discovered) about the unsuitability or poor quality of the property and stop using it.

2.2.4. If the property is out of order due to improper use by the Borrower, repair it or reimburse the Lender for repair costs.

2.3. The borrower has the right to return the property ahead of schedule.

2.4. When returning property, it is inspected and verified, and an act of return of property is drawn up.

1. RESPONSIBILITY OF THE PARTIES

3.1. The Party that fails to fulfill or improperly fulfills its obligations under this Agreement is obliged to compensate the other Party for losses caused by such failure.

3.2. The Borrower shall compensate the Lender for losses if they arose as a result of the culpable actions or inaction of the Borrower.

1. RISK OF ACCIDENTAL DEATH OR ACCIDENTAL DAMAGE TO PROPERTY

4.1. The risk of accidental loss or accidental damage to the Property is borne by the Lender, except for the cases specified in clause 4.2 of this Agreement.

4.2. The Borrower bears the risk of accidental death or accidental damage to the Property if the Property is lost or damaged due to the fact that he did not use it in accordance with this Agreement or the purpose of the Property or transferred it to a third party without the consent of the Lender. The borrower also bears the risk of accidental death or accidental damage to property if, taking into account the actual circumstances, he could have prevented its death or damage by sacrificing his property, but chose to keep his property.

1. FINAL PROVISIONS

5.1. Any changes and additions to the Agreement are valid provided that they are made in writing and signed by the parties.

5.2. All notices and communications related to the execution of the Agreement must be sent in writing. Messages will be considered duly executed if they are sent by registered mail or delivered personally to the postal addresses of the Parties and delivered against signature.

5.3. This Agreement comes into force from the moment it is signed by the Parties and is valid until the Parties fully fulfill their obligations under it.

5.4. This Agreement is drawn up in two copies having equal legal force, one copy for each of the Parties.

5.5. An integral part of the Agreement are:

5.5.1. The act of acceptance - transfer of property.

5.5.2. Property return act.

1. ADDRESSES AND SIGNATURES OF THE PARTIES

Lender: _________(_________________________________),

Borrower: _________(_________________________________).

Free use agreement

AGREEMENT N _____ gratuitous use of property

______________ "__"________ ____

Gr. ___________, hereinafter referred to as the “Lender”, and ___________ represented by _________________, acting on the basis of __________, hereinafter referred to as the “Lender”, have signed this Agreement as follows:

1. THE SUBJECT OF THE AGREEMENT

1.1. The Lender transfers to the Borrower the property specified in clause 1.2 of the Agreement (hereinafter referred to as the “Property”) for temporary free use, and the Borrower undertakes to return this Property in the condition in which he received it, taking into account normal wear and tear. 1.2. Under this Agreement, the following Property is transferred for free use: - ___________________________________________________________________; — ___________________________________________________________________; - ___________________________________________________________________. 1.3. The property belongs to the Lender by right of ownership. 1.4. The Property is transferred to the Borrower in accordance with the Property Transfer Act and returned to the Lender in accordance with the Property Return Act. These acts are drawn up and signed by the Lender and the authorized representative of the Borrower. 1.5. The borrower will use the property for business activities.

2. OBLIGATIONS OF THE PARTIES

2.1. The Lender is obliged: - to transfer the Property simultaneously with the signing of the Agreement in a condition corresponding to its purpose; — transfer documentation on the use of the Property simultaneously with the transfer of the Property. 2.2. The Borrower is obliged: - to use the Property exclusively for _____________ for its intended purpose; — ensure the safety of the Property; - at your own expense, carry out current and major repairs of the Property, bear all expenses for its maintenance, and, if necessary, make improvements to the Property. In this case, the Borrower is obliged to make inseparable improvements with the consent of the Lender; - at the end of the Agreement, return the Property to the Lender in the condition in which he received it, taking into account normal wear and tear, as well as return the received documentation for the use of the Property. 2.3. Each of the parties has the right at any time to cancel the Agreement for free use, concluded without specifying a period, by notifying the other party ___ month in advance.

3. RESPONSIBILITY OF THE PARTIES

3.1. For failure to fulfill obligations, the parties are liable in accordance with the terms of the Agreement and the legal acts of the Russian Federation. 3.2. For delay in returning the Property at the end of the Agreement, the Borrower shall pay the Lender a penalty in the amount of ___% of the market value of the Property for each day of delay.

