Gift Deed
WHAT IS A GIFT DEED?
GIFT DEED
A gift deed is a valid document obtained after registering the transfer of a property to your beneficiary. Under section 122 of the Transfer of Property Act, 1882, you are empowered to transfer any of your Properties to whosoever you deem fit through a gift deed.
With regards to section 17 of the Registration Act of 1908, it is mandatory to register a gift deed with the sub-registrar in order for it to be valid. Conversely, section 123 of the same Act renders an unregistered gift deed as invalid.
In addition, holders of a registered gift deed will be entitled to apply for the mutation of the property. The mutation process allows the transfer of utility connections in favour of the beneficiary.
STEPS INVOLVED IN THE GIFTING PROCESS
In India, the gifting process which will result in a gift deed is broadly categorized into three parts:
- Drafting the Gift Deed: The first stage where a legal professional prepares the draft covering the details of the property and the donee. There must not be any financial transaction.
- Acceptance: A donee is required under law to accept the transferred property during the lifetime of the donor.
- Registration: Under section 123 of the Transfer of Property Act, a gift deed must be duly registered and attested by two witnesses.