Gift Deed

All about Gift Deed

In India, we have glimpsed an endless number of inheritance instances while we have also heard of voluntary transfer of property possession. But what do you legally and officially call it?

In legal terms it is known as a gift agreement in India and to understand more about the same, let’s dig a bit deeper with specified details and things that are included in a drafted gift deed.

What do you mean by a gift agreement ?

When the owner of a movable or immovable property voluntarily transfers the possession to someone else legally it is usually done with a gift deed.

Officially a gift deed is drafted when the owner of a movable or immovable property wishes to transfer the ownership to another person voluntarily. However, one must not confuse it with a will.

Unlike a will, a gift deed offers instant transfer without the requirement of visiting the court of law. Hence, it is considered as a more productive and time saving procedure. It prevents or avoids, the probable disputes that might arise in the future relating to the queries of succession or inheritance.

What all must be included in a gift agreement in India?

A drafted gift deed consists of a few important details. A few of them are also listed below.

• The date and place at which the gift deed is decided to be implemented.
• The minor to major details of the movable or immovable property being transferred according to the deed.
• The information and details relating to the parties involved in the transaction. The name, address, date of birth, signatures and relationship between the donor and donee are few of them.
• The execution of the deed can take place only in the presence of two witnesses. The signatures of these testimonials or witnesses on the paper are a must.

After the successful drafting of the gift deed, it must be printed on stamp paper and registered at the registrar or sub-registrar office of the area.

How to draft a gift agreement easily?

The paperwork and execution of such legal matters seems to be a task which is complicated but important. However, to deal with such matters, it is crucial to take even the minute details into consideration which can be best executed and performed with online advocate consultation.

The free lawyer consultation online service not only saves your time and energy, but offers professional advice with experience and knowledge. It prevents any chances of possible frauds and mistakes in the official paperwork.

Important clauses in a gift deed

A gift deed must include some important clauses that ensure the authenticity and validation of the voluntary transfer. A few of them are also explained below.

1. The consideration clause included in the gift deed ensures that the transfer is completely voluntary and not influenced by any external factor. It signifies the absence of any exchange relating to money and mentions that the transfer is entirely based on personal love and care.
2. A person can only transfer the movable or immovable property if he/she holds the rightful ownership. The title holder of the property is only authorised to execute such a process legally.
3. The details of the property being gifted must be included in the gift deed. The information could be related to the type of property, area, address, location etc.
4. A few of the governments offer concession on the stamp duty in case the parties involved in the transaction are blood relatives. However, it is an unavoidable step to mention the actual relationship between the donor and donee in the gift deed being drafted.
5. Any rights or liabilities that may be related to the property being gifted must be listed in the deed. The clauses relating to the authority of future selling and purchasing of the gifted property should also be explained.
6. The deed should also mention that the property being transferred is willfully accepted by the donee.
7. The gift deed should also include the intention relating to the transfer of the property ownership in a direct or indirect way.
8. A revocation clause may not be necessarily included in a gift deed.

How to register a gift deed?

The registration of gift deeds is also an important step and you require the following documents to officially do so.

• Legal papers identifying the donor as the actual owner of the property being transferred.
• The gift deed with rightful signatures.
• The identity proofs like licences and passport, of the donor and donee.
• The official court orders or papers, mentioning and proving the actual worth of the movable or immovable property involved in the transfer.

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