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Have you ever considered the internet giving you the facility to make various legal documents  ONLINE? This is, we’re sure quite unheard of, for we at LegalDesk have started this facility only recently. Also, we are very happy to announce that we also engage in creating Gift Deeds, not just in any of the metro cities but all over India.

Here’s a quick guide to help you through understanding everything that is absolutely necessary about Gift Deeds in Visakhapatnam, Vijayawada, Nellore or anywhere in Andhra Pradesh.

What Is A Gift Deed?

A Gift Deed is the transfer of a property which doesn’t involve the consideration of money. Section 122 of the Transfer Of Property Act, 1882 defines the Gift as, “the transfer of certain existing movable or immovable property made voluntarily and without consideration, by one person called the Donor, and accepted by or on behalf of the Donee.” The acceptance of the Gift Deed must be made during the lifetime of the Donor and while he is still capable of giving.

Some of the points inferred from the above definition can be broken up as follows:

• Voluntary decision of the Donor

For any transfer of property to be considered as a Gift Deed, the favor expressed by the Donor to gift a property to the Donee should come voluntarily. Any evidence suggesting to the contrary can be successfully contested in court. Most cases of revocation will either be due to Coercion or Undue Influence on the part of the Donee.

• No Consideration

Existence of any monetary consideration is not permissible but only natural love and affection is considered to be a consideration for a Gift Deed. This can also be contested in court for revocation of a Gift Deed.

• Acceptance of the Gift Deed

When a Donor presents a gift to multiple Donees, where one accepts and the other rejects the property; the only gift transferable is the former and the latter will not constitute the Gift Deed, for acceptance is crucial while executing a Gift Deed. Also, acceptance of the Gift Deed must be done within the lifetime of the Donor, after which the Gift Deed will be rendered void.

How To Make A Gift Deed?

The process involving the making of a Gift Deed can be dissected to four brief steps-

• Execution of a Gift Deed

You have a certain asset in mind, it could be a vehicle, a piece of jewellery or a immovable property. In order to execute any of the above properties in a Gift Deed, the property has to be already registered in the name of the Donor. All the necessary information including the name and addresses of the Donor and the Donee, relationship between the two parties and the cause of the creation of the Gift Deed goes into this document.  Also one can further add or customize necessary clauses suiting to their needs using our portal to create a Gift Deed.

• Acceptance by the Donee

Once the Gift Deed is drafted and reviewed, it is time to print it on a Stamp Paper of suitable denomination, as recommended by Andhra Pradesh State Government. The Stamp Duty recommended based on the value of the property is to be paid after which the Donor and the Donee should then sign the Gift Deed in the presence of two witnesses.

• Registration of the Gift Deed

Registration of a Gift Deed is a formality in the process of making a Gift Deed which is not compulsory for movable properties. It is otherwise compulsory for the Gift Deeds of immovable properties where the transfer of property is required to be registered at a local Sub-Registrar Office. To transfer a property after the Donor’s demise, it can be executed only through a Will.

Stamp Duty Charged For Executing A Gift Deed

Of late, the creation of Gift Deed doesn’t necessarily require one to print the Gift Deed on a Stamp Paper as long as one pays the Stamp Duty.

Gift Deeds attract very less Duty when the transfer occurs among the members of a family. This is not uncommon to many states where, the wife, husband, son, daughter, daughter-in-law, brother, sister, father and mother who form the definition of family can pay a discounted value of the Stamp Duty.

Registration Of Gift Deed

The Transfer of Property Act, 1882 and the Registration Act, 1908 prescribe compulsory registration of certain documents, among which the Gift Deed of a immovable property is one. The document shall be presented for registration within four months from the date of signing of both the parties.

In case of delay in presenting within the stipulated four months citing unavoidable circumstances by the parties, one is liable to pay the penalty (subjected to maximum of ten times the registration fees). But no document shall be accepted for registration after lapse of eight months from the date of execution of the Gift Deed.

By Registration, of Transfer of Immovable Property, the Gift Deed will become permanent public record. This is a crucial step as those getting transfer of property should verify whether such property has been previously encumbered. If a Deed of Transfer is not registered, it cannot be admissible as evidence in court in the event of a legal dispute.

Gift Deeds made in favour of both familial and nonfamilial members solicits a similar charge of registration which is 0.5% of the total market value of the property (subject to a minimum of Rs. 1,000/- and a maximum of Rs. 10,000/-).

Here is a list of essentials one ought to present at the District/Sub-Registrar Office while registering a Gift Deed –

1. Route/Map: This route map shall be drawn so that even a stranger can locate the property by using the landmarks mentioned in the map. The map must indicate where exactly the property is located and the nearby landmarks such as post office, police stations, temple, mosque, etc.

1. Address proof of parties, witnesses: The address proof recognizable by the department includes passport, ration card, Aadhar Card (UID), bank passbook containing the full address of the person, driving licence.

Create Gift Deed At LegalDesk

Creating your own Gift Deed online is now only a task of few minutes. Using our pre-drafted templates you can create your Gift Deed online and get it delivered to the location of your choice. You can even make any customisations that you may require, our support team will help you out with it.

To start drafting your Gift Deed, click the ‘Create Document’ button below and start customizing through one of our ready-to-use, lawyer verified documents.

Once the document is ready, fret not, as our delivery services will do a prim job of delivering the Gift Deed to your doorstep!