A gift deed is only valid if it is given out of ove and affection, without any consideration in return by one family member/ friend to the other.Also, under Section 17 of the Registration Act,1908, it is mandatory to have registered Gift Deed when you want to transfer immovable property.He can also make an affidavit and advertising it in a newspaper.
Section 122 of the Transfer of Property Act defines a gift deed as a legal document that describes the voluntary tansfer of gift from a donor (owner of the property) to donee ( receiver of the gift) without any exchange of money.The donor must be solvent and should not use this tool for tax evasion and illegal gains.
Your gifted property can help you avail of a loan at interest rates lower than other customer loans. In case of a gift deed in favour of the donee comes with all the atendant rights which accrue to the title holder of a property. So if it is an unconditional gift deed then one has the right to mortgage it to obtain a loan.
In case of a gift deed the transfer of title is instantaneous unlike a will.An unconditional gift deed in favour of the donee comes with all the attendant rights which accrue to the ttle holder of the property.So if its is an unconditional gift deed,then you have the right to mortgage it to obtain a loan.
Reference: Section 17 of the Registration Act,1908
Section 122 of the Transfer of Property Act