What Is Gift Deed?

A gift deed is a legal document that details the voluntary transfer of a property or any other gift in which the consideration of transaction is not monetary, but is made in return for love and affection. There is a standard way prevalent in India to transfer your property to your loved ones. Although there is no monetary transaction involved in the process, but as per prescribed laws registration of gift deed is mandatory to make the process legally valid.

Is There Any Law Or Provision In Respect Of Gift Deed?

The term ‘Gift’ is defined under Section 122 of the Transfer of Property Act, 188 as :

“Gift is the transfer of certain existing moveable or immoveable property made voluntarily and without consideration, by one person, called the donor, to another, called the donee, and accepted by or on behalf of the donee. Acceptance when to be made.—Such acceptance must be made during the lifetime of the donor and while he is still capable of giving. If the donee dies before acceptance, the gift is void.”

As per Section 123 of the Transfer of Property Act, a gift of immovable property, which is not registered, is bad in law and doesn’t pass any title to the donee. A Mere delivery of possession without any written instrument doesn’t confer any title on done.

As per provisions of Section 17 of the Registration Act, 1908 it is mandatory to get a Gift Deed registered in order to make it legally valid.

How To Get Your Gift Deed Registered?

• 1. As Gift deed is exchange of property out of love and affection between parties, so person while drafting the same need to be sure that deed is drafted as per provisions and accordance with law and one needs to be sure that the transfer of property must be acknowledged by Donne during his lifetime otherwise the exchange of the same will be consider as invalid.
• 2. After the drafting of deed it needs to get it signed by both the parties (both the Donor and the Donee) in presence of 2 witnesses.
• 3. After signing of documents by both the parties and witnesses, parties are required to approach the nearest Sub-registrar Office for getting the deed registered.
• 4. Parties need to pay prescribed registration charges and get it attested to get it registered.

Is Registration Of Gift Deed Is Mandatory?

Although registration of Gift deed for movable goods is not mandatory as per the provisions of the Transfer of Property Act, 1908 but in the eyes of law any Gift Deed, movable or immovable, if contested in court will stand as an upholding or supporting evidence only if it is registered and an unregistered deed as not considered as legally secure.

In contrast, for the transfer of an immovable property the registration of Gift Deed instrument is made compulsory as per the provisions of Chapter 17 (a) of The Registration Act, 1908.

Can Gift Deed Be Made In Favor Oy By a Minor?

Generally a person who owns a property can donate/gift to anyone as per his own will. But in case of Gift Deed, Minor is not eligible to execute Deed as minors are not eligible to contract so cannot transfer the property as gift. But in case of donee being a minor, a natural guardian can accept a gift on his behalf. Guardian acts as a manager of the gifted property till his maturity, and if the gift is onerous or have heavy obligation, the obligation cannot be enforced on donee until he is a minor. Once the donee is an adult, it is his obligation to either accept the burden or return the gift.

Can a Gift Deed Be Revoked By Anyone?

The gifts given by anyone can be revocable or non-revocable as per willingness and requirement of Donor. In case of revocable gift deed, the donor is presumed to make a draft of the deed document and that can be kept by him in his possession until the donor wants to hand it over to the recipient. And during possession of this document the donor has right to revoke the gift deed document despite the fact that the document is complete and is signed and attested by parties as well as witnesses.

But in case of irrevocable gift deed, a document is prepared and signed up by the both the parties and witnesses by following all the legal formalities and requirements and is further handed over to recipient, he immediately becomes the owner of the received gifts and in this case the said gift deed cannot be revoked by Doner. The property gifted by Doner shall no longer be related to Doner and ownership rights get transferred to Donee or recipient. So the whether the Gift deed is revocable or not depends on the will of Doner.