Everyone loves gifts, if someone says they do not, they lie!! It can be anything we give to others out of love and affection. Laws apply to almost everything and gifts are not spared either. When you gift something to another, the ownership transfers from you to the one you are showing your affection to through that property. If it is something falling under the umbrella of immovable property as per law, it has to be registered and certain documentation follows for that purpose. The gift deed of property in India is just another legal document containing the express details of such transfer of property through gift. Hereunder, the rules regarding gift deed of property in India have been explained. The requisites of gift deed format in India have also been summed up for convenience.
Property Gift Deed Rules
Given below are the essentials of transfer of property by gift deed in India as per the Transfer of Property Act, 1882:
- A gift is made out of pure love and affection and can not be processed in return for a consideration.
- The property to be gifted can be movable or immovable.
- The original owner of the property being gifted is called a donor and the person in whose favour such a gift is being made is known as the donee.
- A gift should be voluntary, without any force.
- Only an existing property can be gifted as per the meaning of gift deed property.
- Acceptance of the gift by or on behalf of the donee is a must.
- In case of a movable property, transfer of property is enough, however, registration through gift deed format India may be done. But in case of an immovable property, registration is mandatory.
- Parties to gift, i.e. the donor and donee should be competent to become parties in a contract, i.e. they should not be minor, persons of unsound mind, etc.
- A minor can not be a donor in gift deed of property in India.
- A minor may be a donee and due to incapacity to enter a contract, in such case the guardian of such minor may accept the gift on minor’s behalf.
- A future property, which is not in existence or in the donor’s ownership at the said time can not be gifted.
- A gift can not be revoked, however, it can be conditional.
- A gift deed property can be sold immediately after it has been processed.
- In case a gift is proposed by a donor which is yet to be accepted by the donee and in the meantime, the donor dies. In such a case, the gift deed becomes void, i.e. gift is ineffective.
For gift property in Kolkata, consult with the property lawyers in Kolkata.
Is gift deed legal in India?
Yes, a gift deed is legal in India. In fact, gift of an immovable property without registration of gift deed is invalid in India. However, in case of a movable property, it is the will of parties as to whether they want to get the registered gift deed rules followed since transfer of possession is sufficient in such cases. It should be kept in mind that the gift deed format India rules must be duly followed as per the applicable laws.
What is the process of gifting a property?
As per the Transfer of Property Act, 1881, an immovable property can be gifted through delivery of possession. However, it is the wish of parties to get the registration done in compliance with gift deed rules. The case is totally opposite when it comes to immovable property. For in that case, registration of gift deed of property in India is mandatory. Once the gift deed format India is drafted on a stamp paper of appropriate amount, it has to be attested by both the donor and donee on each page. It must be noted that stamp duty on gift deed in blood relation is usually lesser as compared to the case otherwise, in most states. The same has to be signed by two witnesses as well. This document then has to be presented before the Registrar or Sub-Registrar of the place where such property is located. Once the gift deed of property in India is registered, the process completes and further formalities regarding transfer of title through other documents can be initiated.
How to Make Gift Deed of Property?
People have so many doubts regarding gift deed of property in India and the format followed in the legal document. It is better to contact some property lawyers in India in your location to better understand or draft a gift deed format India. However, one may refer to the important pointers that should be there in the gift deed document to be put for registration.
- Details of the donor - The written document clearly identifies the person who is the real owner of the property being gifted to another, known as the donor. Such an identification is confirmed by name, father/ husband’s name, age and place of residence.
- Details of the donee - The document of the gift deed should clearly mention the details of the person in whose favour the deed is being processed. Such a person is known as the donee as per gift deed. Identification of donee is expressed through name, parent’s/ husband’s name, age and residence.
- Details of property - Most important part in a gift deed in India is the specification of the property to be gifted. In case of an immovable, real estate property, the details like plot number, ward or sectors, compass direction, surrounding properties, etc. must be clear. The property must be free of any charge or encumbrances, if not, then that should be specifically mentioned and accepted by the donee. Similarly, a gift deed for cash will specify the amount and sometimes details of the currency notes as well.
- Ownership of the donor - The gift deed rules require the donor to be the real and absolute owner of the property. That is why gifts of ancestral property are not allowed. A self-acquired property can be bequeathed as per property gift deed rules.
- Lack of consideration - A prerequisite of a gift deed is lack of consideration in return of which gift may be executed. Transfer of property through property gift deed rules needs to be done out of love and affection only.
- Voluntary transfer - Free will of the donor gifting the property and that of donee receiving the said gift should be clearly mentioned. Transfer of property through gift deeds should not be done under influence, coercion, etc.
- Condition - A gift deed can not be revocable per se, but it can be conditional. It may have a condition which has to be fulfilled by the donee in order to get the gift deed processed in his/ her favour. However, it is not at all mandatory as per gift deed format India to have a conditional gift.
- Details of donor’s rights - Just like a sale deed of property, a gift deed of property in India also needs to specify the extent of rights transferred to the other party.
- Intention to deliver - The donor’s intention to transfer the rights of such property to the donee should be expressed clearly in the gift deed format in India. It should be noted that a gift is an immediate transfer of property. This should also be clearly put in the document.
- Acceptance by donee - The clause whereby donee accepts the gift should also be there in the gift deed. It should reflect acceptance of gift by the donee during the lifetime of the donor as per the gift deed rules India. Signature of the donee is a must in this document.
- Witnesses - Although donor and donee are the main parties to gift deed of property in India, it may be void without witnesses. Having signatures of two witnesses is a must as per gift deed format India.
Such a gift deed format has to be printed over the suitable stamp duty paper, duly signed by donor, donee and two witnesses. It has to be presented before the Registrar or Sub-Registrar of the area wherever the said property is located. In case of movable property, the said authorities at the place of residence of the donor can be approached.
Can a property be sold after a gift deed?
Yes, as per the property gift deed rules in India, the donee becomes the real owner of a property transferred as a gift. Hence, one may sell the same and transfer the related proprietary rights in such property just like that of a self-acquired property. However, in case the gift was conditional and the donee is supposed to comply with some sort of conditions, they must be given due regard in this sense.
What are disadvantages of gift deeds?
Gift is a mode of transfer of property as per law and needs to comply with certain rules. The property must be existingly in the ownership of the donor since transfer of future property is not allowed. As per gift deed rules India, it is also not a revocable document. Through this mode, transfer of property has to take place in the lifetime of the donor through the acceptance of donee. If it is a conditional gift deed, it might be a prohibited fruit which you may possess but can not eat.