4. VALIDITY AND PROCEDURE FOR TERMINATION OF THE AGREEMENT

4.1. The contract was concluded for a period of ________________. 4.2.1. The contract may be terminated early by agreement of the parties. 4.2.2. The Lender has the right to demand early termination of the Agreement in cases where the Borrower: - uses the item not in accordance with the Agreement or the purpose of the item; - fails to fulfill obligations to maintain the thing in good condition or its contents; - significantly worsens the condition of the thing; - transferred the item to a third party without the consent of the Lender. 4.2.3. The borrower has the right to demand early termination of the Agreement: - if defects are discovered that make the normal use of the thing impossible or burdensome, the presence of which he did not know and could not know at the time of conclusion of the Agreement; - if the thing, due to circumstances for which he is not responsible, turns out to be in a condition unsuitable for use; - if, when concluding the agreement, the Lender did not warn him about the rights of third parties to the transferred item; - if the Lender fails to fulfill the obligation to transfer the item or its accessories and related documents within ____ days after signing this Agreement. 4.3.1. If the Agreement is unilaterally terminated by the Lender, the Borrower is obliged to freely transfer the Property to the Lender within ___ days. 4.3.2. If the Agreement is unilaterally terminated by the Borrower, the Lender is obliged to immediately accept and remove the Property within ____ days. 4.4. The Lender does not have a pre-emptive right to conclude an Agreement for the gratuitous use of the Property for a new term. 4.5. The gratuitous use agreement is terminated in the event of the death of the citizen-Borrower or the liquidation of a legal entity - the Borrower. 4.6. The agreement is drawn up and signed in 2 copies having equal legal force, one of which is kept by the Lender and the other by the Borrower.

5. ADDRESSES AND DETAILS OF THE PARTIES:

Lender: _________________________________________________ ___________________________________________________________________ (last name, first name, patronymic, passport details, place of residence)

Borrower: _____________________________________________ ___________________________________________________________________

Lender: Borrower:

______________________ _____________________

M.P.

Agreement for free use of residential premises

Under an agreement for the free use of residential premises, a separate premises (apartment, house, room) is transferred for use. It is better to conclude an agreement for the free use of an apartment or other residential premises in writing, indicating the exact address of residence, a list of things that are transferred together with the residential premises, and a description of the technical condition of the apartment.

The agreement for the gratuitous use of residential premises must stipulate which party will be responsible for damage caused to the residential premises itself, as well as actions aimed at causing harm to the property of others (the most common situation is flooding of the underlying residential premises).

An agreement for the gratuitous use of an apartment or other housing must necessarily indicate the right to move in and live in the apartment of other persons. Determine the period for which the contract is concluded. It seems that it would be correct to conclude an agreement for a short period, with its subsequent extension, rather than immediately determining the long-term use of housing.

A mandatory condition in the contract is the procedure and timing of its termination or termination. This will avoid a situation where the lender may suddenly demand eviction, and the tenants will have no options for eviction and no time to find another place to live. At the same time, the owner of the residential premises will be protected from the fact that the borrower abandons or leaves the apartment unattended.

An agreement for the gratuitous use of residential premises is not subject to state registration in Rosreestr, since this is not provided for by law.

The essence of free use of property

An agreement for the gratuitous use of property between individuals or organizations is an agreement documenting the process of transferring property for temporary use. The second name of the document: loan agreement.

The procedure should not be confused with donating a specific object. The difference between them lies in several factors:

We advise you to read:

• ✅ Agreement for free use of residential premises
• ✅ Sample agreement for the free use of non-residential premises in 2021
• ✅ Sample property trust management agreement
• ✅ Title documents for the land plot

• When concluding a use agreement, there is no transfer of ownership rights. And in case of gratuitous transfer, the property passes to the new owner. Therefore, the second name of such an agreement is a gift agreement.
• The loan does not require payment of VAT. In the case of a gift, VAT is paid by the previous owner of the property.
• The free use agreement does not imply profit. On the other hand, when making a gift, the recipient of the property acquires non-operating profit.
• Property tax payments. In the case of a loan, this obligation is imposed on the transferor, and in the case of a gift, on the recipient.

The main thing to remember is that with gratuitous use, the property is transferred for a time, with return. Donations are always final.

Agreement for free use of a car

A contract for the free use of a car is concluded between the owner and the person to whom the car is transferred for temporary free use. Such agreements are quite common in practice; in everyday life, as a rule, they are not drawn up in writing. The parties simply agree on everything verbally.

However, such a formal attitude can lead to unpleasant consequences in cases of damage to both the car itself and other vehicles, and in some cases, injury to citizens. No one is immune from this, since a car is a source of increased danger. Therefore, it would be correct to formalize the relationship for gratuitous use in writing.

What should you pay attention to when concluding an agreement for the free use of a car?

First, the parties must describe in detail the technical condition of the car. To do this, you can use the services of specialized organizations. The acceptance certificate describes the appearance of the car, its technical condition, the presence of additional equipment and the condition of the interior.

Secondly, the contract must indicate who has the right to drive the car, and whether transfer of the vehicle to third parties is allowed.

Thirdly, the contract must contain information about the operating conditions of the car. It is clear that vehicles are subject to wear and tear, which depends on its use. A car used as a taxi will be subject to much more abuse than a car used only for commuting and weekend shopping. Cars in sports competitions experience great risk in use and serious loads.