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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 Act 1882 defines the modes of making a gift. According to the Act, a gift should be made through a registered document signed by the donor or on behalf of the donor, attested by at least two witnesses.

An authorisation - power of attorney given to a representative - should be 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, a gift may be made by a father to his son and daughter, and the 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 is gifted to him only. He does not have any right, interest, or title to the property which was not accepted by the other. The proportion gifted to a person belongs to him and the unaccepted portion reverts to the donor.

The Transfer of Property Act 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 deed needs to be registered, the acceptance of the gift is usually recorded on it.

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 applicable to a sale deed. However, there is a concession in respect of gift to family members (spouse, son, daughter, daughter-in-law and grandchildren).

Under certain circumstances a gift can be suspended or revoked. It depends on the contents and conditions in the gift deed. 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 repugnant to the gift The condition should not be illegal or immoral

Under these circumstances, a gift is void and not enforceable:

In case the donor dies before acceptance If the donor is dispossessed of the property gifted, by law, before acceptance In case the donor or donee become incompetent to contract before the acceptance of the gift

_{Source: TimesProperty  Dt: 22-4-2011}