Gift Deed

Gift Deed Explained

A gift deed is an important document that offers the property transfer feature as a gift to someone else or your trustable person. It is also called a gift of property. When you gift your property while using a gift deed to your loved ones, it has certain monetary implications that you should analyze before any process. 

A gift deed rules and agreement happens between two parties. You can transfer the ownership of movable or immovable property to your trusted person. It is a popular method in India to gift your property to your loved one.

Requirements for Gift Deed

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• -To make a gift deed, the donor needs to be capable.
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• -The recipient must accept the gift during the donor's lifetime.
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• -The act of giving must be voluntary and motivated by love, affection, and benevolence.
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• -The gift item needs to be distinct and easy to locate.
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• -The donation deed must be signed by the giver and done in writing.
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• -The Registrar of the Sub-Registrar's Office must get the gift deed registered.

What kind of properties can you gift under a Gift deed?

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• -Property with a Movable or Immovable Nature
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• -Tangible Property
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• -Property Eligible for Transfer
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• -Existing Property

Documents Required for Gift Deed Registration:

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• -Original, signed donation deed.
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• -Copies of the donor's passport and one's driver's license are examples of identification documents.
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• -Evidence of the person's ownership of the property.
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• -Additional court orders or documentation for gift deeds which demonstrate the property's value.

Gift Deed Requirements for Immovable Property

Gifts of properties have to be acknowledged by the donee while the donor is still alive; otherwise, the gift will be declared invalid. According to Section 122 of the Property Transfer Act of 1882, the property must be registered with the sub-registrar to be considered a gift. Like any other property advancement, it will be subject to stamp duty and registration fees, which vary between states. Furthermore, the donor must be eligible and not a minor.

A gift deed should also include all necessary details regarding the donor, donee, and the property being moved. Along with their names and contact details, it should bear the written consent of two individuals who were present when the property was transferred. Keep in mind that it is usually preferable to have a lawyer create the gift deed and conduct the transfer process in their presence.

Can a Gift Deed be Canceled? 

A gift that has already been given and legally recorded cannot be cancelled. It becomes the donee's property following acceptance. The deed cannot be unilaterally revoked by the donor.  Additionally, a gift deed is not lawful if the parties have stipulated that it may be revoked in whole or in part by the donor's simple will. However, there are some circumstances in which gifts may be rescinded under Section 126 of the Transfer of Property Act of 1882. 

The postponement of the Gift Deed is included in the cancellation itself, and ownership of what was gifted will go back to the donor. 

WebLex’s Stance:

A gift deed is an ideal way to transfer the ownership of your property to your dear one. This is among the important legal methods to pass the property authority to someone else whom you trust. A gift deed also needs deep consideration as it contains confidential information and your consent. You should be sure before preparing a gift deed because after it is recorded in legal documents, it cannot be revoked.