Only if the transfer is made from one family member to another without receiving any payment is the deed lawful. To be taken into account as a legitimate transaction, the Gift Deed must be registered in accordance with Section 17 of the Registration Act, 1908. The deed contains information about the property, the giver, and the done. A bankrupt donor should not be transferring property.
Gift Deed Provisions
The Gift Deed includes the information shown below:
Having possession on the grounds
The property you intend to give as a gift should have your name on the title. You can only give away an existing property. A gift deed cannot be used to transfer a future property.
Clause of consideration
Transferring the gift deed needs to be done with compassion and care. There shouldn't be any money exchanged.
Property details
The deed should specify the location, color, area, address, structure, and other details.
Donor and donee information
It is important to describe the connection between the donor and donee. Some state governments give discounts on stamp duty for blood relations.
Free choice
There should be no compulsion involved and the transfer must be voluntary. Under no circumstances can the choice be made under coercion, intimidation, or fear.
Legal obligations
There should be a notice of the donee's rights. rights to things like collecting rent, modifying the structure, and any building-related profits
Rights and Obligations
The deed should contain all rights linked to lease, the potential sale of a property, etc.
Clause of revocation
This phrase should be agreed upon both the donor and donee. Although it is not required, this provision will assist to prevent more issues.
Transport
This section includes the delivery date for taking ownership of the item.
Information Needed to Register a Gift Deed
A donation deed should contain the following:
• Details on the donor and donee, including their address, names, dates of birth, relationships, etc., should be provided.
• Information about the property, such as its location, size, and cost
• The specifics of when and where the deed shall be carried out
• Donor, donee, and witnesses' signatures together with two witnesses
• Printing all of these specifics on the proper stamp paper is required.
• The deed must be recorded with the sub-registrar office to be considered valid.
Documents Needed to Register a Gift Deed
For the registration of a gift deed, a few papers and evidence are required. They are listed below.
• Identity documents such as a passport, a driver's license, and an Aadhaar card are also acceptable.
• The records, such as the sale deed, that attests to the donor's ownership of the property
• Genuine gift document
• Depending on the state you reside in, you need submit the property valuation certificate.
Revocation of a Gift Deed
Once the donee accepts the deed and it is legally recorded, it cannot be withdrawn. It cannot be cancelled by the donor on their own. The donor and donee may revoke the deed in accordance with its revocation provision. The revocation provision ought to be valid. If the donor passes away, the heirs may request revocation.
According to Section 126 of the Transfer of Property Act, the donee's death cancels the deed and gives the donor the right. A gift deed may be cancelled in accordance with Section 19 of the Contract Act of 1872 if it is transferred under duress, threat, or any other kind of coercion.
Source from: navimumbaihouses
