What is a gift deed?
A gift deed is a legal document that describes the voluntary transfer of gift from the donor (owner of the property) to the donee (receiver of the gift) without any exchange of money. A gift deed for an immovable property lists down every detail of the transaction that is necessary according to the law.
Requirements for gifting under Indian Laws
In India, the Transfer of Property Act of 1882 deals with the provisions related to the gifting of immovable property. According to the act, a donor has to be competent. Any person who is a valid owner of a property can gift it; however, a minor cannot gift a property without the assent of his guardian.
According to the act, certain requirements are needed to be fulfilled before executing a gift deed. These are-
• The property must be transferable, that is, it must be of the capacity that it can be given to the donee as a gift.
• The donee must show his acceptance for the gift. A property cannot be gifted if the donee refuses to accept the gift.
• The gifting of an immovable property needs to be registered and signed before two witnesses.
How to register a gifted property?
It is mandatory to register a gift deed for immovable property in order to claim legal ownership of the same. Registration of a gift deed includes paying of the registration fee and stamp duty which are done as per the provisions of Registration Act, 1908. Further, a gift deed must include the following-
- Details of the donor and donee (name, date of birth, residence, relationship to each other, father’s name)
- Location of the property.
- Details of the property.
- Date and place of the deed.
- Signature of the donor and done.
- Signature and details of 2 witnesses at the time of property transfer.
Click Here to Download
ALSO READ:
