What you must know when making a GIFT DEED
A Gift Deed is a legal instrument executed to document a valid transfer of immovable property in form of a gift as per the provisions of the law. A Gift Deed is a proof of the transfer of all the rights associated with the property from the Donor to the Donee thereby declaring the Donee as an absolute owner.
The Transfer of Property Act, 1882 defines Gift as “the transfer of certain existing movable or immovable property made voluntarily and without consideration…” The transfer occurs between two parties; the person who transfers the property is called the donor and the person who receives is called the donor without any consideration or price. The transfer must be out of love and affection towards the donee.
What are the benefits of a Gift Deed?
- A Gift Deed records the transfer of property to the donee. The complete details of the property and the details of the parties to the transaction make this document a legal proof to the title of the property.
- A Gift Deed is of evidentiary value before the Courts in event of any future disputes that may arise.
- A Gift Deed serves as a legal protection to the parties in event of any disputes that may arise in future.
- The written agreement makes the entire transaction smoother for the parties and without a glitch.
What are the essential elements of a Gift?
- A transfer which is defined as conveying of property;
- Voluntary transfer by the major and sound donor without any coercion or fraud.
- The property which is the subject matter of the gift must be an existing movable or immovable property and not a future property.
- The gift must be without any monetary consideration and only out of natural love and affection.
- Acceptance of the donee is important.
What are essentials of a gift deed?
- A Gift Deed is a legal document, thus must be clear and unambiguous stating all the term in proper legal language.
- The specifies to be mentioned in a Gift Deed are:
- The name and details of the Donor and the Donee.
- The details of the title and ownership of the subject matter.
- Other details of the property.
- Relation between parties, if any
- Date and place of execution.
- A Gift Deed is required to be signed by
- the Donor who consents to the transfer of subject matter through Gift-deed,
- the Donee who accepts the gift wholly, and
- two adult witnesses
How to get a Gift Deed registered?
As per the applicable laws, a Gift Deed must mandatorily be registered to be effective and have legal standing in future. Thus, the Gift Deed must be signed by or on behalf of the donor, attested by minimum two witnesses and the consent of the donee must be provided though a signature.
The stamp duty to be paid depends on the state in which the subject matter property situates and the market value of the property which has to be paid through a non-judicial stamp paper. Registration charges also have to be paid.
The donor must also achieve all the required approvals, permissions, and clearances subject to the transfer of the property before the execution of the Gift Deed
What are the features of a Gift Deed?
- The gift shall not be effective by the mere delivery of the subject matter.
- It is only after the Gift deed is duly registered, the title shall stand legally transferred to the donee.
- The appropriate stamp duty to be paid in during the registration is as per the state and is paid through a non-judicial stamp paper.
- The market value of the property also affects the stamp duty to be paid.
We will assist you in the following steps:
- Contact us for any queries that you have regarding Gift Deed.
- Our legal experts shall assist you with any queries and help you forwards.
- We will provide you with the details and the checklist of documents required for the effective drafting of the Gift Deed.
- We will draft the Gift Deed as per your instructions and the legal provisions.
- The process shall take 3-4 working days.
- We will assist you with the valuation of the property and determine the stamp duty to be paid..
- This shall ensure you have an ideal experience of preparing a legal document.