What is a legal gift deed in India?
When a person wishes to give money or property to another, an agreement known as a gift agreement is drafted. Assets including land and property can be gifted willfully by drafting a legal gift deed, from the owner to the donee.
A gift deed in India permits the donor to gift the property to anybody and evades any future debate emerging out of progression or legacy claims. Unlike a will, a gift agreement transfers property immediately and does not require you to go to a court to have it executed, saving you time.
How to officially draft a gift deed in India?
The following information must be included in a gift agreement drafted in India:
- When and where the gift agreement should be signed.
- Relevant information about the donor and donee, including their names, addresses, relationships, dates of birth, and signatures, on the gift agreement.
- Complete information about the property for which a gift agreement is being drafted.
- Two people who will testify about the gift agreement and sign it.
- After making the required payment, the gift agreement must be printed on stamp paper and registered at the registrar’s or sub-registrar’s office, depending on the value determined by the state government.
Clauses added in an official gift deed in India
Important clauses to be included in an official gift deed are:
Inappropriate use of money:
This consideration clause must be included in the gift agreement. It is necessary to state that no money is being exchanged and that the gift deed was made solely out of love and affection, not out of financial gain or coercion.
You are the proprietor of your property when you gift:
Just the proprietor can gift a property. You cannot give a property as a gift deed to someone else, even in anticipation, if you are not the owner (title holder).
Description of the house:
Everything about the property, including its structure, type, address, location, and other details, must be included in the format of the property gift deed.
Connection between the donor and the donee:
A reduction in stamp duty may be made available by some state governments if the donor and donee are blood relatives. Even if nothing else is done, it is essential to establish the donor’s relationship through the property gift deed format.
On the off chance that there are privileges or liabilities appended to the gift. For example, whether the donee can sell or rent the property, and so on. The gift agreement should include such clauses.
Clause of delivery:
This on the gift deed specifies the communicated or inferred activity of conveyance of ownership of the property.
Abandonment of the gift:
The donor can also make it clear if they want the donee to follow a revocation clause in the gift deed. Both, the benefactor and donee, should settle on this gift agreement provision.
Can a gift deed in India be revoked?
Legally, when property is gifted, it becomes the donee’s and cannot be easily taken back. However, under certain conditions. A gift agreement may be revoked in accordance with Section 126 of the Transfer of Property Act of 1882:
- Assuming that the gift agreement was made because of intimidation or misrepresentation.
- Assuming it is resolved that the grounds of gift agreement were unethical, ill-conceived or inexcusable.
- Assuming it was settled upon from the outset that the gift agreement is revocable in specific situations.
In such instances, the donor’s legal heirs can proceed with the gift deed. Revocation even in the event of his death. Further, the norms related to gift agreement. And its drafting go longer in line and discussing it here altogether is not possible. At times the specifications can only be described when a specific situation takes place. In case you wish to know more about a will deed in India or draft one for yourself. You may consider online lawyer consultation at Insaaf99 at the comfort of your home.