Discover the steps and jurisdiction for registering gift deeds of immovable property. This guide provides clarity on the legal formalities, documentation essentials, and registration protocols necessary for effecting property transfers via gift deeds.
Gift deeds are legal documents used to transfer ownership of property from one party to another without any exchange of money. When it comes to immovable property, such as land, buildings, or houses, registering a gift deed becomes essential to ensure its validity and legality. This article explores the process and significance of registering gift deeds of immovable property in India.
What Is a Gift Deed?
A gift deed is a legal instrument used to transfer ownership of property voluntarily and without consideration (money) from one party, known as the donor or giftor, to another, known as the donee or giftee. The gift deed must be executed on non-judicial stamp paper and signed by both the donor and the donee.
What Is an Immovable Property?
Immovable property refers to land, buildings, or any permanent structures attached to the land. In India, immovable property transactions are governed by various laws and regulations, including the Transfer of Property Act, of 1882, and the Registration Act, of 1908.
How to Register Gift Deeds of Immovable Property?
To register a gift deed of immovable property in India, follow these steps:
- Drafting the Gift Deed: The first step is to draft the gift deed, including details of the property, names of the donor and donee, consideration clause (stating that the transfer is without any consideration), and terms and conditions, if any.
- Stamp Duty Payment: Calculate the stamp duty payable on the gift deed based on the value of the property and the applicable rates in the state where the property is located. Purchase non-judicial stamp paper of the requisite value.
- Execution of Gift Deed: Both the donor and the donee must sign the gift deed in the presence of at least two witnesses. The witnesses must also sign the deed, acknowledging the execution.
- Registration: Visit the Sub-Registrar’s Office within whose jurisdiction the property is located to register the gift deed. Submit the original gift deed along with the required supporting documents.
- Payment of Registration Fees: Pay the registration fees, which are a percentage of the property’s value, as prescribed by the state government.
- Verification and Recordation: The Sub-Registrar will verify the documents, record the details in the Register of Documents, and assign a unique registration number to the gift deed.
- Issuance of Certified Copies: Once registered, the Sub-Registrar will return the original gift deed to the donor or donee and issue certified copies for their records.
Where to Register Gift Deeds of Immovable Property?
Gift deeds of immovable property must be registered at the office of the Sub-Registrar of Assurances within whose jurisdiction the property is situated. Each district has several Sub-Registrar offices where property transactions are registered.
Importance of Registration of Immovable Property
Registering a gift deed of immovable property offers several benefits:
- Legal Validity: A registered gift deed is considered legally valid and enforceable in a court of law.
- Title Proof: Registration serves as conclusive proof of ownership and title of the property.
- Prevention of Disputes: Registration helps prevent disputes and legal challenges regarding the ownership of the property.
- Marketability: A registered property is more marketable and can be easily sold or transferred in the future.
- Tax Implications: Registration may have tax implications, such as stamp duty and registration fees, which must be paid to the government.
Documentation Essentials
- Drafting the Gift Deed: The gift deed must be drafted carefully, clearly stating the intention to gift the property, details of the property being transferred, names of the donor (gift) and donee (giftee), their relationship, and any terms and conditions attached to the gift.
- Non-Judicial Stamp Paper: The gift deed must be executed on non-judicial stamp paper of appropriate value, as prescribed by the Stamp Act applicable in the state where the property is situated. The stamp duty payable depends on the value of the property.
- Execution by Donor and Donee: Both the donor and the donee must sign the gift deed in the presence of at least two witnesses. The witnesses must also sign the deed as proof of its execution.
- Consideration Clause: The gift deed should mention that the transfer is being made without any consideration (money) and is a voluntary act of the donor.
- Title Documents: Copies of the title documents of the property, such as sale deed, partition deed, or inheritance documents, must be attached to the gift deed to establish the donor’s title and ownership.
- Identity and Address Proof: The donor and donee must provide their identity and address proof, such as an Aadhaar card, PAN card, passport, or voter ID card, along with the gift deed.
- No Objection Certificate (NOC): If the property is mortgaged or subject to any encumbrances, a no objection certificate from the mortgage lender or concerned authorities may be required.
The Takeaway
In conclusion, registering gift deeds of immovable property is a crucial step to ensure the legality, validity, and enforceability of property transactions in India. By following the prescribed procedures and registering the gift deed at the appropriate Sub-Registrar’s Office, both the donor and the donee can safeguard their interests and enjoy peace of mind regarding their property ownership.
