Benevolence Bestowed Upon Thee
What is it that appeals to you the most during the holiday season?? Food… meet-ups…….gifts…..Gifts!! The thing that most of you get excited about (regardless of your age) would be the gifts, the mystery of what lies beneath the colourful packing as you slowly and carefully unwrap the packing would give any decent whodunnit a run for its money. And what about those of you who play Santa and bestowed gifts upon whomsoever you visited, it was a special feeling to see their eyes glimmer with excitement wasn’t it?? These are but small tokens of our love and affection but what of those who like to gift it the Ambani way…. like say, a new villa or a prime parcel of land? Would they too be able to gift it just as simply or would they be required to follow some legal procedures? After all such things require a whole set of documentation when one plans to sell it so wouldn’t it be natural for a similar stack of documents to be present when you gift one?? In order to gift immoveable property the transfer needs to be given effect to vide a registered document signed by (or on behalf of) the donor and needs to be attested by at least two witnesses. This document that needs to be signed is technically referred to as the ‘gift deed’. Before we go into what constitutes a gift deed let us first see what a ‘gift’ means, the Transfer of Property Act, 1882 defines gift as,
“the transfer of certain existing movable or immovable property made voluntarily and without consideration, by one person, called the donor, to another, called the donee, and accepted by or on behalf of the donee. Such acceptance must be made during the life time of the donor and while he is still capable of giving. If the donee dies before acceptance, this gift is void.”
At this stage it is pertinent to note that in India gifts are not only regulated by the Transfer of Property Act alone but also by personal law, usages and customs. Therefore the provisions of Hindu Law and Muslim Law must also be taken into consideration.
The various types of gift deeds are as follows,
- Deed of gift for love and affection.
- Deed of gift of property for particular purpose.
- Deed of gift of land in trust to charity.
- Grant of land for building a temple.
- Memorandum of gift of movables.
- Gift of business goodwill.
- Deed of gift of immovable property in favour of one of the sons of the donor.
- Memorandum of a completed verbal gift in favour of the sons of the donor.
Although there are various types of gift deeds some of the general points that need to be covered are enumerated below.
- Name and address of donor and donee.
- Date of which the deed is affected.
- The boundaries of the property being gifted.
- The fact that the donor has a clear title to the property in question.
- There being no consideration the quantum of consideration need not be mentioned however in general practice terms such as “out of natural love and affection” (in case of relatives) or “consideration of esteem and regard”(for gifts in favour of a person for whom the donor holds great regard) are used.
All this can be of great use to you if and when you think of gifting an immoveable property to someone.