A Gift Deed comprehensively determines the authorization for transferring the property from one person to the other. A Gift Deed imparts an explicit legal standing on the subject matter of property transmission. It helps maintain a smooth and efficient pattern of the regulatory framework concerning property transmission under the wide ambit of the law. Multifarious provisions and statutes are channelized in the direction of providing cogent validity to a Gift Deed to become effective in a sophisticated format. It also provides a robust support system in regulating the standards of the structural framework concerning the transmission of property easily. A Gift Deed substantially acts as a legal source that there must be no stipulation in advance for transmitting the property. Therefore, every individual who wants to transfer property to any person must possess a valid Gift Deed as accentuated by the regulatory provisions of law. This blog intrinsically aims at providing a comprehensive approach to analyzing the basic nuances concerning the Gift Deed and the registration process for Gift Deed in a detailed format.

Gift Deed

An essential legal document known as a gift deed represents the transfer of a gift from one individual to another by the law. A gift deed is a legally binding written document that permits the donor to freely move an existing piece of real estate to the donee by Section 122 of the move of Property Act^[1], which dates from 1822.

Only when given out of love and affection by a family member or friend to another, or “without any consideration” in exchange, is a gift deed legal. According to Section 17 of the Registration Act of 1908, you must have a registered gift deed to move immovable property.

Significant Clauses concerning a Gift Deed

A Gift Deed is a crucial legal document, so you must state certain things in it.

These are listed below:-

·         Consideration Clause: The transfer is being made out of love and affection, and it should be made clear in the Gift Deed that there is no trade of money or any other kind of consideration. If it’s important for determining how tiny the consideration is, it won’t be regarded as a gift.

·         Property Ownership: The ideal situation would be for you to retain title to the immovable property you wish to gift if it is currently in your possession. You cannot gift anything that you may acquire in the future, so the property must be present when donating.

·         No-Fee Consent: The transfer shouldn’t be subject to any excessive pressure, coercion, dread, or threats. The gift must explicitly state that the transferor is doing it voluntarily and that doing so is their clear purpose.

·         Property Specifics: A thorough description of the property must be provided, which may include details such as the address, building’s structure, color, position, and region.

·         Details of the Donor and the Donee: It is crucial to understand the connection between the donor and the donee to explain whether or not they are blood relatives. Additionally, if gifts are given to blood relations, some state governments offer a stamp duty discount.

·         Rights and obligations: Any extra rights or obligations arising from this clause must be disclosed in the gift deed. Any rights about the additional selling or leasing of it may be considered an entitlement.

·         Title of Donee: The Gift Deed’s attached portion is created by a clear sign of the Donee’s rights. It contains the donee’s rights to make alterations to the property, use the property in peace, and receive rent or any other proceeds from the property.

·         Clause of Delivery: The words “expressly or impliedly” refer to the actions of the transfer in a delivery clause, which would affirm the delivery of possession of the property.

·         Revocation Clause: To prevent potential problems in the future, it is suggested but not required. This clause, which must be expressly stated and not implied, requires the donor and donee’s mutual agreement.

Essential Documentation

After verifying that your Gift Deed is signed and witnessed, you must pay the stamp duty and registration fees by your state’s laws.

Other papers you should bring include:

·         Aadhar Card ID Proof, such as the driver’s license, passport, etc.

·         Execution of the original gift deed

·         A sale deed-style document to demonstrate benefactor ownership of the property

·         At the moment the Gift Deed is executed, two witnesses are required.

·         Certificate of Encumbrance

·         A statement attesting to the Ready Reckoned Value and any other property-related agreements you may have signed.

·         According to state regulations, other materials might be necessary.

This collection is not all-inclusive, so you may need additional paperwork. Depending on your state and other factors, you might need to include certificates proving the value of your land.

Procedure

The following procedure must be followed to write the Gift Deed:-

Step 1: Draft a document that includes the following components.

·         Include the execution’s date and location.

·         Date of birth, residential address, name, and information about the relationship between the donor and recipient.

·         Complete details of the land

·         Along with the donors’ and recipients’ witnesses, there must be two witnesses who sign the document.

Step 2: Get it published on stamp paper with the appropriate value according to each state’s stamp rate

Step 3: Please also have the gift deed documented at your local registrar or sub-registrar office.

Conclusion

The aforementioned text imparts an unambiguous picture concerning the Gift Deed. A Gift Deed validates the functioning of property regulations, whether movable or immovable on a comprehensive scale. It provides an efficacious structural model of property transfer systemization to a larger extent. It also emphatically adjoins the structural framework of property regulations with the ideal pattern of law. A Gift Deed permits a person to transfer the property to another person in the capacity of full acknowledgment of the laws analogous under the theme. Our legal experts at BizAdvisors.io tend to provide a robust support system in the context of assisting individuals to easily avail of a Gift Deed. You can freely contact our legal consultants at BizAdvisors.io for any kind of professional assistance or support in the context of the structural framework of the Gift Deed.

Read our article:Everything you need to Know about Gift Deed Registration in India