Transfer of property can be a complicated process, but a Gift Deed makes it easier when executed in the proper way. A Gift Deed is a legal document valid through which an individual, i.e., the donor, may voluntarily transfer immovable or movable property to an individual, i.e., the donee, without receiving any money consideration. But in order to make the transfer effective, the donee should accept the gift while the donor is still alive and sane to make the transfer. If the donee predeceases him without accepting the gift, the deed becomes ineffective with invalid..
How Can a Donor Transfer Property Through a Gift Deed?
According to Section 123 of the Transfer of Property Act, 1882, a donor can transfer immovable property by executing a registered instrument on behalf of or by the donor in the presence of two witnesses. In the case of movable property, transfer is either through a registered document or by actual delivery of the gift to the donee.
Is a Gift Possibly Given with Conditions or Obligations?
As per Section 127 of the Transfer of Property Act, 1882, if the gift is of burdened and unburdened properties, the donee has to accept the whole gift. But if the gift is of several independent transfers, the donee can accept one and refuse another. If a donee is legally incapable of contracting, they are not bound by the obligations that go with the gift. But if they hold the gift upon becoming competent, they will be obligated to honor those duties.Â
Step-by-step guide to registering a Gift Deed
In making the conveyance valid, there should be the registration of the gift deed. Take note of these steps to easily register:
1. Preparation of Gift Deed
Allow an attorney specializing in this legal action to draft the deed under the pertinent legislation. The deed must state plainly:
Full name and addresses of donor and donee.
A definite description of the property to be given as a gift.
The transfer date of the gift.
A statement that the gift is offered voluntarily and not under pressure.
A statement of acceptance by the beneficiary.
2. Obtain Required Documents
For processing of registration, the following documents need to be obtained:
Property Documents: Original title deed, property tax receipts, and any approvals on the property.
Identity Proof: Aadhaar card, passport, or driving license of the recipient and the giver.
Other Documents: In case the property is of specific types, No Objection Certificates (NOCs) from local authorities may be needed.
3. Pay Stamp Duty and Registration Charges
Stamp duty fees vary from state to state depending on the value of the property. To know the right amount:
Obtain information from the local Sub-Registrar office or an online stamp duty calculator.
Pay stamp duty and registration charges at the treasury office as prescribed.
4. Register the Gift Deed
Go to the Sub-Registrar’s office within the jurisdiction of the property.
Show the original signed deed, supporting documents, and proofs of identity.
Have two witnesses sign on the document.
The Sub-Registrar will check the details before processing the registration.
5. Complete Registration and Stamping
After verification, the gift deed is registered and formally recorded in the property registers.
The deed will also be stamped to indicate the payment of stamp duty.
6. Receive Registered Copy
After registration, get a copy of the registered gift deed, which provides a legally evidentiary assurance of the conveyance.
7. Update Municipal and Revenue Registers
Inform the local municipal office or revenue department about the change of ownership.
Make the property tax records current to the new ownership.
Can a Gift Deed Be Canceled or Revoked?
As per Section 126 of the Transfer of Property Act, 1882, the deed of gift may be revoked upon some conditions. The donor and the donee can agree amongst themselves to the extent that the gift may be revoked by them in case the pre-specified event outside the control of their own occurs. But where there is a condition in the gift to revoke through the unilateral decision of the donor, it is invalid.
As a general rule, once a gift deed is registered, it is hard to revoke, except where there is an express revocation clause in the deed. It is recommended that such a clause be included to avoid future legal conflicts.
Conclusion
Gift Deed Registration is necessary for the legal conveyance of rights in property to a close relation. Although it is a cumbersome procedure, with the right counsel, it would become easier. You Are Ensured provides easy online access for the preparation and registration of gift deeds without difficulties. With online documentation, legal advice from professional lawyers, and an easy, hassle-free approach, we render gifting in property easy as well as safe.
Don’t let legal complexities slow you down—put your trust in You Are Ensured for a convenient and reliable gifting experience!
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