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Property Gift Deed Registration

When a property is transferred to another in the form of a gift deed, there is a shift in ownership which is protected by law. The following article talks about property transfer, the need to register a gift deed, registration procedure, and documentation. Also, to know under what circumstances a gift deed can be revoked, keep reading.
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Giving a gift is one of the most common ways to express affection and love to a family member. However, only a few know about the legal implication of gifting something. A gift deed is valid only if it is given out of love and affection, without any consideration in return by one family member/friend to another. 

Legally, a gift of movable or immovable property can be given by executing a gift deed. A gift deed is a legal document that represents a transfer of gift from one person known as the donor, voluntarily to another person known as the donee or receiver.

A properly executed gift deed transfers all the rights and obligations relating to a property/gift from the owner to the receiver who becomes the absolute owner of the property. A gift deed must clearly state the description of property gifted and the name of the owner and receiver.

 

Section 17(a) of the Registration Act states that any gift of immovable property must be executed through a registered gift deed. Before planning to execute a gift deed, it is also important to know about what can and cannot be gifted under the law. Section 122 of the Transfer of Property Act, 1882(1) defines a gift as: 

  • A movable or immovable property

  • An existing property

  • A transferable property &

  • A tangible property

For more information on gift deed registration or instant expert consultation on the same request a callback from us now!

Registration of a Gift Deed

The first and foremost step is to hire an expert property lawyer to get your gift deed made and evaluated. As it is a contract, the donor and receiver must be eligible to enter into a contract and the gift deed must be made without any coercion or compulsion for it to be valid. Thus, a minor i.e. someone who is under the age of 18 years cannot be a donor.

Top Read: Property Partition Laws in India

What happens if the Donee is a Minor?

If a property is gifted to a minor, it can be accepted by his/her legal guardian on their behalf. It must be accepted during the lifetime of the donor, otherwise, it would be rendered invalid under the property laws in India(2). The minor can accept or reject the gift after attaining the age of majority.

Importance of Registering a Gift Deed

Under Section 123 of the Act, the title of the gift is not passed to the receiver unless the gift deed is registered. Registration of a gift deed is done in accordance with the Registration Act, 1908(3). Registration charges of a gift deed are based on the value of the gift.

Gift Deed Registration Procedure

For completing the registration of a gift deed, the following formalities need to be fulfilled: 

  • It must be signed by the donor who is gifting the property.

  • It must be attested by at least 2 witnesses.

  • Requisite gift deed stamp duty and transfer duty must be paid. Stamp duty for registering of gift deed in blood relation differs in every state.

  • Both the donor and receiver must be present in the office of the Registrar.

  • All requisite documents must be submitted to the Registrar's office.

Featured Read: How to Get a Legal Heir Certificate in India?

Documents Required for Property Gift Deed Registration

  • Original Gift Deed 

  • Original Sale Deed of the property

  • Encumbrance Certificate

  • A document certifying Ready Reckoner Value and Pan Card of both the parties to execute the gift deed.

  • 2 witnesses at the time of executing the gift deed.

  • Other documents may be required according to State requirements.

To get your gift deed executed in the most effective and hassle-free way, hire from among the top property lawyers via Myadvo.

When can a Gift Deed be Revoked?

A gift deed for an immovable property cannot be revoked or cancelled by the donor at a later stage unless there is a specific provision that allows the donor to do so. Under Section 126 of the Transfer of Property Act, the gift deed may get revoked or suspended if the donor and receiver agree that on the happening of a specific event, the gift would be revoked. A gift deed may be revoked if it clearly mentions that the donor or their legal heir would get the property back upon the death of the donee.

The format of the gift deed remains the same whether the property is movable or immovable. The gift deed must include the date and place where the gift deed registration is taking place, details of the donor and receiver, the relationship between them, and details of the gifted property.

Need to get your gift deed registered? Talk to the legal experts at MyAdvo! Email us at info@myadvo.in or call now at 9811782573.

External Links:

[1] The Transfer of Property Act, 1882: A detailed view of the Transfer of Property Act, 1882

[2] Property Rights: A sitemap to the property right in India

[3] The Registration Act, 1908A sitemap to The Registration Act, 1908

FAQs:

1. Do we have to register the gift deed?

A: Chapter 17(a) of the Registration Act 1908, that deals with the transfer of property, makes registration of gift deed compulsory.

2. Can you sell a gift deed?

A: Yes. It is yours so you can do what you want with it. But once gifted, it cannot be revoked until proved the transfer was forced through fraudulent means.

3. Is gift deed a legal document?

A: Yes. The deed document is legal proof of property transfer from one to another. 

4. Does tax imply on gift deeds?

A: If the total amount/value of the deed does not exceed Rs 50,000 in a year, it is exempted from tax.

5. Does the donee have to pay stamp duty after receiving the gift deed?

A: Yes. As per property transfer laws, the donee becomes liable to pay pending dues such as electricity bills, maintenance, etc.

Reviewed by:
Prachi Darji
Associate - Legal, MyAdvo Techserve Pvt. Ltd.
Published on 3rd Sep, 2019
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Prachi Darji is an expert corporate lawyer, currently associated with MyAdvo as an in-house legal advisor. She has finished B.Sc, LLB(Hons.) from Gujarat National Law University. She has an expertise in various domains of law including Intellectual Property Law, Company law, etc. At MyAdvo, she is taking care of litigation strategies and internal legal processes.

LinkedIn: https://www.linkedin.com/in/prachi-darji-539345118

Email: prachi@myadvo.in

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