Gift Deed Of Property

Transfer of Property Act, 1882, defines gifting as one of many ways of transferring property. If the property is immovable, it needs to be registered in India. Movable property is not subject to such conditions. Gift deeds in blood relation have different stamp duty. Learn the rules and laws applicable to property gift deeds before and after them.

Those who claim not to love gifts are lying! Love and affection can be expressed in anything we give. Most things are governed by law, including gifts. You transfer ownership of something you give as a gift from yourself to the recipient. As per law, immovable properties have to be registered and certain documents need to be completed for that purpose. In India, a gift deed is a legal document that describes the express details of the gift of property. In the following, we explain the rules regarding gift deeds of property in India. We have also summed up the requirements for gift deeds in India.  

Rules for property gift deed :

Transfer of Property Act, 1882, states that, according to the law enacted at the time, the following are the essentials of gift deeds in India:

• Consideration cannot be exchanged for a gift. 

• Whether the gift is movable or immovable is up to you.

• The person to whose benefit such a gift is made is known as the donee, and the original owner of the property is called the donor.

• Force should never be used to force a gift.

• The gift deed property definition allows only existing property to be gifted.

• Donees must accept their gifts.

• Movable properties need only be transferred, though registration may be made through gift deed format India. Registration is required for immovable properties.

• Parties to a contract, i.e. donors and recipients, must be competent to enter into contracts, i.e. they cannot be minors or unsound minds.

• India prohibits minors from making gift deeds.

• The guardian of a minor can accept gifts on the minor's behalf if the minor is unable to enter into a contract.

• Gifts cannot be made for future properties that are not in existence or owned by the donor at the time of the gift.

• You cannot revoke a gift, but you can condition it.

• It is possible to sell a gift deed property right away.

• A donor proposes a gift and the donee hasn't accepted it, and in the meantime, the donor dies. Gift deeds become void in such situations.

 

What is the legal status of gift deeds in India?

India allows gift deeds. Generally, in India, immovable property gifts without gift deeds are invalid. If the property is movable, it is up to the parties whether they wish to follow the registered gift deed rules since transfer of possession suffices. Please remember to comply with the applicable laws when drafting a gift deed.

 

How does a property get gifted?

As In accordance with the Transfer of Property Act, 1881, immovable properties can be gifted. In any case, parties want the registration to follow gift deed rules. Immovable property is a completely different story. It is mandatory to register a gift deed of property in India. Both the donor and donee must attest each page of the gift deed format India once it has been drafted on stamp paper. In most states, stamp duty on gift deeds to relatives is usually lower than otherwise. Also, two witnesses must sign. Once this document is prepared, it must be presented to the Registrar or Sub-Registrar of the location of the property. The process of transferring title via other documents can begin once the gift deed of property in India has been registered.

What is the process for making a gift deed of property?

Many people question the format and format of gift deeds in India. To better understand or draft a gift deed format India, it is better to contact some property lawyers in India. A gift deed document for registration should contain certain important points.  

• Information on the donor - The written document clearly identifies the person who owns the property being gifted to another. Such an identification is confirmed by name, father/ husband’s name, age and place of residence.

• Donee details - The document of the gift deed should clearly mention the details of the person in whose favor the deed is being processed. A donee is a recipient of a gift. Name, parents'/husband's name, age, and place of residence identify donees.

• Property details - The most important part of a gift deed in India is the description of the property. It is important to know the details of an immovable, real estate property: plot number, ward or sector, compass direction, surrounding properties. Unless specifically mentioned and accepted by the donee, the property must be free of any charges or encumbrances. Similar to cash gift deeds, cash gift deeds specify the amount and sometimes the currency notes.

• Ownership by the donor - According to the gift deed rules, the donor is the real and absolute owner of the property. Therefore, ancestral property cannot be gifted. Gift deeds can be used to bequeath a self-acquired property.

• Inadequate consideration - A gift deed cannot be executed without consideration in return. It is only out of love and affection that property can be transferred.

• A voluntary gift - The free will of the donor gifting the property and that of the donee receiving it should be clearly stated. Coercion, influence, or other means should not be used to transfer property.

• There is a condition - A gift deed cannot be revocable itself, but it can be conditional. The donee may need to fulfill a condition to get the gift deed processed. Gift deed format India does not require a conditional gift.

• The rights of the donor - In India, a gift deed must specify the extent to which rights are transferred.

• Delivery intention - In India, the donor should clearly express his intention to transfer the property rights to the donee in the gift deed. As a result of a gift, property is immediately transferred. Documents should clearly state this.  

• Donee accepts the gift - In the gift deed, the clause specifying donee's acceptance should be included. The donee should have accepted the gift 

• The witness - Gift deeds of property cannot be valid without witnesses, even though donors and donees are the main parties. As per the gift deed format India, two witnesses' signatures are required.

 

It is necessary to print such a gift deed on the appropriate stamp duty paper, and to have two witnesses sign it. In the area where the property is located, it needs to be presented to the Registrar or Sub-Registrar. Those authorities can be contacted at the donor's residence if movable property is involved.

 

Gift deeds: Can they be sold?

A property transferred as a gift in India becomes the real property of the donee. Therefore, such property may be sold and the related proprietary rights may be transferred just like those of a self-acquired property. Gifts that are conditional, however, must be treated with due regard when the donee is required to fulfill some kind of condition.

 

Do gift deeds have any disadvantages?

Gifts need to comply with certain rules as they are a mode of transferring property. Since future property cannot be transferred, the property must already be owned by the donor. In India, gift deeds are also not revocable. Donations of property must take place during the donor's lifetime through acceptance by the donee. Depending on the condition of the gift deed, it could be a prohibited fruit.