ACCEPTANCE MUST TO MAKE VALID GIFT

Rent Gurgaon outlines some conditions to be met while making a gift of property.

Certain points need to be understood if you plan to gift property. Section 123 of the transfer of property section 123 of the transfer of properties act 1882 defines the modes of make a gift. According to the act, a gift should be made through a registered document signed by the donor on a behalf witnesses. An authorization-power of attorney given to a representive – should clear on the provisions for making the gift. The power of attorney should be stamped as per the applicable laws.

There may be a case where a gift is made to two or more persons , and one of them may not accept it . For example, an example gift may be by a father to his son and daughter may refuse to accept it. In such a case, where one does not accept the gift, it is not invalid completely. The gift becomes inoperative and void as to the interest which was not accepted. The other person, who accepts the gift, is entitled to what he is gifted to him only. He does not have any right, interest, or title to the property which was not accepted by the other people. The proportion gifted to a person belongs to him and the unaccepted portion reverts to the donor.

The transfer of property acts stipulates that acceptance of a gift has to be made during the lifetime of the donor and while the donor is still capable of giving it as a gift deeds needs to be registered, the acceptance of a gift is usually recorded
A basic requirement of gift is absence of any kind of consideration. Although there is no consideration received on a gift, it attracts stamp duty and registration changes as application to be sale deed. However there is a concession in respect of gift to family members (spouse, son, daughter, daughter- in law and grand children). Under some circumstances a gift can be suspended or revoked. It depends on the contents and conditions in the gift indeed. Both the donor and donee must agree on such conditions.

A Gift May be Revoked On These Grounds
 In case of a specific event specified in the gift deed.
 Both the parties should have accepted the conditions and the donee should have agreed on this condition while accepting the gift.
 An event that revokes a gift should be beyond the control and will of the donor
 Any condition imposed must not be illegal or immoral
 The condition should not be illegal or immoral.
 Under these circumstances , a gift is void and not enforceable:
 In case the doner dies before acceptance
 If the doner is dispossessed of the property gifted , by law ,before acceptance
 In case the doner or done become incompetent to contract before the acceptance of the gift


QUICK
BITES
 SECTION 123 OF THE TRANSFER OF PROPERTY ACT 1882 DEFINES THE MODES OF MAKING A GIFT.

 ACCORDING TO THE ACT , A GIFT SHOULD BE MORE THROUGH A REGISTERED DOCUMEN SIGNED BY THE DONER OR ON BEHALF OF THE DONER , ATTESTED BY AT LEAST TWO WITTNESS