All of us have spent a substantial amount of time wondering what gift can we give others. This time you can perhaps gift something that everyone is going to love. Property! Well, immovable property to be more specific. This includes land, buildings, houses, etc which you have acquired over time. As noble as your idea may be, there is small technicality involved while giving this gift. Yes, it’s the law. Immovable property is something that has a lot of value and therefore, when the title of this passes on from one person to another, it should be recorded and recognised by the law. That’s where gift deeds come into play. Now you may ask what a gift deed is.
A gift deed is a legal document that shows that the title of the immovable property has been gifted to another person other than the original owner. That is, the title has passed on from the donor (the person who is giving the gift) to the donee (the person who is receiving the gift).
This gifting process, of course, involves you spending a good deal of money and time. At least, until now. This is where we step in. We, at LegalDesk.com, offer you not just customized gift deeds but multiple other legal documents which are easy to access, use and definitely save you a lot of money and time!
Understanding A Gift Deed
A gift deed is a document that shows that a donor (person giving the gift) is transferring the title of the property, be it movable or immovable (although movable property, ideally does not require a gift deed), to a donee (who is the person receiving the property) without having paid a price or consideration mostly due to the relationship with the donor, but is not restricted to such relations. A gift deed is frequently created in favour of relations such as wife, husband, children, grandchildren, nephew, niece, uncle, aunt etc. Gift deeds are created mostly in appreciation of a relationship but they also have some financial benefits such as lesser stamp duty and registration fee.
The procedure for creation of a gift deed is mostly uniform across the states and is regulated by the Transfer of Property Act, 1882 and the Registration Act, 1908. Section 122 of the Transfer of Property Act mandates the definition of a gift as requiring the acceptance of the Donee within the lifetime of the Donor for it to be legally valid. Another requirement for the same is the lack of a price and consideration, otherwise, it would become a sale.
Gift deeds are also irrevocable, meaning, they cannot be called back once the transfer has been made unless there were exceptions to the transfer before the document was signed.
A Valid Gift Deed
For a gift deed to be valid, there are certain conditions that need to be met. They are:
- There should be acceptance by the Donee within the lifetime of the Donor.
- The transfer should not be made by a minor. That is, a minor should not be the donor.
- A donor should be of sound mind and know the consequences of his actions.
- The property transferred should legally be held by the donor. He/she cannot transfer a future property over which he/she has no legal title.
- When the transfer of the property is influenced by factors like coercion or undue influence which would vitiate the free consent of the donor it is not considered valid.
- When registration of the transfer does not take place.
Gift Deed Registration – The All Important Task
When the document recording the gifting of the property is signed by both the parties, it needs to be registered in the sub-registrar’s office for it to be legally valid and have the capacity to be used in the court of law.
In Rajasthan, the rates of stamp duty are as follows:
|Stamp duty for relatives which includes father,mother, son, daughter, brother, sister, daughter-in-law, son-in-law,||5% of the market value of the property.|
|Registration fee for gift deed||1% of the market value of the property.|
The value of stamp duty varies across states because it is a part of the state list and because of the difference in valuation of property across the states and the kind of revenue the state government is able to make out of such transfers.
And LegalDesk Comes To Your Rescue
You no longer need to hassle your way through your lawyer’s office to acquire a gift deed. All you need to do is login in to our website and check out the services we offer for making not only gift deeds but also all other kinds of legal documents. Once you fill up the details in the ready template of gift deed, you can download a copy. You can get in touch with our support team if you require any customisations in the document.