Symbolic purchase price of a real estate and simulated legal act

(Resolution of the Constitutional Court of the SR from 21 June 2016)

The defendant bought an apartment from her and the plaintiff's parents for the purchase price of 1,00 SKK. The plaintiff asked the court to set-off the value of the apartment to the defendant’s share on heritage.

The court of first instance dismissed the action. The court did not find the purchase contract to be a simulated legal action (which was supposed to mask a donation). The court held that the symbolic purchase price is justified by the defendant’s long-time care of their parents. The plaintiff appealed.

The Constitutional Court dismissed the action, too. The Constitutional Court confirmed conclusions of the court of first instance, that the purchase contract was not a simulated legal action due to the symbolic purchase price.

Purchase contract consists of two essential elements (the object of the purchase and the purchase price), which differ a purchase contract from a donation.

Essential element of donation is a transfer of ownership rights free of charge. Moreover, the aspect of long-term care of parents is in compliance with good morals.