A gift deed is a legal document that involves the consensual transfer of ownership as a gift without the transfer of value through one person to another, according to Section 122 of the Transfer of Property Act. The individual who owns the property is known as the donor, and the person who receives the gift is known as the donee. Only if the transfer is made without consideration from one member of the family to another is the deed lawful. To be considered a legal transaction, the Gift Deed must be registered under Section 17 of the Registration Act, 1908. The deed contains information about the property, the giver, and the donee.The donor should not be bankrupt at the time of the transfer. The item given as a gift should be visible and transferrable. Gifts of both mobile and immovable property are possible.
Gift Deed Cancellation:
Once a deed has been acknowledged by the donee and registered according to the law, it cannot be withdrawn. It cannot be cancelled by the donor on his or her own. The donor and donee can revoke the deed using the revocation clause specified in the deed. The right to revoke should be legal. If the donor is deceased, the heirs of the donor might petition for revocation.
By the death of donee, the deed is canceled, and the right is transferred to the donor, according to Section 126 of the Transfer of Property Act. If the gift deed is transferred based on threat, fear, or any kind of influence, it can be revoked as per Section 19 of the Contract Act, 1872. However, under Section 126 of the Transfer of Property Act, there should contain a clause to that effect with both donors and donees consent that after the death of the donee the donor can take back the said property. Without such a clause in the Gift Deed it is not possible to cancel a Gift Deed once transferred and accepted by the donee.
Reference: The Transfer of Property Act, 1882
Indian Contract Act, 1872
The Registration Act, 1908
Section 17 – – AHG156 – 202100581 – 78 – 74 – 2021001552021004218748