Meaning of Gift Deed
A gift deed is a legal document. It describes the transfer of moveable or immovable property. It is made voluntarily by the owner without any exchange of money. Both moveable and immovable properties come under the ambit of a gift deed. There is a prescribed format for gift deed registration.
What can be gifted?
- A movable or immovable property.
- It should be tangible property.
- Must have transferability.
- Moreover, the gifted property must be there in the present. Hence, it should not be a property in the future.
Benefits of a gift deed
- Records the transfer of the property to the receiver.
- Has evidentiary value and acts as legal proof.
- Provides legal protection in case of any future disputes.
Documents required for Property Gift Deed registration
Property Gift Deed Registration requires the following documents:
- The original Gift deed.
- The original sale deed of the property.
- Encumbrance certificate.
- Certified ready reckoner value.
- Pan card of both parties (execution purposes).
- Two different witnesses at the execution period.
- Any other document required by the State government.
Charges for Gift Deed Registration
You need to pay the following charges for gift deed registration in India:
- In case a gift is made to a family member – Rs. 200/-
- If made to anyone else – 5% of market value on immovable property.
Place of registration:
Generally, at the nearest Sub Registrar office to the immovable property.
Is it compulsory to register a gift deed?
Yes – For immovable property
No – Movable property
Exceptions to gift deed
Firstly, Minors are an exception to the gift deed. For instance, a legal guardian may register a deed on behalf of a minor. In case a gift is burdensome the minor has two options that are to either bear the burden or return the gift upon him attaining the age of majority.
Validity of an orally made gift
Above all, to validate an immovable property gift, the law accepts only registered deeds backed by legal paperwork. However, an expert is a best-suited connection to get your gift deed registered with a proper format and process.
Consequently, for your gift deed registration, you must consult an expert in legal documentation who can get your work done.