Gift Deed, Release Deed / Relinquishment deed & Transfer Deed

  A gift deed allows one to gift her assets or transfer ownership without any exchange of money. The gift of immovable property must be in accordance with section 122 of the Transfer of Property Act, 1882 (TOPA). Gift deed transfer share of the property voluntarily, without consideration, and it must be accepted by other party during the lifetime of executor while capable of giving.

The transfer must be effected by a registered and stamped instrument signed by or on behalf of gift deed executor and must be attested by at least two witnesses in accordance with section 123 of TOPA. Stamp duty is payable on the gift deed. It is governed by the provisions of the Maharashtra Stamp Act, 1958, if the property is situated in Maharashtra.

The stamp duty payable, where the gift is being made to a son, will be 2% of the market value (ready reckoner value) of the property.

The gift deed will also have to be registered and registration charges will be payable.

(ii) A release deed is quite different from a gift deed, though the legal implications are the same. You can use this instrument if you want to transfer your rights in a particular property to another joint owner(s)/co-owner(s). Such a transfer is irrevocable even if it is without any exchange of money or for monetary consideration.

As with all documents related to the transfer of immovable property, a release deed needs to be signed by both parties, stamped and registered. You should note that stamp duty will be applicable only on the portion of the said property that is relinquished and not on its total value.

(iii) You can also purchase share in the property by executing a deed of transfer and on payment of consideration for the same. No sale can take place or no deed of transfer can be executed without payment of consideration. Stamp Duty will be payable on the deed of transfer in accordance with the provisions of the Maharashtra Stamp Act, 1958 and the deed will also have to be registered.

Please note that it is mandatory to register a gift deed, release deed or transfer deed with the sub-registrar of assurances as per Section 17 of the Registration Act 1908, otherwise the transfer will be held invalid. 

Thus, on execution of any of the aforementioned documents, the same will be required to be registered with the office of the sub-registrar of assurances within whose sub-district the whole or some portion of the property is situated, within a period of four months from the date of execution of any of the aforementioned documents.