Sahil Adv. (IT Professional) 04 June 2009

Gift Deed or Release Deed with Consideration

Hi there, I am really confused between Release Deed with Consideration and Gift Deed, I consulted with two persons and one of them suggested Release Deed with Consideration and another one suggested Gift Deed, Could you guys please advice me what should be appropriate in my case, so that It can not be canceled, revoked or challenged.

Here's is my case:
My father and Uncle jointly purchased two properties in 1958 and 1960 respectively. In 1994 both of them made G.P.A and Will in favour of each other, using the G.P.A. my uncle sold property he was living in. In 2001 my father died without using his G.P.A. hence the G.P.A. and Will made in favour of my father by my Uncle stands cancel now. Now we want to sell property we're living in but being a jointly purchased property we need our Uncle's consent. My uncle is agree to give away his half share to us, then I consulted 2 persons one of them is advocate and the other one is a Document Writer. Mr. Advocate is suggesting Gift Deed but Mr. Document Writer is suggsting that Release Deed with Consideration should be done in favour of my mother (my mother will be co-owner after we all brothers/sister do Relinquishment Deed in favour of her) because Gift Deed can be canceled or challenged by my Uncle's legal heirs.

Could you please suggest me the best way of getting this thing done which should not affect us in any way in future.

Regards,
Sahil

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5 Replies

Sahil Adv. (IT Professional) 04 June 2009

One more question related to the above.

My father and uncle had made a release deed in 1994 which was not registered with the Sub-Registrar, is it of any use?

D.V.RamaKrishna (Advocate) 04 June 2009

Sahil,

It is not clear if the GPA and will executed by your father and your uncle in favour of eachother, with respect to the respective shares in the properties, are registered or not.

If not registered then your uncle can transfer his right of share of half of the property in fovour of your mother either by way of gift or relinquishment deed, and by whatever mode it is done you have to get it registered for the transaction to be effective. After that you all brothers/sisters can execute a relinquishment deed in favour of your mother of all your right in the property acquired jointly after the death of your father.

When once a gift deed is executed (of the self acquired property of your father and uncle) and transfer of property under gift deed is effected by way of donee accepting the gift and getting into possession of the property, the donor cannot unilaterally cancel the gift deed later on without the consent and approval of the donee.

So far as the release deed executed by your father and uncle in 1994, which remained unregistered, is concerned, it has got no value.

n.k.sarin (advocate) 04 June 2009

Agree with Mr. Rama Krishna.

Sahil Adv. (IT Professional) 04 June 2009

Sir,

Quote:
It is not clear if the GPA and will executed by your father and your uncle in favour of eachother, with respect to the respective shares in the properties, are registered or not.

All the four (2 GPA, 2 Will) documents were registered in 1994. My uncle sold the property he was living in using the power of GPA made in his favour by my father, but my father died in 2001 without doing anything. After my father's death G.P.A. and Will which were made by my Uncle in favour of my father don't have any value right?

Quote:
When once a gift deed is executed (of the self acquired property of your father and uncle) and transfer of property under gift deed is effected by way of donee accepting the gift and getting into possession of the property, the donor cannot unilaterally cancel the gift deed later on without the consent and approval of the donee.

As far as the self acquired property is concerned, I was told by my mother that both property were bought directly in the name of my Father and Uncle (however they both were minor at the time of purchase) but payment was done by my grand mother.

Sahil Adv. (IT Professional) 04 June 2009

Sorry for posting in two posts again

We do not have any documents showing that the payment made to purchase both the properties was done by my grand mother, however my father and uncle both were below the age of 18.