What is a property gift deed?

A property gift deed is a legal document through which the owner of an immovable property voluntarily transfers ownership to another person (the donee) without any monetary consideration as an act of love, affection, or family planning. A gift deed is irrevocable once executed and registered, and the transfer takes immediate effect.

Essential Elements of a Valid Gift Deed

• Donor: The property owner making the gift must be competent to contract.
• Donee: The recipient of the gift must accept it during the lifetime of the donor.
• Acceptance: The donee must physically accept the gift.
• Delivery of possession: Possession of the property must be handed over or the deed clearly creates that right.
• Voluntary: Gift must be free from coercion, undue influence, or fraud.

Registration Requirement

A gift deed for immovable property must be compulsorily registered under the Registration Act, 1908. An unregistered gift deed for immovable property is void ownership does not transfer without registration.

A property gift deed is one of the most common estate planning and family property transfer tools in India. While tax-efficient within families, it is irrevocable once registered donors should be absolutely certain of their intent before executing and registering a gift deed.