Gift Deed Registration

Gift Deed - Overview

A Gift Deed is a legal agreement executed from one individual to another describing a transfer of gift as per the provisions of the law. As prescribed in Section 122 of the Transfer of Property Act, 1822, a Gift Deed format is a legally binding written format by which the donor can transfer any existing immovable or movable assets to the donee voluntarily.

A Gift Deed is a legal document that describes a transfer of gift under the provisions of the law from one individual to another. Gift Deed is a legally adhering written document by which the donor can give or transfer existing movable assets or immovable property to the beneficiary or donee that too voluntarily, as prescribed in Section 122 of the Transfer of Property Act, 1822.

Instead of a sale circumstance in a sale deed, a gift deed duty takes into account that any individual can transfer the ownership without transferring any amount of money. Registering a gift deed with the concerned sub-registrar is necessary under section 17 of the Registration Act, 1908, and according to section 123 of the Transfer of Property Act. If it is not done, the transfer of that particular gift will be invalid.
A Gift Deed is rightful only ‘without any consideration’ in return if offered out of love and affection, by one of the family members or by a friend to another individual or friend. It is obligatory and mandatory to have a registered property gift deed rules if you want to gift or transfer movable/immovable property as per Section 17 of the Registration Act, 1908.

Type of properties that can be gifted

Gift Deed

The properties can be gifted are mentioned below:

• A movable or immovable assets
• A transferable property
• A tangible property
• An existing property

Donor and Donee

Any individual who is willing to transfer any movable or immovable property is named as a Donor. Furthermore, a donor should be an individual who is not mentally ill and is capable to agree. If the individual is a minor, then the donor is not capable to transfer the property or to enter into this type of contract.
Any individual who receives the gift or to whom the transfer is made is known to be a Donee.  if in case donee is a minor by age, then the gift would have to be sanctioned by donee’s guardian in the place of the donee. Once the minor attains his/her adulthood, the gift can either accept the gift or return the gift in case of the responsible gift or if the gift is attached with some terms and conditions.

The essential clauses in a Gift Deed

There are certain things that have to be included in a Gift Deed to make it a critical legal document.

• Possession Of Property

  It would be better if you were the champ of that property in your possession and the reason to. to give the property. The property should exist during the process of making a gift because you cannot give the property which does not exist or a property you possibly can acquire in the future.

• Clause For Consideration

  It must be mentioned in the gift deed sample that there is no transfer of money or any other type of exchange or consideration is involved, and the transferring gift is being done because of love and affection. It will not be conceived as a gift if it is applicable to how small the condition is.

• Clauses For Revocation

  It is best to avoid dispute and complications in future; however, it is not compulsory. Both the donor and donee have to correspond and agree on this clause, which needs to be stated, not entailed.

• Details Of The Property

  An in-depth description of the property should be included, which may mention the address, structure, location, colour, area, and son.

• Free Consent

  The transfer of the property should be free from any unjustified influence, fear, coercion, or threat. The gift should clearly explain that the transferor has a clear purpose of doing so, and the transfer is on the own free will of the Donor.

• Rights And Liabilities

  If there are any additional rights or liabilities, it can be attached under this clause and it should be announced in the gift deed. Claims may include- any rights about the further sale or leasing of its subsidiary.

• Details Of Donor And Donee

  The relationship between the donor and donee is important to justify, whether they both are blood relatives or not. Some state governments also provide a grant on stamp duty if gifts are done to blood relatives.

• Rights Of Donee

  A distinct indicant of Donee rights and responsibilities which is attached as a part of the gift deed property can be sold.  This clause includes the donee rights and power to make modifications to the property, to enjoy the asset or property peacefully, and get leases or rents or any profits that come from that gifted property.

• Delivery Clause

  A delivery clause that confirms the delivery of the ownership of the property generally states about the activities of the transfer ‘expressly or implied’.