What is a Gift Deed?

A gift deed is a legally binding document, and within it, the donor (the person giving the gift) voluntarily transfers a gift to the donee (the recipient) without anyone considering money. The gift must be made out of love as well as of affection. During the donor’s lifetime, the donee must accept it.

Key Elements of a Valid Gift Deed

For a gift deed to be legally valid under Indian law, it must fulfill the following conditions:

1. Voluntary Transfer: The donor must willingly gift the property without coercion, fraud, or undue influence.
2. Existing Property: The gift must be of a property that already exists. Future property or assets cannot be gifted.
3. Consideration: No money or any other compensation must be involved in the transfer.
4. Acceptance by Donee: The donee must accept the gift during the lifetime of the donor.
5. Registration: For immovable property, the gift deed must be registered under Section 17 of the Registration Act, 1908.
6. Delivery of Possession: There must be an actual or symbolic transfer of possession.

Types of Properties That Can Be Gifted

• Immovable Property: Land, residential flats, buildings, etc.
• Movable Property: Jewelry, shares, vehicles, art, etc

Contents of a Gift Deed Document

A properly drafted gift deed should include:

• Full details of the donor and donee
• Complete description of the gifted property
• Declaration of voluntary nature of the gift
• Details of relationship between donor and donee
• Recital of acceptance by donee
• Signatures of both parties and two witnesses
• Attestation and stamp duty details

It is always recommended to have the gift deed drafted by a qualified advocate to avoid future disputes.

Procedure for Executing a Gift Deed

Here is a step-by-step process for executing a legally enforceable gift deed:

1. Drafting the Gift Deed: The gift deed must be drafted clearly, stating details of the donor, donee, property, and relationship between the parties.
2. Stamp Duty Payment: The applicable stamp duty differs from state to state. It must be paid before or at the time of registration.
3. Registration at Sub-Registrar Office: The donor and donee must appear before the sub-registrar to register the deed, along with witnesses.
4. Acceptance of the Gift: The donee must formally accept the gift to complete the process.

Stamp Duty and Registration Charges

Stamp duty and Registration fees varies depending on:

• The state where the property is located
• Relationship between donor and donee
• Type of property (movable/immovable, agricultural/residential)

Can a Gift Deed Be Revoked or Cancelled?

Under normal circumstances, a gift deed is irrevocable once executed and registered. However, cancellation is possible under:

1. Mutual Agreement: If both parties agree, the gift deed can be revoked through another registered document.
2. Legal Grounds:
   • Fraud or misrepresentation
   • Lack of free consent
   • Non-acceptance by donee

A gift deed cannot be cancelled unilaterally without legal justification.

Common Mistakes to Avoid in Gift Deeds

• Not registering the deed (for immovable property)
• Not mentioning acceptance by the donee
• Failing to calculate correct stamp duty
• Drafting the deed without legal assistance
• Attempting to gift property with unclear or disputed title

Our Legal Services for Gift Deed Execution

At NYAYA SETU LEGAL ASSOCIATION we provide end-to-end legal support for executing gift deeds efficiently and lawfully:

• Custom Drafting of Gift Deed tailored to your situation
• Property Verification and title check
• Stamp Duty Consultation and calculation
• Representation at Sub-Registrar Office
• Post-Registration Legal Advice for property succession