Among many options through which one can transfer property, the most convenient is a gift deed. Through a gift deed, an individual can transfer his property to another person without the involvement of any money transaction. Nevertheless, for the transfer to be considered valid by the authorities, it is essential that the gift deed is registered. However, you need to be aware of what a gift deed is all about if you are planning to transfer your property to another individual through this method. Mumbai is one of the best destinations for real estate investment. You can find some of the best 2 BHK flats on Ghodbunder Road, Thane.
Defining a Gift Deed
Section 122 of the Transfer of the Property Act, 1882, specifically states that an individual can transfer his or her property like a house, villa, etc. by executing a gift deed. The gift deed does not require any money transaction. According to Section 123 of the Transfer of Property Act, an individual has to get the deed registered with the sub-registrar. This is a mandatory process or else you will not be able to transfer the property. The gift deed can be compared with the sale deed wherein all the details of the property as well as the details of the individual transferring the property and the one receiving it are mentioned. A gift deed is also important for the mutation of the property.
Revocation of a Gift Deed
While signing the gift deed, be very careful as there is no provision of having it revoked at a later stage. The only way through which one can revoke the gift deed is if both the parties have signed an agreement for the same in case of a certain event.
Points to note
Though no money transaction is involved in a gift deed, it is mandatory to pay the registration fee and stamp duty. The amount of stamp duty to be paid is determined according to the value of the property. However, the rates of the stamp duty vary from one region to another.
In the case of a minor, the gift needs to be accepted by the guardian as the minor is not permitted by law to accept the gift deed.
The gift deed will only be executed if it is being made voluntary by the owner of the property. And, this should be mentioned in clear terms in the deed. Another prerequisite is that the person who is transferring the property should not be bankrupt or else it would be considered null and void.
A gift deed is an important and mandatory document whether you are planning to transfer a villa or a 2 BHK flat in Thane West in the name of another person. By taking the above-mentioned points into consideration, you will be able to execute a gift deed without any hassles.