What Is Draft of Deed of Gift of Immovable Property?
Draft of Deed of Gift of Immovable Property -A gift deed is a legal document that describes the voluntary transfer of a gift from the donor (owner of the property) to the donee (receiver of the gift) without any monetary favor in return. A Draft of Deed of Gift of Immovable Property involves the gifting of some immovable property like a house. A gift deed describes every detail of the transaction as necessary by law. It is an important document, especially while gifting immovable property since it records the act of giving a gift. It creates a valid documentary record. Both for the donor and donee, a gift deed ensures proof of such transfer and thus avoids the confusion that may arise in the future.
Gifts are governed by the Transfer of Property Act, of 1882. A gift can be given of any property –
As per Sec 122, for a Gift to be valid –
- The property that is to be gifted must be in existence at the time of making the gift (for example, future expected crop production cannot be gifted)
- The donor must be the lawful owner of the property
- Must be voluntary
- Must be without consideration
- Must be accepted by the donee
As per S. 123, if the gift is of immovable property, the gift deed must be registered and attested.
The gift of movable property can be effected by registration or by delivery of the property.
Clauses in a Gift Deed
- Details of Donor and Donee – The gift deed should mention the name, address and relationship between the donor and donee.
- Consideration – The gift deed should mention that the donor is transferring the gift property out of love and affection towards the donee, and there is no consideration of any other type involved in the transfer.
- Voluntary Transfer – The gift deed should mention that the donor is voluntarily and freely transferring the ownership of the gift property to the donee. The transfer shall be free of any fear, coercion or threat.
- Ownership of Property – The gift deed should mention that the property is in existence and the donor is the absolute owner of the gift property, and the donor has delivered the possession of the gift property to the donee.
- Property Details – The gift deed should specify the detailed description of the gift property.
- Rights of the Donee – The gift deed should mention the rights of the donee. It includes the rights of the donee to enjoy the property peacefully and sell or mortgage or lease the property.
- Acceptance by Donee – The gift deed should mention that the donee accepts the gift of the property.
- Delivery – The gift deed should mention the intention of delivering the possession of the gift property, expressly or impliedly.
- Witnesses – The gift deed should mention the name and address of the witnesses. It should be signed and attested by at least two witnesses mandatorily.
- Revocation – The gift deed need not have a revocation clause of the gift property, but it is advisable to avoid any conflict in the future.
Need For Draft of Deed of Gift of Immovable Property Draft Format
The Draft of Deed of Gift of Immovable Property is an instrument through which the immovable or movable property owner transfers his/her property to another person without consideration as a gift. The person gifting his/her property is called the donor, and the person accepting the gift is the donee. The donor must voluntarily gift the property to the donee without considering the gift to be valid under the Act. The donee should accept the gift within the lifetime of the donor for the gift to be legally valid.
The gift of immovable property will be effective when the gift deed is registered with the appropriate Registrar or Sub-Registrar. The gift of movable property is effective when the gift deed is registered or by delivery of the property. When the gift deed is registered, the transfer of the property from the donor to the donee takes place immediately, and the parties need not go to court for its execution. Registration of the gift deed is mandatory when the donor wishes to gift immovable property to the donee. A gift deed must be executed out of love and affection towards the donee without any consideration in return.
DRAFT OF DEED OF GIFT OF IMMOVABLE PROPERTY
This Deed Of Gift is made at …….. this …….. day of.. ….. between Mr. A of ……. hereinafter referred to as ‘the Donor’ of the One Part and Mr. B of ……. hereinafter referred to as ‘the DONEE’, of the Other Part.
WHEREAS the Donor is seized and possessed of the land and premises situated at ……… and more particularly described in the Schedule hereunder written.
AND WHEREAS the DONEE is related to the Donor as ……..
AND WHEREAS the Donor desires to grant the said land and premises to the DONEE as gift in consideration of natural love and affection as hereinafter mentioned ‘
AND WHEREAS the DONEE has agreed to accept the gift as is evidenced by his executing these presents.
AND WHEREAS the market value of the said property his estimated to be Rs …..
