Ved Legal comprises of a dedicated team of experts. We offer a multitude of services in the areas of Co-operative and Property law, but we are best known for our expertise in the Co-operative field i.e. Society Formation/Registration as well as Deemed Conveyance, Conveyance thereof. We have vast experience in representing our clients in matters of Society Formation, Deemed Conveyance, and Recovery. We also undertake different types of property matters including Conveyances, Agreements (Rent, Lease and Leave & Licenses), Partnership Firms & Its Registration, Wills, Probates, Succession, Contracts etc..
There are various ways through which you can transfer a property that you own. It could be by way of sale, Will or gift. A commonly used method, especially when transferring to a family member or friend, is executing a gift deed in favour of the recipient. Though no monetary transaction is involved, it is still necessary to register the gift deed to make the transfer valid.
Advocates for Property Transfer in and around Pune
WHAT IS A GIFT DEED?
Under section 122 of the Transfer of Property Act, 1882, you can transfer immovable property through a gift deed. Like a sale deed, a gift deed contains details of the property, the transferrer and recipient. But instead of a sale consideration in a sale deed, a gift deed allows you to transfer ownership without any exchange of money. Registering a gift deed with the sub-registrar is mandatory as per section 17 of the Registration Act, 1908, and as per section 123 of the Transfer of Property Act. If you don’t do this, the transfer will be invalid.
Besides that, once a gift deed is registered in the name of the recipient, only then can she apply for mutation of the property. Mutation is necessary to transfer utility connections in the name of the recipient. Also, for the recipient to be able to further transfer the property, a registered gift deed will be required.
WHAT ARE THE CHARGES?
Stamp duty and registration fee has to be paid to register a gift deed. In some states, stamp duty rates for property transfer by way of gift is the same as for sale or conveyance deed.
However, rules vary across states; certain state governments even offer some concession if the property is being gifted to blood relatives. For instance, in Delhi, the stamp duty in case of property transfer by way of sale or gift deed is the same—4% for men and 6% for women. In West Bengal, the stamp duty for sale or conveyance deed is 5% of the property’s market value in panchayat areas, and 6% of market value in municipal areas. In case of a gift deed, the rate is the same if the property is being gifted to a non-family member. If recipient is a family member, then only 0.5% of the market value of the property has to be paid as stamp duty.
THINGS TO REMEMBER
Once a gift deed of an immovable property is executed in favour of any recipient, the donor does not have the right to revoke or cancel the deed at a later stage, unless there is a specific clause mentioned in the deed. Section 126 of the property transfer Act provides for a situation wherein a gift deed may be revoked by the donor. For instance, if the property was gifted so that the recipient can reside in it, upon death of the recipient, the property will get transferred back to the donor if she is alive, else to the heirs of the recipient. Such details, however, need to be specifically mentioned in the gift deed.
Everyone’s dream is to own a property. Obviously you need money to buy a property, but many recent instances of fraud and bogus selling of property is something that is beyond money alone. If there is one important thing that gives legal protection to ownership of your property, it is the sale deed.
What is sale deed?
A sale deed is one of the most valuable legal documents in a purchase or sale of a property. It is governed by the Registration Act and is an important document for both the buyer or the transferee and the seller or the transferor.
The purchase or sale of property is not legally complete until a sale deed is signed between the buyer and the seller. Usually a sale deed is signed only after both the parties are satisfied and comply with the terms and conditions as said in the agreement.
How is it prepared?
To begin with the buyer and the seller agree to prepare a draft sale deed on non-judicial stamp paper. This value of the sale deed will differ from state to state in the country and as prescribed by the Stamp Act of the respective State.
Once the following details in the sale deed is agreed between the two parties the sale deed is ready to be signed. The sale deed would also require to be signed by at least two witnesses with all their details included.
What does it contain?
A sale deed has almost all the details required to carry out the purchase or sale of a property. Beginning with the basic details like the full names of the buyer and the seller, and their addresses, the other details in the draft sale deed would include the details of the property under sale such as its identification number, its exact location, the address, total area of the property, and the detail of the construction if it is a house.Most importantly the sale deed would require the seller to certify that the property under sale is free from any encumbrance and without any lien.If there is an existing loan taken against the property the seller should settle the loan and then only execute the sale deed. However, it is always better for the buyer to check this with the local registrar’s office.Besides these the draft sale deed would also include the total amount to be paid for the purchase/sale of the property, advance amount paid if any, the dates on which the payment are made, how it is paid, the time given for the payments, the details of the bank transactions of the payments, etc.The sale deed would also mention about the receipt issued by the seller to the buyer for the money received towards the sale transaction.It would also clearly mention the exact date on which the seller would hand over to the buyer the original property related documents and the date of subsequent possession of the property under sale.The draft sale deed would also mention the indemnity provisions for the buyer and the seller.
How does it work?
The sale deed is registered at the jurisdictional sub-registrar’s office. Apart from the buyer and seller of the property under sale the witnesses should also be present at the time of registration.Sometimes if the buyer or seller is not in a position to be physically present his nominated agent empowered with a Power of Attorney is legally allowed to execute the sale deed.The original documents related to the sale of the property should be produced within four months from the date the sale deed is to be executed. If this is not possible the registrar might allow a grace period of another four months to produce the original documents however this delay might attract a maximum penalty of 10 times the registration charges related to the property.Usually, the buyer would pay the stamp duty and the registration charges. And the seller on his part should ensure that all payments related to the property such as property tax, cess, water and electricity charges, and others was paid before the sale deed is executed.