A Gift Deed is a legal document that is used when one party freely transfers ownership of a movable or immovable property to another party. When it comes to cases involving the inheritance of property, having a Gift Deed can help reduce the likelihood of litigation. Charges that have been determined by the state government must be paid in order to register a gift deed. It is permissible to bestow either a moveable or an immovable property as the gift. When it comes to questions of succession, a gift deed can be an extremely useful document because, unlike a legitimate “Will,” it was not created by the property owner.
The Gift Deed, in contrast to a Will, can be executed instantly, and one does not need the assistance of a court in order to have it enforced. Therefore, a Gift Deed helps reduce time as compared to the process of settling an estate through a will. The individual who is gifting the property is referred to as the “Donor” under a Gift Deed, while the person who is receiving the property is referred to as the “Donee.”
It is possible to gift both immovable and moveable properties with the use of a Gift Deed. In this context, “immovable property” refers to everything that is fixed to the ground or the land. However, it does not include any standing timber, grass, or crops that are actively growing. It is important to remember that properties that do not meet the requirements to be classified as immovable properties are referred to as moveable properties.
In accordance with the Transfer of Property Act, a Gift Deed
The Gift Deed is protected under the Transfer of Property Act of 1882. The Act stipulates that there must be no monetary motive for the gift in order for it to be considered a gift. In addition to this, the Donee is obligated to acknowledge and accept the Gift throughout the Donor’s lifetime.
Detailed Instructions for Registering Gift Deeds
The following are the steps that need to be taken in order to register the gift deed:
An accredited expert will conduct an assessment of the property that is associated with the donation deed.
In the presence of two witnesses, a gift deed will be signed by both the donor and the recipient of the gift.
To submit the signed paperwork, you need go to the sub-registrar that is geographically closest to you.
Employing an attorney to calculate the registration fees, which may include stamp duty, is highly recommended. You are required to pay the fees that have been imposed.
Put your name to the act.
In accordance with the Transfer of Property Act, the Gift Deed will not take effect until it has been registered with the office of the Registrar or the Sub-registrar. Immediately upon the registration of the Gift Deed, the property in question will be transferred to the recipient.
The legality of the Gift Deed is specifically addressed under the Act for the Transfer of Property. The Act specifies the conditions that must be met before a gift deed can be considered valid:
When the gift is given, the property that is described in the gift deed must already exist.
The donor of the property in question needs to be the rightful owner and have the title in their name.
The Giving must be done voluntarily and in an unpressured manner.
The gift may not be in exchange for anything of value, either monetarily or otherwise.
The property that has been gifted must be accepted by the Donee.
Constituents of a Gift Agreement or Deed
The Gift Deed is comprised of a number of clauses and necessary particulars, all of which are required to be specified in the aforementioned document. The Gift Deed contains a few clauses that include the following:
Transfer of the Gifted Property Done of the Donor’s Free Will The Gift Deed needs to make it abundantly clear that the transfer of the Gifted Property is being done of the Donor’s free will, and that the Donor is not under any pressure or threat to gift the property.
Information Regarding the Donor and the Recipient of the Gift The Gift Deed is required to include the name, address, and relationship of both the donor and the recipient of the gift.
Consideration It is imperative that the Donor make it clear in the Gift Deed that they are giving the property to the Donee out of love and that they will not accept any form of monetary consideration in exchange for the gift.
The Gift Deed must include the measurements, plan, and area specifics of the property in issue so that there is no room for ambiguity later on. This is done to ensure that there are no surprises down the road.
The Gift Deed is required to make a statement of the Donee’s property rights in order to be valid. The gift deed makes it abundantly obvious that the Donee is free to sell, lease, or rent the property in accordance with his or her whims. Another option for the Donee is to mortgage the property.
Acceptance of the Gifted Property by the Donee The Gift Deed is required to include a clause stating that the gifted property has been accepted by the Donee.
Witnesses Because the signing of a Gift Deed requires the presence of two witnesses, the document itself needs to include the names and addresses of those witnesses. A genuine Gift deed needs to have two witnesses sign it and attest to it before it can be considered legal.
It is recommended that a revocation provision not be included in the Gift Deed because the donation is entirely voluntary. Once the deed has been executed, ownership of the property will be transferred to the Donee.
The act of giving a gift is divided into three distinct stages in Indian culture. To make things simpler for you, we are going to examine each of these aspects separately.
Drafting a gift deed
The procedure of making a gift begins with the drafting of a gift deed as the first stage. Due to the fact that he or she will be responsible for preparing the gift deed, the presence of a lawyer is absolutely necessary in this scenario. In most cases, the draught will include specific information regarding the donee as well as the asset that is planned to be transferred. It is important to keep in mind that conducting financial transactions through the use of a gift deed is not recommended.
Acknowledgment and Acceptance of the Property
The applicable legislation mandates that the donee must, during the donor’s lifetime, accept the asset or property that is being given to them by the donor. In the event that the donee declines to accept the property from the giver, the gift deed will lose its legal standing and be rendered ineffective.
Registration According to section 123 of the statute governing the transfer of property, a gift deed that has not been registered cannot, under any circumstances, be considered a legally binding document. To attest to the legitimacy of the gifting procedure, you are required to have two witnesses present at all times.
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