Gifting Money for a Property Purchase: Why Notarisation Matters
Parents giving their child money to buy an apartment may wonder why a notary is needed at all. In practice, a notarially certified deed of monetary gift protects both parties and resolves many questions that arise in the subsequent property transaction. In this article I explain why notarisation is worth it — and what you need to prepare.
Why Gifting Money for Housing Is More Than Handing Over Cash
When parents or other close relatives transfer a substantial sum toward the purchase of an apartment, this is not a casual gift — it is a significant property transaction. A deed of monetary gift certified by a notary records the fact of the gratuitous transfer, the identities of the donor and recipient, and the freely expressed intention of both parties. Without this document, the funds can be characterised very differently in law — as a loan, joint savings, or even third-party money. That creates risk for both the recipient and the donor.
Key points:
- Notarial certification confirms that both parties entered the transaction voluntarily and with full understanding.
- The document protects the recipient in the event of a matrimonial property dispute: gifted money is personal property, not jointly owned marital property.
- Banks and mortgage lenders frequently require proof of the source of a down payment; a notarially certified deed of gift is compelling evidence.
- The notary verifies the legal capacity of both parties and explains the consequences of the transaction, reducing the risk of future disputes.
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When a Notarially Certified Deed of Monetary Gift Is Especially Important
In my practice I regularly see families save on paperwork — and then face serious problems later.
| Situation | Why documentation matters | What to watch for |
|---|---|---|
| Purchasing an apartment while married | Proving the funds are a personal gift, not joint marital assets | The deed should be executed before or simultaneously with the property purchase |
| Mortgage with a parental down payment | The lender requires confirmation of the payment's origin | Confirm with your bank whether it accepts a notarially certified deed of gift |
| Gift from a distant relative or unrelated third party | Higher risk of the transaction being contested | Verification of the donor's legal capacity is especially important |
| Large sum with tax reporting implications | Documentary evidence of the source of funds | Consult a tax adviser for your specific circumstances |
Even where the law does not expressly require notarial certification of a deed of monetary gift, it is a prudent precautionary measure — particularly when the amount is comparable to the cost of a property.
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Documents to Bring
I recommend preparing the following in advance:
- Passports of both the donor and the recipient (originals).
- If the recipient is married — a marriage certificate (to correctly describe the legal status of the funds).
- Where necessary — documents confirming the family relationship (birth certificate, etc.).
- Details of the intended purpose of the funds (if the parties wish to state in the deed that the money is designated for the purchase of residential property).
- If the donor is acting through a representative — a notarially certified power of attorney.
The exact list may vary depending on the specific circumstances — please confirm the requirements when booking your appointment.
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How the Notarisation Procedure Works
The process generally does not take long. Both parties attend together; the notary verifies identities, ascertains the freely expressed intention of each party, explains the legal consequences, and drafts the deed. After signing, the deed is certified and entered into the notarial register. Each party receives their own copy.
The state duty (notarial fee) for certifying a deed of monetary gift is calculated in accordance with the rates in force at the time. Please confirm the exact fees with the notary on the day of your appointment, as rates are subject to periodic revision.
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Frequently Asked Questions
Can a simple receipt substitute for a deed of gift?
A receipt records the fact that money changed hands, but does not characterise the transaction as a gift. In a dispute, a court may interpret it differently — for example, as a loan. A notarially certified deed of gift unambiguously defines the legal nature of the transfer.
Does the donor's spouse need to be present?
If the gifted funds constitute jointly owned marital property, the consent of the other spouse will be required. The notary will clarify this point during the consultation.
Is a monetary gift subject to tax?
The tax treatment depends on the specific circumstances, the degree of family relationship, and the legislation in force at the time of the transaction. I recommend consulting a qualified tax adviser.
Can the deed specify that the money is intended for a property purchase?
Yes, the parties may include such a provision in the deed. This further evidences the designated purpose of the funds and can be particularly useful in a mortgage transaction.
What happens if the donor changes their mind after signing?
A notarially certified deed of gift is a legally binding document. Withdrawal or revocation is only possible in cases expressly provided for by law. This is precisely why the notary explains all consequences to the parties in advance.
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*This article is provided for general information purposes only and does not replace individual notarial advice. Every situation has its own particular features, which must be considered on a case-by-case basis.*
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Book a Consultation
If you are planning to execute a deed of monetary gift for a property purchase, I would be glad to receive you at my notarial office in the Yunusabad district of Tashkent. During the consultation we will review your situation, prepare the necessary documents, and complete the transaction in full compliance with applicable law. Please contact us in the way most convenient for you — the details are available on the website.
Practising private notary of the Yunusabad district of Tashkent. Certifies transactions, powers of attorney, inheritance and family documents under the law of the Republic of Uzbekistan.
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