When it comes to transferring a property within family members or giving it away as a gift to another person, it is necessary to legally register the property in the donee’s name (receiver of the property) through the gift deed process. The gift transfer is invalid without legal documentation of the deed, which is different from the usual registration process. Here is some info on how to transfer a gift property legally to family members or any institution.
A gift deed is a legal document used to voluntarily transfer a property as a gift from the donor to a donee without the exchange of money. The gift can be transferred to a person or an institution which should be accepted by the donee within the lifetime of the donor. Only an immovable property that exists in the present can be transferred. The gift should also be tangible.
Eligibility for Gift Deed Transfer
To make a gift transfer, the donor should be competent to contract which implies that minor individuals cannot gift a property. However a minor can accept the gift with a natural guardian as a nominee, who will act as a manager of the property till the donee becomes an adult. The donee should be alive to receive it otherwise the gift deed becomes void.
Process of Gift Transfer
The legal process of gift transfer involves the following steps:
Gift Deed Drafting
The gift deed is a legal document between the donor and the receiver which should be prepared with the help of an attorney. The agreement should contain the details of the transferring property and to whom it should be transferred. The gift should be given voluntarily without any compulsion.
As per the legal requirement, the receiver should accept the gift during the lifetime of the donor. The gift transfer is valid only if the donee accepts the gift property which is validated by taking possession of it.
Gift Deed Registration
The registration process takes place according to the registration act of 1908. The title transfer can be performed only on the registered property. At least two witnesses should attest in the gift deed agreement. Usually the number of witnesses changes from place to place. After the payment of stamp duty and transfer duty charges, the property can be registered. The stamp duty differs from one state to another. Once the registration is over, the title can be changed.
Thus the property can be transferred from one person to another through the gift deed agreement. Gift Deed is not a Will. A Gift deed is different from a will in many ways which are as follows:
A gift deed can be executed during the donor’s lifetime while the will is applicable only after the death of the donor. As the gift deed is registered to a particular donee, the property is litigation free whereas the will is prone to litigations among the family members. The gift deed registration involves stamp duty and registration charges and once the registration is over, the transfer cannot be revoked.
If you are expecting a gift deed or planning to transfer a gift property to someone, it is better to get legal opinion and assistance.