Gift Deed Document
A gift deed is a type of document that allowsa person (receiver)to own or obtain a property or financial gain or simply money, in this case, “as a gift" from another person who is already the owner of that property or money.The right to ownership of the given property is transferred under the gift deed without any obligation to pay or refund to the giver of the gift.A gift deed is a legal binding document that is a voluntary transfer of Gift from the property owner (known as DONOR) to the Gift recipient (known as DONEE) without any money exchange. Itis therefore a legal contract that transfers the property ownership (real estate) from one person to another. The donor signs the gift deed and is attested by two witnesses. The duty charges for stamps may vary from state to state, which must be charged according to property value.
The Key Features of Gift Deed
- This requires the specification that the receiver does not need to do any work in order to obtain ownership of the gifts received.
- The gift deed is based on the idea that the giver does the gift deed out of love for the recipient who is entitled to receive the gift.
- The one who decides to do the gift deed to transfer property ownership or cash to the receiver is considered the donor.
- Although the donor may own 100% interest in the property he wishes to give or pass in the recipient's name.
- To own a legal document against the transaction, it is not enough to sign the gift deed document only, apart from signingthe form; the donor must also have the document witnessed.
- The number of witnesses signing up for verification of the document can vary.
- The witnesses included in this gift deed document are disintegrated parties, implying that they are not entitled to guarantee, gain from the transfer, or suffer any loss through this gift deed of transfer of property or assets.
The Procedure of Gift Deed Documentation
- A well competent attorney from our team will contact you to explain you about the whole process. He will also understand the need of Gift Deed in your case.
- Once the purposes of the same are clear, the attorney shall draw up a sample Gift Deed accordingly.
- The whole process takes between 3-4 working days.
Registration of Gift Deed to make it valid
A gift deed is the transfer of property made intentionally from one person to another. Two people are involved in this property exchange:-
- Donor - The person who transfers the property.
- Donee - The person to whom the property is transferred.
The donee should acknowledge the asset, and he should acknowledge it in the donor's lifetime. Property exchange can go in vain if the donee expires before the gift is accepted. This means that the exchange of gifts will only be valid if the donee accepts the gift in the donor's lifetime.
The Revocation of the Gift Deed
The gifts given however can be of two types: revocable and non-revocable. In the case of a revocable gift, the donor is to make a draft document which may be kept in his possession by the donor until the donor thinks that the time is right for the recipient to receive the gift.And during this period, if the donor wishes to revoke the gift document, he has the option to choose to do so, despite the fact that the document is fully-fledged along with the signs of the witnesses concerned. There is no need to do the final act of transferring the property or money to the receiver at any expense.
Irrevocable Gift Deed
Where an irrevocable gift deed is made up into a final prepared document and signed by the witnesses in compliance with all legal formalities and conditions, and once an irrevocable gift deed is made and issued to the respective recipient, the recipient shall immediately become the holder of the gifts received.So this form of gift deed, as the name suggests, is irrevocable and cannot be reversed by the donor. Property and money transfer will no longer be available for recovery.
Therefore, when a person decides to make a gift deed, he or she may choose or determine whether the gift deed should be revocable or irrevocable in nature.The execution of the gift deed is in the interest of the donor and the beneficiary, and is also a guarantee by the recipient that the appropriate property or money obtained from the donor has been transferred.