There are many ways that a property can be transferred in India. One of them being by executing a gift deed. Many people ponder over the thought that gift deed property can be sold or not. I shall tell you about that and we can also know a little bit about what are gifted properties. What is a gifted property?When a property transfer happens by executing a gift deed, it is recognized as a transfer of ownership of a gifted property under Transfer of Property Act 1882. The one gifting the property is known as a donor, while the one on the accepting end is known as a donee.Gifted land can be sold or not?Yes , you can sell a gifted property if you have received the property via a registered gift deed transfer. Once the property is transferred in your name, you have the right to sell it. In case a conflict occurs and one of the parties decides to challenge the gift deed in the court, upon cancellation of the deed the donee will not have the rights to sell the property.You must know about what all clauses are covered in a gift deed:
Donor and Donee details along with the relationship they share
Declaration of voluntary transfer of property
Clauses for ownership of property
Each and every detail about the property
Rights of donee on the property (which talks about selling rights of the property as well)
Acceptance and delivery of the property
Names and details of the witnesses
Revocation clause of the gift property to avoid future conflict
Yes, a gifted property can be sold if it is a registered gift deed in the name of the receiver. It is because a gift deed is as valuable as a sale deed.
Section 122 of the Transfer of Property Act defines 'gift' as the transfer of certain existing moveable and immoveable property made voluntarily, without any consideration, by a donor to a donee.
Essential elements of a Gift:
There are the following five essentials of a valid gift:
Transfer of ownership
Existing property
Transfer without consideration
Voluntary transfer with free consent
Acceptance of the gift
Since, the ownership is transferred through a gift, the receiver becomes the owner, so he can sell the property gifted to him by a gift deed.
Sample Gift Deed is attached herewith. You can download deed of gift format in pdf by clicking on the attachment.
As a law student, I can tell you that a gifted property can be sold, but it is subject to certain legal restrictions and requirements. I asked my lawyer, the gift deed property can be sold immediately or not. He told me that the sale of gifted property is different from a standard property. Get your property documents checked and verified by legal experts from NoBrokerApply for a home loan with a minimum interest rate through NoBrokerGift deed can be sold?According to the Indian Transfer of Property Act, of 1882, gifted property can be sold, however, certain conditions must be met. Firstly, the gift must be made by a person who can transfer the property. Secondly, the gift must be accepted by the person to whom the property is gifted. And thirdly, the gift must be made with the intention of transferring ownership of the property.To sell a gifted property, the person who received the gift must first obtain a gift deed, which is a legal document that serves as proof of the gift. The gift deed must be registered with the relevant authorities, and the person selling the gifted property must provide a copy of the gift deed to the buyer.Additionally, when conducting a gift deed property sale, the seller is required to pay any taxes or charges that may be due on the sale of the property. For example, if the property was gifted within the last three years, the person selling the property may be required to pay a gift tax on the sale. The seller must also provide a No Objection Certificate (NOC) from any outstanding loans or mortgages that have been taken on the property.If you have more doubts about gift deed property can be sold immediately, comment below. Read more:Can gift deed be challenged in court?What is Gift Deed?What is gift deed of immovable property?
If you are wondering can a gifted property be sold immediately. Let me answer this.Yes, a gifted property can be sold by the recipient (donee) immediately with certain conditions.Can gift deed property be sold? The conditions for this are:Gift Deed: The property must have been legally transferred to the recipient through a registered gift deed. It should be registered with the Sub-Registrar office.Right to Sell: As the legal owner, the donee has the right to sell the gifted property. Donee can enter into a sale agreement and complete the sale transaction.Capital Gains Tax: When the gifted property is sold, the donee is liable to pay capital gains tax on the sale amount of the property. The capital gains tax depends on whether the property was held as a long-term or short-term asset.Gift Tax: In India, there is no gift tax payable by the recipient (donee) for gifts received. If you have received the gift from a non-relative, it could be subject to income tax.During the sale transaction of gifted property, the donee and the buyer must pay the applicable stamp duty and registration fees to complete the sale transaction.Mutual Consent: There should be mutual consent between the donee and the buyer on the terms and conditions of the sale.Compliance with Local Laws: To answer your question, can i sell gift deed property. You should know that both seller and buyer must obey their local laws and regulations. This includes obtaining necessary approvals and clearances.The title of the property should be clear, and free from any encumbrances, disputes, or legal issues that could affect the sale.Documentation: The sale of the gifted property should be done through a sale deed, which must be registered with the Sub-Registrar's office.It is important to consult a legal expert for the sale of gift deed property. I hope this clarifies your doubts around can we sale gift deed property.Need help with legal matters? Contact NoBroker expertsRead moreWhere to show gift received from relatives in ITR?Can Gift Deed be Challenged in Court by Legal Heirs
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Essential elements of a Gift:
There are the following five essentials of a valid gift:
Can a gifted property be sold?
Shekhar
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September 24, 2021
2021-09-24T15:18:00+00:00 2023-09-13T20:06:43+00:00Comment
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