Gift Deed Clauses
A gift deed is a document that transfers the non-movable property rights from one person to another in a written format.
The following are some of the important clauses that need to be included in the Gift Deed:
1. Clause for Consideration
In the Gift Deed, it should be specified that there is no money exchange or any other kind of consideration involved, and the transfer is made out of love and affection. If it is important to how small the consideration is, it will not be treated as a gift.
2. Possession of Property
If you were the titleholder of that immovable property in your possession, that is, the property you want to gift, it would be best. When making a gift, the property must exist and you can not give something that you can probably receive in the future.
3. Free Consent
Any improper influence, coercion, fear, or threat should be free from the transfer. The donation should explicitly state that there is a strong intention for the transferor to do so, and the transfer is voluntary.
4. Property Details
It is important to provide an exhaustive property description, which can specify the address, structure, color, location, place, etc.
5. Details of Donor and Donee
It is important to remember the relationship between donor and donor in order to explain whether they are blood relatives or not. If gifts are made to blood relatives, some state governments even give a concession on stamp duty.
6. Rights and Liabilitiess
It must be declared in the gift deed if any new rights or liabilities are added under this clause. Entitlements can include any privileges relating to further sales or supplementary leases.
7. Rights of Donee
A separate indication of the privileges of Donee produces an attached section of the Gift Deed. This includes the rights of the donor to make improvements to the property, peacefully enjoy the property, and receive rentals or other income from the gifted property.
8. Delivery Clause
A delivery clause, which would confirm the delivery of the possession of the property, generally speaks 'explicitly or implied' about the actions of the transfer.
9. Clauses for Revocation
Avoiding future problems is advisable; it is not a mandate, however. Both the donor and the donor must agree on this condition, which needs to be confirmed, not implied.