NOW, this Deed Witnesseth that the Donor without any monetary consideration and in consideration of natural love and affection, which the Donor bears to the DONEE, doth hereby grant and transfer by way of gift the said land and premises situated at ….. and more particularly described in the Schedule hereunder written together with all and singular the buildings, and structures. thereon and all the things permanently attached thereto or standing thereon and all the liberties, privileges casements and advantages appurtenant thereto And all the estate, right, title, interest use, Inheritance, possession. benefit, claims and demand whatsoever of the Donor To Have And To Hold the same unto and to the use of the DONEE absolutely but subject to the payment of all taxes, rates, assessments, dues and duties now and hereafter chargeable thereon to the Government or Municipality or other Local Authority.
AND he the Donor doth hereby covenants with the DONEE;
a. That the Donor now has in himself, good right, full power and absolute authority to grant the said piece of land and other the premises hereby granted as gift in the manner aforesaid.
b. The DONEE may at all times hereafter peaceably and quietly enter upon have occupy, possess and enjoy the said piece of land and premises and receive the rents, Issues, and profits and rents thereof and every part thereof to and for his own use and benefit without any suit, lawful eviction, interruption, claim or demand whatsoever from or by the Donor or his heirs, executors, administrators and assigns or any person or persons lawfully claiming or to claim by, from, under or in trust for the Donor.
c.That the said land and premises are free and clear and freely and clearly and absolutely and forever released and discharged or otherwise by the Donor and well and sufficiently saved, kept harmless and Indemnified of and from and against all former and other estate, titles, charges and encumbrances whatsoever, had made, executed, occasioned or suffered by the Donor or by any other person or persons lawfully claiming or to claim by,from, under or in trust for the Donor.
d.And Further that the Donor and all persons having or lawfully claiming any estate or Interest whatsoever to the said land and premises or any part thereof from under or in trust for the Donor or his heirs, executors, administrators and assigns or any of them shall and will from time to time and at all times hereafter at the request and cost of the DONEE do and execute or cause to be done and executed all such further and other acts, deeds, things, conveyances and assurances in law whatsoever for better and more perfectly assuring the said land and premises and every part thereof unto and to the use of the DONEE in the manner aforesaid as by the DONEE, his heirs, executors, administrators and assigns or counsel in law shall be reasonably required.
IN WITNESS,WHEROF, the Donor as well as the DONEE (by way of acceptance of the said gift) have put their respective hands the day and year first hereinabove written.
THE SCHEDULE ABOVE REFERRED TO
Signed and Delivered by the withinnamed Donor …….. in the presence of …….
Signed by within named DONEE …….. In the presence of …….
1……………
2……………
Draft of Deed of Gift of Moveable Property
I, Mr …………. residing at ………… do hereby make a gift of the ornaments and jewellery specified in the schedule hereinunder written to my daughter Miss ………… in consideration of natural love and affection on the occasion of her marriage.
SCHEDULE
SIGNED
DONOR
Witnesses.
1………….
2………….
Accepted
DONEE
Documents Required
No specific documents are required in order to draft and execute a gift deed. However, ID proofs of the parties in order to confirm the names and permanent addresses of the donor and donee should be scrutinised. Documents evidencing clear title of the property/house of the donor in question could also be examined as per the facts and circumstances of each case.
Procedure
A gift deed for an immovable or movable property shall be drafted with the help of a lawyer. Gifting is a voluntary action and the gift deed should mention that the donor is gifting such property in question without any coercion or force and by his/her own choice. Acceptance of the donee to receive such gift should also be mentioned in the deed – by way of donee’s signature. A gift deed of an immovable or movable property is to be registered under the Transfer of Property Act if the law mandates so – depending upon the property involved. If not properly stamped/registered, such transfer would be rendered as invalid. Stamp duty shall also be paid as per the value of the gift.
Legal Considerations
The gift of movable or immovable property must be in accordance with section 122 of the Transfer of Property Act, 1882. A gift deed for an immovable or movable property must be registered if required as per the rules and regulations and must also be properly stamped. The deed should also declare that the donor is not bankrupt (i.e. solvent), the gift is being made without any consideration in return and that the donor is giving the gift by his/her own choice without any force or coercion.
A minor cannot enter into a valid contract in India and hence cannot make a valid gift deed., although, a guardian can accept the gift on behalf of a minor. A gift once made cannot be revoked. It is also important to know that gifts made to relatives defined under the Income Tax Act are exempt from tax in the hands of the donee.
