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NISHAT AFZA   07 July 2021

Transferring of property to another name

I have been running a shop of my relative for last 30years. Presently the name on every month bill is of my relative name. Now, the relative wants to hand over the shop to me as gift. What's should be the legal approach to proceed? How should I proceed?

if I signed a gift deed and don't transfer the name to myself, will that be ok?


Learning

 2 Replies

srishti jain   08 July 2021

According to the scenario that you have mentioned, let me brief you about gift deed.  A gift deed is defined under section 122 of The Transfer of Property Act (TPA). It is a legal document, which involves the voluntary transfer of property as a gift without the exchange of money.  The Gift Deed under Section 17 of the Registration Act, 1908 should be registered to consider it as a valid transaction. 

Section 126 of TPA deals with suspension and revocation of gift. Under section 126, gifts can be suspended or revoked under following circumstances:

  1. If the gift deed was made due to coercion or fraud.
  2. If it is determined that the grounds were immoral, illegitimate or reprehensible.
  3. If it was agreed upon from the beginning that the gift deed is revocable under certain circumstances.

In such cases, even in the event of the death of the donor, his legal heirs can go ahead with the revocation.

A deed of gift once executed and registered cannot be revoked, unless the requirement of Section 126 is fulfilled.

Anousko Das   09 July 2021

A gift is a transfer of ownership of a property (immovable/movable) without any consideration by one (called the donor) to another (called the donee). It has been defined under section 122 of Transfer of Property Act, 1882. 


A gift deed is executed to transfer the ownership of the property and it being one of the key elements. Also, the transfer will come with all “rights and liabilities” of the intended property. Therefore, making the donee vested in the property as absolute interest.


Other key elements such as it has to be out of affection/love that the doner decides to execute the gift deed i.e., “voluntarily and with free consent”. There cannot be any external force that drives the doner to execute the deed. Most importantly there has to be acceptance of the same.  


So, in order to carry out a valid gift deed, it is necessary to transfer the ownership from your relatives to yours. Otherwise, it will not stand as a valid gift. 


Therefore, it is not possible to sign and not transfer the name. You may consult with an advocate and discuss in details.

I hope I am able to answer to your query. 

 

Thank & Regards. 

Anousko Das. 


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