People who have immovable property can gift that property to their relatives or to third persons. In this type of deed of gift, the person that gives the gift in the form of immovable property is called the donor, and the person that receives the gift is called the donee. The deed is considered to be valid if it is made voluntarily by the donor, without consideration. There are some more requirements for the deed of this type to be valid. It has to be accepted by the donee. Furthermore, it has to be made by the donor and accepted by the donee within the frames of the lifetime of both of them. In the event that the donee dies before he or she has accepted the gift, then the deed becomes void. The gift deed which is drawn up represents an agreement which certifies that the donor wishes to gift the property described in it to the donee, and it also certifies that the donee accepts the gift. The two parties have to put their signature on the document in the presence of a specified number of witnesses.
It is mandatory that the deed should satisfactorily demonstrate that the donor was aware of what he was doing when he was gifting the immobile property, which means that the donor understood well the contents of the document.
In the event that a minor receives an onerous gift, the obligation should not be enforced with respect to him. Later, when the minor already becomes of age, he or she can choose whether to accept the burden, or to return the gift and thus not accept the obligation it carries.
The immovable property deed of gift has to be registered because the property should be transferred from the donor to the donee. The registration has to be made in the area where the immovable property is situated. There are a certain number of documents that have to be submitted at the time of the registration. They comprise a copy of the agreement, i.e. the gift deed, the encumbrance certificate, the statement of the property particulars, the title deeds of the property, and the extract of the assessment register of the immovable property.
It depends whether the gift is made to specified relatives or to other persons. When it is made to relatives such as a spouse, parents, or siblings, the deed is not subject to taxes under the income tax regulations.
It should be pointed out that gifts of this type should be made when there is existing property. Future property cannot be gifted in this manner. Another limitation includes minors who are not allowed to implement such deeds of gift of immovable property because they are incompetent enough to conclude contracts. When minors are to be the donees of some immovable property, their guardians can accept such gifts on their behalf; in such cases the deed contains a condition that the person who is nominated within will act as the manager of the property gifted until the minor comes of age.If you don`t know how to form this document, simply download an immovable property deed of gift template.