What is a gift deed?
A gift deed is an agreement that is used, when a person wishes to gift his property or money to someone else. A moveable or immovable property can be gifted voluntarily using gift deed, from the donor to the donee. A gift deed allows the property owner to gift the property to anyone and avoids any future dispute arising out of succession or inheritance claims. A registered gift deed is also evidence in itself and unlike in the case of a will, the transfer of property is instant and you will not be required to go to the court of law for execution of gift deed and hence, deed of gift also saves time.
Gift deed: What gifts have to be in a gift deed format?
A movable property, or immovable property, or an existing property that is transferable, can be gifted and require a gift deed. Having a registered gift deed, will help you avoid any litigation that comes up thereafter.
Gift deed: Important clauses to mention
Here are some important things that should be mentioned in the gift deed format.
There’s no money or force involved
Make sure that you add this consideration clause to the gift deed. It must be indicated that there is no exchange of money and that the gift deed is made solely out of love and affection and not due to money or coercion.
You are the owner of your property when you gift
Only the owner can gift a property. If you are not the owner (title holder) of the property, you cannot give a property as gift deed it to someone else, even in anticipation.
Describe the property
All information pertaining to the property, such as the structure, type of property, address, area, location, etc., must be mentioned in the property gift deed format.
Relationship between the donor and the donee
If the donor and donee are blood relatives, some state governments may offer a concession on stamp duty. Even otherwise, it is important to establish the relationship between the donor and done in the property gift deed format.
Mention liabilities
If there are rights or liabilities attached to the gift, such as whether the donee can sell or lease the property, etc., such clauses should be mentioned in the gift deed.
Delivery clause
This on the gift deed mentions the expressed or implied action of delivery of possession of the property.
Revocation of the gift
The donor can also mention clearly if he/she wants a revocation clause to be adhered to the gift deed by the donee. Both, the donor and donee, must agree on this gift deed clause.