Criminal Trident Pack: IPC, CrPC and IEA by Sr. Adv. G.S Shukla and Adv. Raghav Arora
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asha rani singh (housewife)     03 March 2014

Transfer of property

I need ur advice on following matter
 
1) My mother -in- law is the 1st owner and my husband is the 2nd owner of a flat.
2) My mother-in-law now wants to give away her rights and wants the flat to be owned by my husband .
3) She has made a will and had it registered it too.
4) My husband has 3 siblings.
5) My mother-in-law want to gift this flat to my husband.
6) What is the best process possible?
7) what is the process for a gift deed? 
8) How much will be the expense for this?
 
Your advice will help us take decision.
 
Thanks
 
Mrs Asha Rani Singh


Learning

 7 Replies

Pritam Gupta (Teacher)     04 March 2014

Without any doubt a registered gift deed is the best and cheapest of all alternatives, if your mother-in-law is willing. In case of the Will, it is probable that it might be contested and there is no surety that you will be able to probate it. For expenses consult a lawyer as it is highly dependant on him/her but it should not be a major headache as the procedure is a very standard one.

Mohit Jolly (Partner)     28 March 2014

Hi Asha,

 

Gift deed is the most hassle free mode of transfer of property in this scenario, provided your mother in law has acquired the property through her own means and funds (self-acquired). However, a registered gift deed would be subject to payment of stamp duty and registration fee.

 

Regards,

 

Mohit

Pritam Gupta (Teacher)     29 March 2014

Is it mandatory for the property to be "SELF ACQUIRED" in case for the person who is doing the gifting? Then if gifting is already done for non self acquired property then is the gift deed liable to get cancelled? 

Pritam Gupta (Teacher)     29 March 2014

Is it mandatory for the property to be "SELF ACQUIRED" in case for the person who is doing the gifting? Then if gifting is already done for non self acquired property then is the gift deed liable to get cancelled? 

asha rani singh (housewife)     29 March 2014

am from andheri w , mumbai

can someone tell me approximate expences pl

asha rani singh (housewife)     16 November 2015

i have learnt that there is no registration and transfer fee on gift deed to blood relation in maharashtra.is this true??

 

Dr Katta Venkata Rama Krishna (Retd Sr Director Govt of India/ Advocate)     16 December 2015

1. Its not clear whether your mother-in-law is the absolute owner of the property and the property is anestral or self-acquired.  Ancestral means descended for the last four generations without any partition or settlement.  There may be other heirs whose interest cannot be gifted unless mother-in-law is the absolute owner.  Three Siblings presumed to beyour husband's  brother/sisters, not his children.

 

2. Assuming the property is not ancestral but self-acquired, since your mother-in-law and husband are co-owners of the said flat, she may execute either a gift deed or a release deed to transfer her share to your husband.

 

3. The Maharashtra Government waived off stamp duty on transfer of immovable property by its owner to an heir or a family member. (March 2015).  1 % of Market Value or Rs.30,000/- which ever is less. Registration is Compulsory. For Will only Rs.100/­.

 

4. Pros and Cons of Gift deed over Will

Pros
1. It is executed during the life time of donor and transfer happens immediately whereas “Will” is applicable after death.

2. Gift deed needs to be registered; only then it is effective. Registration renders it less liable to litigation. “Will” on the other hand is prone to litigation.

3. Transfer using gift deeds are tax free in the hands of donor and donee.


Cons
Gift deed is irrevocable post execution but “Will” can be changed as many times as you want.

5. Gifting process can be subdivided into three parts as described below:

1. Drafting the Gift Deed – A gift deed is drafted with the help of a lawyer and it describes what is being transferred and to whom. 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.

2. Acceptance – 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.

3. Registration – As per Section 123 of the Transfer of Property Act, a gift of immovable property cannot pass any title to the donee unless it is registered. Attestation by two witnesses is required during registration and post registration, title transfer is possible.
 

 

 
 

 

 

 

3.


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