Meaning of Gift deed
A gift deed is a legal document that represents the transfer of moveable or immovable property. It is referred to as legally binding documents defined under Section 122 of the Transfer of Property Act, 1822. It is valid in cases it is given out of love or affection and made voluntarily by the owner without any exchange of money.
What all can be gifted?
- An immovable or movable property.
- The property should be tangible.
- A transferable property.
- An existing property. It should not be a property in the future.
Benefits of a Gift deed
- It helps to record the transfer of the property to the receiver.
- It has evidentiary value.
- It acts as legal proof.
- It provides legal protection in cases involving any future disputes.
Steps involved in the drafting of Gift deed
You should keep in mind a few details at the time of drafting a Gift Deed which is as follows:
STEP 1: Draft a deed.
While drafting a gift deed the following essentials are necessary which are as follows:
- The date and place where the deed is to be executed.
- The information about donor and donee. Such as the name, residential address, the relationship among them, date of Birth, and so on.
- The details about the property
- Should consist of two witnesses
- The signatures of donor and donee along with that of the witnesses.
STEP 2: You have to get it printed on the stamp paper of appropriate value depending upon your state.
STEP 3: You have to get the deed registered at your registrar or sub-registrar’s office.
Document required for gift deed registrations
You have to make sure that your gift deed has been signed and attested by witnesses. You have to keep in mind to pay the stamp duty and registration charges as per your state regulations. You are required to carry a few other documents which are as follows:
- The original gift deed
- Share certificate in case of gift deed of a flat
- Maintenance receipt in case of gift deed of a flat
- The ID Proofs such as the Driver’s License, Passport, and so on.
- The PAN Card
- The Aadhar Card
- The Sale deed document to prove donor title to the Property.
- Birth certificate of donee in case of gift deed in blood relation to proving the relationship and to get concession in stamp duty on gift deed.
- 2 Passport size photographs of donor and donee at the time of gift deed registration.
- Light Bill copy.
- The other Agreements which you may have entered into concerning the property.
The list is not exhaustive as you might need other documents like certificates relating to the value of your property depending on your state.
Gift deed Registration process
A step by step guide for a gift deed registration process which should include the following:
- STEP 1: For registration of a gift deed a lawyer will have to prepare a gift deed draft. You can opt for a gift deed draft in Marathi for registration in case you have an issue understanding English.
- STEP 2: The lawyer will send a gift deed draft to your email and get approval from you.
- STEP 3: The lawyer will lodge a gift deed and compilation of documents required for gift deed registration after getting the approval. It will be submitted in the office of the sub-registrar by taking both the party signature.
- STEP 4: If the document queried by the office of the sub-registrar, the gift deed registration lawyer will resolve the same.
- STEP 5: You have to visit the office to get approval on the draft by Sub Registrar.
- STEP 6: The applicable stamp duty will be paid online after the sub-registrar approves. The challan to the documents is to be attached.
- STEP 7: The execution and registration of the gift deed are final.
- STEP 8: After registration is completed you can wait to take handover of the document. You can also have the document be delivered on the second day at your place.
- In the case of the land gift deed, the donee should submit a copy of the registered gift deed in the Village Gram Panchayat office. It is done to transfer the property in the name of the donee.
- If the land gift deed is to be submitted in the Collector office if the land is in the city. It is done to change the name on the property card.
- In case of gift deed of the flat, the donee should submit a copy of the registered gift deed in the housing society. It is done to transfer the share certificate in the name of the donee.
Can a gift deed be revoked/cancelled?
A gift that is registered with due process of law cannot be revoked after acceptance. The gift becomes the property of the donee. The deed cannot be revoked by the donor independently. A gift deed is not valid where the parties agree by the mere will of the donor the deed shall be revocable. It can be revocable either in part or whole.
After a revocation, the possession of the property is returned to the donor. There are certain grounds when gifts can be revoked under Section 26 of the Transfer of Property Act, 1882:
- After an agreement between the donor and donee, if specified events happen or not, the gift shall be revoked. The event that has occurred shall not be controlled by the donor. Also, both parties must have agreed to such a condition in terms of the Gift Deed.
- The conditions established should not be immoral, illegal or reprehensible to the property.
- A gift can be revoked if it violates Section 19 of the Indian Contract Act, 1872. It says the agreement should not be made of coercion, undue influence and misrepresentation as it will be termed as voidable.
Also, if the gift deed was made by obtaining consent on the above grounds it can be revoked. Also in case, the donor dies then his heirs have the right to file for revocation of the deed.
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