Overview & Concept

What are the docs required for drafting a Gift Deed ?

After making sure that your Gift Deed is signed, attested by witnesses and you have paid the stamp duty and registration charges as per your state regulations. You need to carry a few other documents like – 

• Original Gift Deed
• ID Proofs, like Driver License, Passport, etc
• PAN Card
• Aadhar Card
• A document like Sale deed to prove donor title to the Property 
• Other Agreements which you might have entered into in relation to property

The list is not exhaustive, you might need other documents like certificates relating to the value of your property depending on your state.

What are the Key Features for Gift Deed ?

• Consideration Clause – It should be clearly mentioned in the Gift Deed that the transfer is being made out of love and affection and there is no exchange of money or any other type of consideration is involved. It is irrelevant how small the consideration is, it would not be considered as a gift.
• Possession of Property – The property you want to gift, must be in your possession i.e. you must be the titleholder of that immovable property. While making a gift, the property must be in existence, you cannot gift something that you might get in the future.
• Free Will – The transfer should be free from any type of coercion, undue influence, threat or fear. The gift should clearly state that the transfer is voluntary and that the transferor has a clear intention of doing so.
• Information about Property – A detailed description of the property is a must. It should clearly specify the structure, address, color, area, location, etc.
• About Donor and Donee – The relationship between donor and donee is important as to whether they are blood relatives or not. Some state governments also offer a concession on stamp duty if gifts are made to blood relatives.
• Rights and Liabilities – Under this clause, if any additional rights or liabilities are attached to the gift shall be mentioned. For example, any rights relating to the further sale, or leasing it further.
• Rights of Donee – A clear mention of Donee rights forms an inseparable part of the Gift Deed. It includes the done rights to enjoy the property peacefully, to make changes to the property, receive rents or any profits that might arise from that property. 
• Delivery– A delivery clause talks about the action (express or implied) which would confirm the delivery of the possession of the property.
• Revocation Clause – Though not mandatory, but advisable. It will help in avoiding future complications. It has to be expressly mentioned, not implied. And donor and done both have to agree on this clause.