Apply For Gift Deed
LET US HELP YOU
Call us: +91 9313-454647
What is a Gift Deed?
According to section 122 of the Transfer of Property Act, 1882, you can transfer immovable property through a gift deed. Like a sale deed, a gift deed contains details of the property, the transferrer and recipient. But it allows you to transfer ownership without any exchange of money.
Registering a gift deed with the sub-registrar is mandatory as per section 17 of the Registration Act, 1908, and as per section 123 of the Transfer of Property Act. If you don’t do this, the transfer will be invalid.
What can be Gifted?
To qualify as a valid gift, a thing must have the following properties:
It must be well defined and in existence (can be both movable or immovable).
# It must be transferable.
# It should exist in the present. It should not be a future property.
# It should be tangible.
Can a Gift Deed be challenged?
The gift deed can certainly be questioned in the court of law by filling a suit for such declaration. However, it will be challenged only if you are able to establish that the execution of the deed was not as per the wish of the donor or was executed under misrepresentation, fraud etc.
What is the procedure of revocation of a Gift Deed?
Section 126 of the Transfer of Property provides for conditions where a gift can be revoked. the following are essential ingredients for revocation of gift:
there must be an agreement between the donor and donee that the gift shall be suspended or revoked on the happening of a specified event;
such event must be one which does not depend upon the will of the donor;
the condition as to the suspend or revocation should be agreed to by the donee at the time of accepting the gift. And,
there must exist a ground , except want or failure of consideration, on which a contract may be rescinded.
the condition should not be illegal, or immoral and should not be repugnant to the estate created under the gift.
Section 126 is controlled by sec. 10. As such, a clause in the gift deed completely prohibiting alienation is void in view of the provisions contained in sec. 10.
A gift, which was not based on fraud, undue influence or misrepresentation nor was an onerous one, cannot be canceled unilaterally. Such a gift deed can be cancelled only by resorting to legal remedy in a competent court of law.
How To Register Gift Deed To Make It Valid?
A gift deed is the exchange of a property starting with one individual then onto the next made deliberately. There are two people engaged with this exchange of property:-
I) Donor – The Person who exchanges the property.
II) Donee – The Person to whom the property is being exchanged.
The donee must acknowledge the property, and he should acknowledge it amid the lifetime of the donor. The exchange of property can go to vain, if the donee dies before accepting the gift. An exchange of gift will be valid, only if the donee acknowledges the gift amid the lifetime of the donor.
Is Registration Necessary?
Any Gift Deed, movable or immovable, if contested in court will stand as an upholding or supporting evidence only if it is registered. Although the Gift Deed of a Movable property doesn’t mandate registration in the Transfer of Property Act, you may or may not register. However, it is important to remember that an unregistered Gift Deed is not legally secure.
On the other hand, the transfer of an immovable property under Chapter 17 (a) of The Registration Act, 1908 the Gift Deed instrument is made compulsory.
Also, registration begs the assent of both the parties, i.e., the Donor and the Donee.
There may be instances where you might want to gift an expensive car, villa or a property and chances though few, are the Donee may refuse to accept the Gift. Apart from rendering the Gift Deed void from the beginning, it cannot be registered.
WHY USE LEGALSTARTUP?
STILL NOT CONVINCED?
A: 310. 3rd Floor, Dwarkadheesh Plaza, Plot No. 1,
Dwarka Sec-10, Main Market 110075