Giving a property as a gift!
You will go to the end of the world to make someone you love happy. What if the gift is a key to living in an apartment? Imagine a day you lend colours to the dreams of your loved one with a glad news—here is your gift. Capture the reactions of your loved one at the sight of a splendid, stylish and serene home. However, when you offer property as a gift, you might have questions popping up in your mind.
Gift Deed and Stamp Duty
A gift deed is an important part of giving someone property. This formal paper shows how ownership goes from the person giving the property to the person getting the property. The gift deed should be written on paper with a non-judicial stamp of the right value. Stamp tax rates depend on where the property is and how much it is worth. These rates must be followed for the move to be acceptable.
Registration of Gift Deed
The gift deed must be entered at the sub-registrar office for it to be official. During the filing process, both the giver and the recipient must be present, and the act must also be signed in front of two witnesses. The filing process makes sure that the move is legal and looks out for both parties’ best interests.
A gift deed in Kerala is legally binding since it symbolizes the transfer of property from one person to another. Both the giver and the receiver have obligations under this instrument. In Kerala, there are certain requirements that must be followed in order for the stamp duty linked with a gift deed to be valid. Let’s have a look at the most important factors:
Initiating a gift deed in the name of a third party requires careful consideration because of the potential legal consequences.
Gifting property requires the giver to have legal ownership rights to the asset being transferred.
While both moveable and immovable property may be gifted, a gift deed must be performed for immovable property such as real estate in order to avoid incurring gift stamp tax in Kerala.
The Indian Contracts Act of 1872 states that no minor or anybody considered a minor may be the direct beneficiary of a gift deed.
If a minor is engaged in the gift deed procedure, the deed must be performed in the minor’s legal guardian’s name.
A gift deed must embody the notion of free consent, as described by the Indian Contracts Act, which is a basic value.
A gift deed’s legal standing might be in jeopardy if it were created under undue influence. The acceptance of the property by the receiver during the donor’s lifetime is necessary for the validity of a gift deed.
Gift deeds are contracts in which the activities of both the donor and the receiver are of equal value since they provide the groundwork for the relationship between the parties.
Due Diligence
Prior to giving a home as a gift, it’s important to do your research. This means checking the property’s ownership, title, and any liens or bills that are on it. To avoid problems in the future, it is important to make sure the heading is clear.
Future Considerations
When giving away property, it’s smart to think about what could happen in the future. Even though a gift deed is formally binding, it is important for the giver and the donee to get along and talk to each other. Also, it’s a good idea to talk to a lawyer to find out how the gift will affect things like inheritance and property rights.
