Property Ownership Transfer via Gift Deed

Introduction

• A gift deed is a legal document that transfers ownership of property or assets from one person to another without any exchange of money. It is typically used to gift property to a family member or loved one.
• Section 123 of the Transfer of Property Act in India states that if a person who has leased out a property transfers his or her interest in the property to someone else, the transferee must respect the rights of the lessee under the lease agreement.

What documents are required for Gift Deed Registration?

1. The specific documents required for gift deed registration may vary depending on the state and jurisdiction in India, but typically the following documents are required:
2. The original gift deed document.
3. Proof of ownership of the property being gifted.
4. Identity proof of the donor and the Recipient.
5. Address proof of the donor and the Recipient.
6. Two passport-size photographs of the donor and the Recipient.
7. The latest property tax receipts.
8. NOC from the society or building in which the property is located (if applicable).
9. Any other relevant documents as required by the local authorities.

Section 17 of the Registration Act in India mandates that gift deeds for immovable property be registered with the relevant Sub-Registrar to make them legally enforceable.

People Also Read: Stamp Duty Rates for Gift Deed Across Different States in India

Can a Gift Deed of property be sold?

Yes, property received through a gift deed can be sold in India. However, it must first be transferred to the Recipient’s name through the appropriate legal procedures, and all necessary taxes must be paid before the sale can be completed.

Steps to draft Gift Deed of Immovable Property

1. Identify the donor, the Recipient, and the property being gifted.
2. Draft the gift deed document with the help of a lawyer or a registered property consultant.
3. Include details such as the description of the property, the consideration for the gift, and the rights and responsibilities of the donor and the Recipient.
4. Get the gift deed document printed on a non-judicial stamp paper of the appropriate value.
5. Sign the document along with two witnesses and get it registered at the local sub-registrar’s office.
6.   Pay the required stamp duty and registration fees.
7. Obtain the receipt and copies of the registered gift deed for future reference.
8. After the registration, the property title will be transferred to the Recipient’s name, and the Recipient will become the new owner of the property.

How to draft a Gift Deed of money?

THIS GIFT DEED is made on [date] by [donor’s name], [address], hereinafter referred to as the “Donor,” in favour of [Recipient’s name], [address], hereinafter referred to as the “Recipient.”

WHEREAS the Donor desires to make a gift of [amount in words and figures] (INR [amount in figures]) to the Recipient, as a token of love and affection.

NOW, THIS DEED WITNESSETH that the Donor hereby gifts and transfers the sum of [amount in words and figures] (INR [amount in figures]) to the Recipient, free from all liens, charges, encumbrances, or claims of any kind.

The Donor confirms that the said sum of money is the sole property of the Donor, and the Donor has absolute right, title, and interest in the said sum of money.

The Recipient acknowledges the receipt of the said sum of money and confirms that the said sum of money has been received as a gift from the Donor.

IN WITNESS WHEREOF, the parties hereto have executed this gift deed on the date and year first above written.

Signed and delivered by the Donor in the presence of:

(Donor’s Name) (Witness’s Name)

(Donor’s Signature) (Witness’s Signature)

Signed and delivered by the Recipient in the presence of:

(Recipient’s Name) (Witness’s Name)

(Recipient’s Signature) (Witness’s Signature)

What is required for Gift Deed for Property Transfer in  India?

1. Identify the donor, the Recipient, and the property being gifted.
2. Draft the gift deed document with the help of a lawyer or a registered property consultant.
3. Include details such as the description of the property, the consideration for the gift, and the rights and responsibilities of the donor and the Recipient.
4. Get the gift deed document printed on a non-judicial stamp paper of the appropriate value.
5. Sign the document along with two witnesses and get it registered at the local sub-registrar’s office.
6. Pay the required stamp duty and registration fees.
7. Obtain the receipt and copies of the registered gift deed for future reference.
8. After the registration, the property title will be transferred to the Recipient’s name, and the Recipient will become the new owner of the property.

What is Gift Deed in terms of Real Estate?

 A gift deed for real estate is a legal document that transfers ownership of a property from one person to another as a gift without any exchange of money. It is a common method of gifting property to family members or loved ones in India.

What is a Gift Deed of Ancestral Property?

A gift deed of the ancestral property refers to the transfer of ownership of inherited property from one family member to another by means of a gift deed. The donor gives up his or her rights over the property, and the Recipient becomes the sole owner of the property. 

What is a Gift Deed of Property Sale?

A gift deed of property sale is a transfer of ownership of a property from one person to another without any exchange of money. The transfer is a gift, and the Recipient becomes the new owner of the property.

People Also Read: Can Gift Deed be Challenged?

Conclusion

• A gift deed is a legal document that transfers ownership of property or assets from one person to another without any exchange of money.
• To be valid, the deed must be registered with the sub-registrar’s office. Once registered, property ownership is legally transferred to the Recipient.

Frequently Asked Questions on Gift Deed Registration

Q 1. What is a gift deed?

Ans. A gift deed is a legal document that transfers the ownership of property from one person to another as a gift without any monetary exchange.

Q 2. Who can execute a gift deed?

Ans. Any person who is competent to contract, i.e., above the age of 18 years, and is of sound mind can execute a gift deed.

Q 3. What type of properties can be transferred through a gift deed?

Ans. Any type of property, such as land, house, flat, or any other immovable property, can be transferred through a gift deed.

Q 4. Is stamp duty applicable on a gift deed?

Ans. Yes, stamp duty is applicable on a gift deed, and the rate varies from state to state.

Q 5. Is registration of a gift deed mandatory?

Ans. Yes, registration of a gift deed is mandatory, as per the provisions of the Registration Act 1908.

Q 6. Can a gift deed be revoked?

Ans. Yes, a gift deed can be revoked if the donor is still alive, but the revocation process is complex and requires legal assistance.

Q 7. Can a gift deed be challenged in court?

Ans. Yes, a gift deed can be challenged in court if it is executed under coercion, undue influence, fraud, or misrepresentation.

Q 8. Can a gift deed be used for tax planning?

Ans. Yes, a gift deed can be used for tax planning, as it can help reduce the tax liability of the donor and the Recipient.