what is a gift and What to include in a gift deed?
Dated: 2024-05-01 22:08:11
what should a gift deed contain to make it valid.
Answers by Lawyers
Transfer of Property Act, 1882, defines ‘gift’ as transfer of existing moveable or immovable property, without coercion or duress, made voluntarily with natural love and without any consideration or conditions. The person who donates the property is called ‘donor’, while the one who receives it is called ‘donee’. A transfer without any form or consideration or condition is called as a gratuitous transfer.
Requirements of a valid transfer through a gift deed: -
- The donor and donee, must be capable of donating and receiving the gift. i.e. the donor must be of sound mind and should have attained the age of majority, while the donee also must have attained the age of majority. Sec 7 of the Act provides for the grounds which determine the competency of a person to execute a gift deed.
- The deed has to be signed by the donor and attested by a minimum of two witnesses.
- It is mandatory under the Registration Act, 1908 to register a property with the sub-registrar of area, where the property is located or the part of property is located. The date of execution of the date is different from the date of registration. The document has to be registered within 4 months from its date of execution and the document shall come into effect from the date of execution. It is important to register a gift deed, as not doing so makes it invalid and it is not admissible as an evidence. Being an invalid will, the property title is not transferred to the donee and the donor is the owner of the property.
- The transfer has to be absolute and without any consideration. The donor must do so with natural love and there should be no monetary consideration attached to the transfer. In case the transfer is executed for some monetary consideration, i.e. some monetary benefit then the transfer won’t be a gift. In case any condition is imposed on the gift, then the same should not be in conflict with the Sec !0 to Sec 34 of the Transfer of property Act.
- The transfer should not be made out of fear /apprehension of fear, undue influence, misrepresentation, coercion or duress of any kind. The donor must understand the consequence of his act and should also have the clear intention to make the gift.
- Donor should be the owner of the property. Only the property which is owned by the owner can be gifted away in the deed. The donor cannot gift away the property which is owned by the family, unless it is divided or he/she obtains the consent of the other coparceners . The deed can contain only the current property under the possession or ownership of the donor, and not any property which he might or may acquire in future.
- The deed should contain the description of the property donated; i.e. area, name, survey number, location, etc.
- Appropriate stamp duty has to be paid to the concerned authority.
- There should be acceptance of the gift by the donee absolutely, wholly and unconditionally; and if rejected by the donee then the gift becomes void.
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