What is a Gift Deed?

A Gift Deed is a legally binding document used to voluntarily transfer ownership of movable or immovable property from one person (the Donor) to another (the Donee) without any monetary consideration. It serves as formal proof of the Donor’s intention to make a gift out of love, affection, or goodwill and records the Donee’s acceptance of the gift.

Gift Deeds are commonly executed between family members, relatives, or trusted individuals to transfer assets such as land, houses, jewellery, shares, or other valuables during the lifetime of the Donor. A well-drafted Gift Deed ensures clarity of ownership, prevents future disputes, and provides legal protection to both the Donor and the Donee.

This template is:

• Lawyer-drafted, legally neutral, and adaptable for use in multiple jurisdictions.

• Applicable to individuals, families, and organizations.

• Covers voluntary transfer, ownership declaration, acceptance, revocation conditions, and registration requirements.

• Customizable for both movable and immovable properties.

Key Features of a Gift Deed

1. Parties to the Deed

Identifies the Donor (who makes the gift) and the Donee (who receives the gift), along with their details such as name, address, and relationship.

2. Description of Property

Clearly specifies the details of the gifted property — its nature, location, identification number, or description sufficient to establish ownership and transfer.

3. Voluntary Transfer & Consideration

States that the transfer is made voluntarily and without any exchange of money or valuable consideration, emphasizing that it is a gift given out of natural love and affection.

4. Acceptance of Gift

Confirms that the Donee has willingly accepted the gift during the Donor’s lifetime, a legal requirement for the gift to be valid.

5. Ownership & Possession

Declares that upon execution, the Donee becomes the absolute owner of the property, entitled to enjoy, use, or dispose of it as desired.

6. Revocation Clause (Optional)

May include terms outlining specific conditions under which the gift may be revoked by mutual consent, ensuring flexibility while maintaining fairness.

7.  Liabilities & Encumbrances

States whether the gifted property is free from debts, liens, or encumbrances, or discloses any existing charges transparently.

8. Registration & Stamp Duty

Specifies that the Gift Deed must be duly executed, stamped, and registered (as per local registration laws) to attain legal validity and evidentiary value.

9. Governing Law & Jurisdiction

Indicates that the deed shall be interpreted in accordance with applicable property and contract laws of the relevant jurisdiction.

Why You Need a Gift Deed?

• Provides legal recognition and proof of ownership transfer.

• Prevents future ownership disputes among heirs or third parties.

• Ensures clarity and transparency in voluntary transfers.

• Protects the interests of both Donor and Donee through written documentation.

• Facilitates registration and mutation of property records.

FAQs on Gift Deeds

Q1: Is a Gift Deed legally binding?

Yes. Once executed, accepted, and registered (where required by law), it becomes a legally enforceable document confirming ownership transfer.

Q2: Can a Gift Deed be revoked?

Generally, a Gift Deed cannot be revoked unilaterally after acceptance, unless a specific revocation clause is mutually agreed upon and recorded in the deed.

Q3: Is registration mandatory for all Gift Deeds?

Registration is mandatory for immovable properties under property registration laws; for movable assets, written or witnessed documentation may suffice.

Q4: Can a Gift Deed be executed electronically?

Yes, in jurisdictions recognizing e-signatures and digital documents, a Gift Deed may be executed electronically, provided legal requirements are met.

Q5: What are the tax implications of a Gift Deed?

Depending on the jurisdiction, gifts between close relatives are generally exempt from tax, while others may attract gift or transfer taxes.

Related Templates You May Need

• Will or Testament

• Transfer of Property Deed

• Build-to-suit Lease Agreement