Cantonal Court Upholds Refusal of Real Estate Gift to Minor Due to Conflict of Interest and Encumbrances

The Cantonal Court upheld the Land Registry Office's refusal to register the gift of two real estate properties to a two-year-old child because the child's legal representative (the child's mother) was the sister of the donor, creating an abstract conflict of interest, further complicated by the properties being encumbered with a mortgage and a usufruct right granted to the donor, which together exceeded the properties' market value and severely restricted the minor's ability to dispose of the assets. The court reasoned that the existing close personal relationship between the legal representative and the donor, coupled with the fact that the usufructuary was young and the donor had disclaimed warranty while retaining control via the usufruct, suggested the representative's actions might be influenced by the donor, necessitating the appointment of an independent guardian (Beistand) to protect the child's actual, non-aligned interests.