Legal Guide

What are the Different Types Of Gift Deeds?

by Bhavya Choudhary · 3 min read

Type of gift deed

Introduction

  • Property ownerships are transferred by using many types of deeds such as sale deeds, Gift Deed, conveyance deeds, etc.
  • People who want the property to be transferred with immediate action choose a Gift Deed as it ensures instant ownership transfer after registration. Various types of Gift Deeds can be used accordingly.
  • Others opt for a will that comes into action after the testator passes away.
  • A Gift Deed is a written document. It can be used by the donor for various reasons and in different circumstances.
  • The person who gifts is called a “donor,” and the one receiving it is called a “donee.”
  • The property is given as a gift without any compensation in return from the recipient. Various types of Gift Deeds will be mentioned in this blog.

What is a Gift Deed, and who can give a Property?

  • A Gift Deed is a binary legal document that is used as a method to transfer property from one individual to another.
  • It can be any movable property or immovable property. The donor has to clear stamp duty and registration fees to establish a legal value for the Gift Deed.
  • No law makes movable property registration mandatory. But for any immovable asset, the deed of gift is required to be registered with the district sub-registrar with proper drafting and compositions.
  • A gift is valid, legally only if it was made voluntarily without any duress or coercion.

There are certain significant requirements for making a valid Gift Deed. These are as follows:

  • The property should be a registered property under the ownership of the donor. The property should not be joint ownership or ancestral.
  • Existing properties are allowed to be gifted.
  • The parties must be alive during the formation and receiving of gifts. 
  • The donor is solvent and of sound mind.
  • The donor should be above 18 years of age to give their self-acquired property.
  • The guardian of the donee can receive the gift on their behalf in case the donee is under 18 years old or of an unstable mind.
  • It should be drafted by following every regulation and provision of the Registration Act.
  • The deed of the gift must be signed by both parties, and two witnesses are compulsory to attest to the document for registration.

It applies to all the different types of Gift Deeds, and the donor can choose which type of Gift Deed would suit his requirement.

Different types of Gift Deed

There are certain types of Gift Deeds that an individual can choose according to their situation and requirements.

  • Inter Vivos Gift: This type of gift is made when both the donor and donee are alive. It means it is given and received during their lifetime. It is the most common type of Gift Deed.
  • Causa Mortis: The individual who has an intuitive feeling that they are going to pass soon or they know so because of some medical conditions make this type of Gift Deed. It comes into effect after the demise of the property owner. The ownership is transferred directly, as mentioned in the Gift Deed, without any delays.
  • Outright Gift: Any property can be gifted without any restriction or interference through this type of Gift Deed. 
  • Onerous Gift: The type of Gift Deed is not used commonly and is desired as they impose restrictions and obligations regarding the property that is being gifted. The donor may refuse to let the donee rent, lease or sell it under any circumstances. This can hamper the actual meaning of ownership of property.
  • Remuneration Gift: A donor can give this type of Gift Deed to the donee to thank or remunerate them for their services provided in a period. This is to show their gratitude for the help received.
  • Revocable Gift: The donor can attach a termination/revocation clause in this type of Gift Deed where they have the right to take back the property in case of any conflicts or as they wish. This is often performed with mutual consent.

These types of Gift Deeds are used accordingly by the donor of the property. These are registered under the law regulations. A Gift Deed can be challenged when law provisions aren’t followed or performed correctly, so it is highly advised to follow up with legal advice from a property expert lawyer who can draft the deed or review it thoroughly for proper assessment and registration.

Registration of the Gift Deed 

The registration is not compulsory, but it makes the Gift Deed legally valid. It serves as proof of transfer of ownership and can be used as evidence in a court of law.

The different types of Gift Deeds are registered as per Section 17 of The Indian Registration Act 1908 and the Transfer of Property Act.

  • It is drafted on stamp paper whose value is paid by the donor.
  • All the types of Gift Deeds are registered with the sub-registrar at their office. The process requires verification and authentication.
  • Both parties should sign in the presence of two witnesses. The witnesses must also attest to the document in front of the registrar. 
  • Lastly, every type of Gift Deed is signed by the Sub-registrar.

Conclusion

A Gift Deed is the legal proof of ownership of the property received as a gift. There can be liability attached to a Gift Deed which must be fulfilled by the donee. So one must necessarily take legal advice to understand each clause elaborately.

A Gift Deed should be drafted carefully, and the donor must follow every legal regulation while gifting a property. The donee should be aware of every clause while receiving such gifts. Taking legal help from a property expert lawyer will help resolve queries and complications straightforwardly.

Bhavya Choudhary

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Bhavya Choudhary

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