When someone wants to give their money or property to another individual, they utilize a gift deed as the legal document. A gift deed can be used to freely transfer real estate from the giver to the donee of either movable or immovable nature. A gift deed enables the property owner to give the asset to anyone and eliminates any potential inheritance or succession conflicts in the future. In addition to being evidence in and of itself, a registered gift deed also saves time since, unlike in the case of a will, the transfer of property occurs instantly and you are not required to appear in court to have the deed executed.
What presents must be in the form of a gift deed?
A gift deed is necessary to transfer ownership of moveable, immovable, or transferable existing property. If a dispute arises later, having a registered gift deed will help you prevent it.
How to draft a gift deed?
The following information must be included in the gift deed’s draft:
- Location and date of the gift deed’s execution.
- Relevant details about the donor and the donee, including their names, addresses, relationships, dates of birth, and signatures, are included in the gift deed.
- Complete information about the property you are creating a gift deed for.
- Two witnesses to bear testimony of the gift deed and their signatures.
After paying the requisite sum, the gift deed must then be printed on stamp paper and registered at the registrar or sub-registrar’s office, depending on the value established by the state government.
Important clauses to include in a gift deed
The format of the donation deed should include the following significant items.
- There is no use of force or money: Make sure the donation deed contains this consideration clause. The gift deed must state that no money is exchanged and that it was made out of love and affection alone, without the use of force or money.
- Consent: Such permission must not be obtained through coercion, undue influence, false representation, or threat. The consent must be uninfluenced by outside forces.
- Rights and Obligations: The gift deed must include any relevant information regarding any rights and obligations that may be related to it.
- Specifics about the Property: The property-related information must be mentioned here. The property must be described in detail, including its location, surroundings, and type if it is being given as a gift.
- Details of Property Possession: Such information will include things like the donor’s name or whether the giver actually owns the property. Additionally, the donor must be prepared to give the donee the property as a gift. As any type of property that is protected for the future would not be valid and capable of being transferred by means of a gift deed, the property must be in the donor’s legal possession.
- Details on the Donor and the Donee: Information about the donor and donee would be included in this clause. The donation document must include important details such as blood relatives. Such details would grant the gift deed’s author some sort of accommodation.
- Obligations and Rights of the Donee: The respective rights of the donee must be indicated in this section. These rights include the sole right of enjoyment of the property by the donee as well as other similar clauses relating to the transfer of property from one party to another.
- Amendment Clause: In order to prevent any misinterpretation in the future, this provision must be incorporated in the gift deed. To avoid any potential future issues, the condition must be included in the gift deed by both the donor and the donee.
What paperwork is needed to register a gift deed?
The gift deed must be witnessed by witnesses after it has been prepared. The applicant would be required to pay relevant stamp duty after such a step is completed.
Following completion of the process, the applicant must provide the following paperwork:
- Card of the party’s Aadhaar
- Documents used as proof of identity, such as a passport or other documents
- PAN cards of the parties are required in order to execute the gift deed.
- Original Gift Deed Document
- Sale Deed or other document demonstrating that the donor is the first owner
- witnesses – There must be two witnesses in attendance.
- Information or a document certifying the property’s value
- Obligation Certificate
- Any additional details pertaining to the property