Details of Gift Deed Creation – and procedure in Punjab

Gift Deed Creation and procedure in Punjab

Gift of property is made without any monetary consideration. It is generally made to relatives out of love and affection. It is a transfer of ownership in property from one person to another.

In the recent past, during an interaction with a native from Punjab who was settled in the UK, we realised the complexities that arise while an individual wants to give estate to a child.

Confused by various incomplete sources of information and anxious about the exact legalities involved, he was keen to know the precise legal requirements for this document.

Our lawyers felt we needed to spell out these pointers for other such people too. The same are discussed below:

Meaning of Gift deed:

It is a legal document describing the transfer of property from the donor to the donee without any exchange of money. The donee becomes the absolute owner of the gifted estate. In case of onerous gifts, obligations are also transferred.

What can be gifted:

  • Moveable or immovable property
  • Tangible property
  • Existing Property

Parties in a deed:

  • Donor (the one who transfer property)
  • Donee (one who is the recipient)

Any person who is competent to contract can be a donor. A minor cannot make a gift of his estate.

The process of Creation of Gift Deed:

Act of Gifting:    The Donor must intend to make it voluntarily out of his free will without any monetary consideration.

The donor must be:

competent to make a contract, i.e. gift deed (minor cannot be a donor)
aware of his act and its implications

Acceptance: Donee must accept it during the lifetime of the donor and while the donor is still capable of making a gift.

Acceptance is shown by various acts like taking possession of property or taking possession of the deed. Possession can be actual or constructive. Mere silence also amounts to acceptance where silence signifies assent. A gift without acceptance is not complete.

Registration: Deed for transfer of immovable property has to be registered compulsorily otherwise the transfer of ownership is invalid. It has to be signed by both the parties and attested by witnesses.

Registration fee and Stamp duty have to be paid as per the applicable rates in a particular State.

Moveable estate can be gifted without any deed, but delivery and acceptance are necessary for completing the transaction.

Important points

  • It must mention the details of the donor and donee.
  • Property to be gifted must be described clearly
  • It cannot be revoked unless there is a clause of revocation in the deed itself.

As a special context, we are listing out some considerations for the state of Punjab, since some recent clients were natives of this state.

Process of registration in Punjab

The basic procedure of registration of this deed is the same in every State.

  • Preparing the Deed
  • Signing by Donor and Donee
  • Attestation by witnesses
  • Registration at Registrar’s office

State fixes stamp duty. It is different in different States.

The range of applicable stamp duty in Punjab is 0.5% to 6%.  There will not be any application fee charged in case the property is transferred to any blood relative within the lifetime of the donor. The blood relatives include the mother, father, spouse, son, daughter, brother, sister, grandson and granddaughter.

Role of civil lawyers during property dispute and partition in India

Role of civil lawyers during property dispute and partition in India

According to some civil lawyers property dispute is a common practice in India during the partition of property.

Every household, unfortunately, goes through some or the other property dispute during partition.

Sometimes back we were approached by Mr Vikas regarding a property issue with his brother while partition. Mr Vikas lives abroad while his brother lived in India. Mr Vikas’s brother kept all the good share of land and property to himself and gave all low-value land to Mr Vikas.

The plight of Mr Vikas was genuine, and therefore we took up the case. First, as property lawyers, we had to devolve all the partition done by the brother and then again file for the fresh partition plea.

We did a fresh and complete calculation and evaluation of the property keeping in mind Mr Vikas’s interest on the forefront.

And eventually, we succeeded in making a fair partition where everybody got the equal shares as per their respective rights.

Because property issue is common and the toughest to resolve in India and everywhere else we must be aware and informed of few things:-

What counts as property dispute?

Illegal possession of property:  When there is disagreement regarding the ownership of the property and it is alleged that a property is possessed illegally and is not authorized.

Title disputes: When the registration of a property is challenged.

Rental Disputes: When landlords and tenants dispute regarding possession of the property, rent dues, terms and conditions of the rental agreement.

Other common areas of property litigation are:

  • Land Leases including agricultural land
  • Land Acquisition Cases
  • Partition of Property, Disputes resulting from ancestral and self-earned property

Whom to approach in matters of Property Dispute?

Civil Lawyers.

You must find a civil lawyer for full legal assistance in India. They are specialized in a wide range of areas and provide legal advice and handle cases like:-

  • Ownership/rent recovery
  • Reclamation of land or premises from unlawful occupiers
  • Rent and service restoration charges under long leases
  • Site plan clearance services
  • Tenancy cancellation agreements
  • Rent contract and Security Deposit disputes
  • Applications for relief under lengthy contract agreements with builders
  • Boundary disputes
  • Disputes over financial interest/s in property (commercial or family law bases), Mortgage disputes, Property and Banking disputes
  • Misrepresentation and fraud in property cases
  • Planning consent disputes – Change of Land Use Agreements (CLU)

Civil lawyers for Property disputes contest complex property issues and assist clients in the negotiation and legal drafting of personal, commercial and residential property issues.

Thus they have the experience and expertise to provide clients practical legal advice apart from a complete legal representation, based on the client’s need.