A Gift Deed is a legal document used to transfer certain existing movable or immovable property made voluntarily and without consideration by one person, called the donor, to another, called the donee, and accepted by or on behalf of the donee.
It is essential that such acceptance should be made during the lifetime of the donor and while he is still capable of giving. However, if the donee dies before accepting the gift, it is void.
HOW CAN A DONOR TRANSFER A PROPERTY BY WAY OF A GIFT?
According to Section 123 of the Transfer of Property Act, 1882, for the purpose of making a gift of immovable property, the transfer must be effected by a registered instrument signed by or on behalf of the donor, and attested by at least two witnesses.
For the purpose of making a gift of movable property, the transfer may be effected either by a registered instrument signed as aforesaid or by delivery. Such delivery may be made in the same way as goods sold may be delivered.
CAN A GIFT BE MADE WHICH IS BURDENED BY OBLIGATIONS?
As per Section 127 of the Transfer of Property Act, 1882, where a gift is in the form of a single transfer to the same person of several things of which one is, and the others are not, burdened by an obligation, the donee can take nothing by the gift unless he accepts it fully.
On the other hand, where a gift is in the form of two or more separate and independent transfers to the same person of several things, the donee is at liberty to accept one of them and refuse the others, although the former may be beneficial and the latter onerous.
However, a donee not competent to contract and accepting property burdened by any obligation is not bound by his acceptance. But if, after becoming competent to contract and being aware of the obligation, he retains the property given, he becomes so bound.
STEP-BY-STEP GUIDE TO REGISTER A GIFT DEED
Registering a gift deed is a legal process that ensures the transfer of property ownership as a gift. It provides legal protection to both the donor and the donee. Here is a step-by-step guide on how to register a gift deed in India:-
Drafting the Gift Deed
Consult a Lawyer: Seek advice from a legal professional to ensure the gift deed complies with Indian laws and regulations.
Essential details: The deed should clearly state:
1. The names and addresses of the donor and the donee.
2. A detailed description of the property being gifted (property type, location, and boundaries).
3. The date of the gift.
4. A declaration by the donor that the gift is made voluntarily and without any undue influence.
5. A declaration by the donee accepting the gift.
Obtain necessary documents
Property documents: Gather original documents related to the property, such as the sale deed, property tax receipts, and building plan approval.
Identity proof: Provide identity proof for both the donor and donee, such as Aadhaar cards, driving licenses, or passports.
Other documents: Depending on the property type and location, you might need additional documents like No Objection Certificates (NOCs) from local authorities.
Stamp duty and Registration fees
Calculate stamp duty: The stamp duty payable varies depending on the State and the property's value. Consult the relevant State's stamp duty calculator or Sub-Registrar's office for the same.
Pay fees: Pay the required stamp duty and registration fees at the designated government treasury.
Present documents to Sub-Registrar
Visit the Sub-Registrar's office: Visit the Sub-Registrar's office in the jurisdiction where the property is located.
Submit documents: Submit the original gift deed executed by the donor and the donee, and attested by two witnesses, along with the required supporting documents.
Verification: The Sub-Registrar will verify the documents and ensure that all the necessary formalities are fulfilled.
Registration and Stamping
Registration: The Sub-Registrar will register the gift deed in the property registration records.
Stamping: The deed will also be stamped to indicate the payment of stamp duty.
Obtain registered copy
Receive copy: Once the registration is complete, you will receive a registered copy of the gift deed. This document serves as a legal proof of property ownership transfer.
Mutation updates
Update records: Inform the local municipal corporation or revenue department about the change in property ownership. They shall update their records accordingly.
CAN A GIFT BE SUSPENDED OR REVOKED?
According to Section 126 of the Transfer of Property Act, 1882, the donor and the donee may agree that on the happening of any specified event which does not depend on the will of the donor a gift shall be suspended or revoked; but a gift which the parties agree shall be revocable wholly or in part, at the mere will of the donor, is void wholly or in part, as the case may be. A gift may also be revoked in any of the cases (save want or failure of consideration) in which, if it were a contract, it might be rescinded. Apart from these circumstances, a gift cannot be revoked.
However, in general parlance, once a gift deed is registered, revocation is generally not possible unless a specific "revocation clause" is included in the deed itself. Therefore, it is highly recommended to have such a clause to prevent any potential complications in the future.
CONCLUSION
Registering a gift deed is a crucial step in ensuring the legal transfer of property. By availing the services of our e-platform, You Are Ensured, you can simplify the process and ensure that your gift deed is drafted accurately and registered efficiently. Our platform provides expert legal advice, online document submission, and hassle-free registration, saving you time and effort. Do not let the complexities of legal procedures deter you from gifting your loved ones. Choose You Are Ensured and experience a seamless and secure drafting and registration process.
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