How to make a gift deed for an immovable property? What cost involved?
What is the process of Gift Deed of an immovable property? Its a freehold property and I want to gift it to a blood relation. What is the process and how much time does it take?
What is the cost involved?
The owner of an immovable property can gift it to a relative or a third person. A gift is considered valid if it is made voluntarily and without consideration. It is also essential for it to be accepted by the donee.
Drafting the Gift Deed: You can consult an advocate to draft a gift deed for you. The same required the signatures of both the parties in the presence of at least two witnesses.
Registration: A gift of immovable property amounts to its transfer under the Transfer of Property Act. Hence, the gift deed needs to be compulsorily registered with the sub-registrar in the area where the property is situated.
Documents required to be submitted at the time of registration.: A copy of the gift deed, title deeds of the property, encumbrance certificate, statement of particulars of the property, its market value and the extract of assessment register of the property must be submitted at the time of registration.
Stamp duty: The stamp duty is calculated as a percentage of the market value of the gifted property and differs from state to state. Such a gift to relatives attracts stamp duty at a lower rate. In Delhi, charges payable to the Govt. are 7% incase of Male, & 5% in case of female apart from Deed Writers Fee.
However it is pertinent to note that a minor cannot give a gift since he is incompetent to enter into a contract. The guardian can accept a gift on behalf of a minor.
With respect to the time, we would like to mention that it is not a very cumbersome process and can be completed easily within 1-2 weeks.
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