Property Gift Deed: All You Need to Know About It

Legal documentation is one of the most important aspects of seeking transparency, validity, and peace of mind for everyone engaged in property transfers. A property gift deed can make things much easier as it acts as a fundamental legal document used to legally transfer ownership of property from one person to another without any kind of payment. However, one does have to pay the registration fee and stamp duty on the gift deed. This document is vital to safeguard the interests of both the donor as well as the recipient. Let us dive deeper and learn more about the property gift deed.

What is a Property Gift Deed?

A property gift deed is a legal document used when a party wants to give their property to another individual. It allows the donor to transfer their property to the recipient voluntarily. Property owners can use a gift deed to transfer their assets to specified recipients, avoiding any possible issues arising from succession or inheritance claims.

Unlike a will, a registered gift deed allows for an instantaneous property transfer, doing away with the necessity for formal court proceedings. It also provides considerable proof on its own. As a result, a gift deed not only guarantees a seamless transfer but also helps you save time.

The Importance of Property Gift Deed

The Transfer of Property Act of 1882 applies to the Gift Deed. This Act mandates property gift deed registration. This must be done by the will of the donor and must be accepted by the recipient while the donor is still alive.

Additionally, the Gift Deed only takes effect in accordance with the Transfer of Property Act after being registered with the Registrar or Sub-registrar's office. Property is transferred right away after the Gift Deed is registered. The prerequisites for a Gift Deed's legality are clearly stated in the Transfer of Property Act.

The following requirements must be satisfied for a Gift Deed to be recognised as legitimate under the Act:

•       The property listed in the gift deed must be present when the gift is made.
•       The Donor must have a clear title to the property and be its rightful owner.
•       The Gift must be given voluntarily and without being forced.
•       The Gift cannot include any type of payment or other sort of recompense.
•       The Gifted Property shall be accepted by the recipient.

Following these requirements will guarantee the Gift Deed's legality and validity in accordance with the Transfer of Property Act's rules.

Latest Update on Property Gift Deed

A maintenance clause must be included in the gift deed for parents who give up their property in exchange for their children receiving care as they age, according to a recent ruling by the Supreme Court of India. The Gift Deed is irrevocable if this is not done, even if the children don't take care of their parents as they are supposed to.

This change is especially relevant considering the cases in which tribunals are requested by elderly parents under the 2007 Maintenance and Welfare of Parents and Senior Citizens Act. The Supreme Court's instructions particularly address whether a maintenance clause should be included in gift deeds.

Conclusion

A property gift deed is a crucial tool that can help people claim what is rightfully theirs. Moreover, it makes the transfer of ownership of property quite easy and quick for both parties.