What is the Meaning of a Conditional Gift Deed?

Introduction

A deed of gift is executed between the donor and donee for the transfer of movable or immovable property. Can be two types which are

1. Conditional gift deed and
2. Unconditional gift deed.

The gift is transferred during the lifetime of the parties involved and usually is without any consideration. The gift may or may not have any conditions attached to it, and the donor must complete the necessary actions mentioned in the conditions attached to own the property.

What is meant by a Conditional Gift Deed?

A conditional gift deed is prepared when an individual transfers their immovable property to another without consideration. However, they attach certain conditions to be met by the recipient. The condition stated will always coexist with the transfer or gift.

These conditions should be legally acceptable and not immoral because that will make the conditional gift deed void, and the transfer will be terminated.

The donor can either require the donee to do something or to refrain from something on the condition that the donee must oblige.

Essential Elements in a Conditional Gift Deed

• Property transfer: The conditional gift deed is made to transfer a movable or immovable property by the donor who does it voluntarily.
• Condition: The donor attaches a condition with the conditional gift deed that is to be completed and acted upon for fulfillment of the transfer.
• Property details and existence: The property involved should be existing and tangible. The details must be briefly mentioned in the conditional gift deed to avoid future litigations. The donor cannot transfer a future property through a deed of gift as it becomes void.
• Competence: The donor should be of a sane mind and above 18 years of age. The conditional gift deed should be done either in the presence of family members or by taking legal consultancy services to avoid any errors and execute it properly.
• Voluntary transfer: The donor should state in the conditional gift deed that they have chosen to transfer this by their wish and that there was no fraud, forgery, undue influence, or coercion involved. The donor should be a “sui generis.”
• Acceptance: The conditional gift deed may become void if the donor does not accept it in their lifetime. The transfer and approval are made during their lifetime to become legally valid and registered to make it legally enforceable.
• Delivery of possession: The valid conditional gift deed will state the exact day and date when the transfer will be made, and the donee will become the legal owner of the property. This occurs after both have duly signed and registered the necessary documentation by taking legal consultancy services.

Types of Conditional Gifts

There are two types of conditional gift deeds made, which can be effective as per the law provisions if executed correctly. These are as follows:

• Condition precedent gift: In this type of conditional gift deed, the donee must meet the requirements or conditions before accepting the transfer of immovable property from the donor. The conditional gift deed should have a reasonable need that can be achieved to take effect.
• Condition subsequent gift: This type of conditional gift deed requires the donee to follow the conditions after the transfer for the next interval. The gift deed will be revoked in case there is any violation or breach of the agreement.

A Valid Conditional Gift Deed

It is to be noted that not every conditional gift deed is valid or enforceable because there is a regulation in the conditions that are attached. For executing a valid conditional gift deed, one must follow all the legal criteria, such as:

• Reasonable condition: The conditions attached to the conditional gift deed should be reasonable as a basic rule. The donee can have a choice to oblige to the condition or not. The donor cannot state any extreme or immoral conditions against the law. It should not be immoral, harmful, criminal, or vengeful. Any kind of condition that might be like a punishment for the donee is not enforceable by law. It becomes void.
• Ethical and legal: The conditional gift deed should not contain illegal conditions because that can make it invalid. The conditional gift deed should not ask the donee to engage in any criminal or illegal activity, divorce or get married to a said person, change into some religion, or damage public or private properties.
• Clear description: The conditional gift deed must be executed in a clear and precise way. There must be no vague or unclear sentences or conditions attached to a conditional gift deed.

The transfer of property through testamentary is not accepted as a gift by the law, but inter vivo transfer is a gift per The Transfer Of Property Act 1882. The gift becomes invalid when the transferee is not obliging or can follow the attached terms and conditions in the conditional gift deed.

Conclusion

A conditional gift deed can include any type of condition with it, but the only requirement is that the states should be legally and morally correct. The donor can take legal help from a professional to execute the conditional gift deed properly and efficiently.