A gift (called Hiba in Islamic Law) is the transfer of property made immediately, and without any exchange or payment of consideration (price), by one person to another and accepted by the later
Gift Deed is a registered legal document in writing which transfer the ownership of the property voluntary without any exchange of money
It describes voluntary transfer of gift from donor (owner of property) to donee (receiver of gift) without any exchange of money. A common way to transfer your property to your relative or loved ones is by executing a gift deed in favor of the donee. It is important to register the gift deed in concerned sub-registrar even though there is no monetary transaction involved in the gifting process. The registration will make the entire process valid.
Transfer of Property Act, 1882, you are empowered to transfer any of your Properties to whosoever you deem fit through a gift deed. Instead of a sale consideration in a sale deed, the gift deed actually transfers the entire ownership to the beneficiary and doesn’t involve any financial transactions.
Who can make a Gift?
- A gift of property can be made by any adult person (over 18 years of age) who is of sound mind.
- Males and females, both can make a gift whereas a child cannot make a gift.
- Both Muslims and non-Muslims can make a gift.
- Legal guardians can also make a gift on behalf of the person to whom he/she is a guardian (i.e. child or insane) if he/she is so empowered by the Guardian Court. However, it is better that such a guardian shall avoid making such gifts unless absolutely necessary in the interest of the child or the insane. unless absolutely necessary in the interest of the child or the insane.
To whom can gift can be made?
A gift of a property can be made in favour of a natural person (human being) or a legal person, such as a company, trust etc.
Donor's rights after gifting property
- A donor loses all proprietary rights in the gifted property after its acceptance by the donee and transfer of possession.
- It is essential for the validity of a gift that the donor should immediately divest himself of all ownership, rights and dominions over the gifted property.
- When I make a gift of a property, I will completely divest myself from all rights over such property and I will have no right on the gifted property unless I have a limited right to revoke the gift.
Registration of a Gift Deed
- A gift can be made verbally but it is always better to write it down.
- If the gift is reduced to writing in the form of a gift deed, then it is compulsorily registerable under the Registration Act, 1908.
- If possible, the gift shall follow mutation in the revenue record