Tuesday, May 22, 2018
by
Indian Real Estate News
Did you know that you can gift a property you own to your family member or a friend? Section 122 of the Transfer of Property Act of 1882 allows transfer of an existing property (movable or immovable), by way of gift. All you need to do is execute a Gift Deed in favour of the recipient to make the transfer valid and register it to save yourself from any legal implications of the gifting process.
What is a Gift Deed?
A Gift Deed is the legal document required to voluntarily transfer an existing immovable property as a gift from the donor (owner of the property) to the done (person/institution receiving the gift) without any exchange of money. The done must be alive to accept the gift and must do so within the lifetime of the donor, else the gift is rendered as void.
It must be noted that only a person who is eligible to contract can execute a gift deed, which means minors cannot transfer property as a gift. However, they can accept a gift with a natural guardian as their nominee, who will act as a manager of the gifted property until the done is an adult.
The following requirements must be fulfilled for a gift deed to be valid:
- The gift must be a registered property
- The gift must be transferrable
- The gift must be an existing, and not a future property
- The gift must be tangible
- The gift must be made by the donor out of natural love and affection, without any considerations
- The gift must be made by a solvent donor, who is over 18 years of age and possesses a sound mind
- The gift must be accepted by the done while he is alive and within the lifetime of the donor
- The gift must not involve any exchange of money
Registration of Gift Deed
The execution of gift deed and its acceptance by the done is not enough is not enough for it to be valid. As per Section 123 of the Transfer of Property Act, a gift deed cannot pass any title to the done and will be rendered void unless it is registered at the respective Sub-Registrar Office. According to the Section 17 of the Registration Act, 1908, the property being gifted must be valued and stamp duty of the recommended value has to be paid for the registration of gift deed. The gift deed must be attested by two witnesses to complete the registration process and transfer the title. If you are planning to gift your loved ones a property, then you should seek help from our legal experts at Future Focus for a hassle-free transfer.
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