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Tanu (Entrepreneur)     21 June 2014

Add clause to gift deed

Dear Sir/ Madam,

Is there an option to add a clause to a Gift deed.

A gift deed was given to me by my mother for our house. At the time of registration, I requested the document writer to include a clause that my mother and mentally challenged brother can stay in my house life long, But she didn't do that and so I'm the legal owner of the house.

Is there a way to add the clause again or any other alternative?

Thanks in advance



Learning

 12 Replies

Dr J C Vashista (Advocate)     21 June 2014

Gift cannot be conditional, hence the clause cannot be inserted. If included the gift is invalid.

Tanu (Entrepreneur)     22 June 2014

Thanks your quick reply, Sir.  I inquired with a local advocate and he said a clause could have been added to the documents, before the gift deed registration.  On browsing the web, I came across Rectification Deed.

 

Can this be done and the documents be converted to Relinquishment deed?

 

Thank you.

Advocate Ravinder (Advocate/Attorney)     22 June 2014

Gift can be conditional.  You can insert that clause with the consent of your mother only and not alone.  You have to execute registered Rectification deed before the Sub Registrar office. 

Tanu (Entrepreneur)     22 June 2014

Thanks for your advice, Sir.  But the gift deed is already registered in my name by my mother in April 2014.  So can a clause be added NOW to the gift deed by FIRST registering a Rectification deed?

Advocate Ravinder (Advocate/Attorney)     22 June 2014

There is one more option.  You can cancel the earlier gift and create a new gift deed.

Tanu (Entrepreneur)     22 June 2014

Thanks for the 2nd option Ravinder sir. 

But I would have to go through the same process once again with all the expense & fees for registration.

Also I have applied for a possession certificate which is due in a day or two with the new gift deed documents.  I have already got an encumberance certificate too.

So I'm wondering whether this option is feasible.

Tanu (Entrepreneur)     24 June 2014

Can somebody give me an advice for the above mentioned matter please?

T. Kalaiselvan, Advocate (Advocate)     24 June 2014

Gift Deed is a contract between donor and the donee which defines simultaneous and reciprocal act of giving and taking.A gift to be valid must be made by a person voluntarily and not under compulsion without any exchange of money.Acceptance of the gift after its execution is a legal requirement and Donee must accept the gift during the lifetime of donor. In case donee fails to accept the gift, it is rendered invalid. The acceptance may be validated by acts such as taking possession of the property. Gift deed is irrevocable post execution.Once the property is gifted, it belongs to the beneficiary and you cannot reverse the transfer or even ask for monetary compensation.No sooner does the donor relinquish his right in the property followed by delivery of possession and acceptance by the donee than a gift is completed.

Revocation Of A Gift:
Section 126 of the Transfer of Property provides for conditions where a gift can be revoked. the following are essential ingredients for revocation of gift:
i) there must be an agreement between the donor and donee that the gift shall be suspended or revoked on the happening of a specified event;
ii) such event must be one which does not depend upon the will of the donor;
iii) the condition as to the suspend or revocation should be agreed to by the donee at the time of accepting the gift. And,
iv) there must exist a ground , except want or failure of consideration, on which a contract may be rescinded.
v) the condition should not be illegal, or immoral and should not be repugnant to the estate created under the gift.
vi) Section 126 is controlled by sec. 10. As such, a clause in the gift deed completely prohibiting alienation is void in view of the provisions contained in sec. 10.
vii) A gift, which was not based on fraud, undue influence or misrepresentation nor was an onerous one, cannot be cancelled unilaterally. Such a gift deed can be cancelled only by resorting to legal remedy in a competent court of law.

Hope your query is resolved now (?)

Tanu (Entrepreneur)     25 June 2014

Thanks for your advice, Kalaiselvan sir. But on this thread there are different advice regarding clause added to gift deed. Adv Ravinder says "Gift can be conditional". I got the same advice from a senior advocate from our location. I'm not sure which is right?

Tanu (Entrepreneur)     26 June 2014

Can anyone give me an advice on this?  If there is a legal person from Kerala, who can follow up with this thread, that would be great!

T. Kalaiselvan, Advocate (Advocate)     26 June 2014

If you are not satisfied with the opinions and advises rendered here, you may proceed as per your advocate at your place.

Tanu (Entrepreneur)     27 June 2014

Please........... I would prefer a lawyer from Kerala to follow up this thread.

On reading some of the threads here with similar case, it looks like the rules are different for each location.


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