Vikram RMD (Acc) 11 May 2012

Property gift deed versus property sale deed

Some one I know claims the following....is it correct?

1. In case of Gift deed of property, the gifted property can be taken back by the donor, since the donor has not taken money from the donee. The donor needs to file a court case and explain to the courts why he wants the gift back, and the court decides whether the gift should be returned to the donor.

2. In case of Gift deed of house from, for example, an aged father to his son, the son, after receiving the property gift, cannot ask the aged father to leave the home, although the gift deed from father to son has been properly executed.

3. In case of Sale deed of property, it gives complete power to the reciever of property than a gift deed, since in case of sale deed, money exchanges hands.

If Point number 1 and 2 is true, under what section, what law, can the donor file a case to take back the gifted property?

Thank you.

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5 Replies

Adv.R.P.Chugh (Advocate/Legal Consultant (rpchughadvocatesupremecourt@hotmail.com)) 11 May 2012

Dear Querist,

You are misinformed :-

1. Though the Gift can be made revocable - but the condition on which the same is revocable should be other than mere wish of the donor. Normally it is irrevocable.

2. Once property is gifted validly through a registered instrument - Donor cannot cancel/rescind - even though no money is paid - otherwise there would be no stability of title. Once a thing is gifted it is gifted for all times to come.

3. Donor can rescind the gift only on certain grounds that make the gift void/voidalbe at his behest.

4. Son/father gift - that you talk about there is nothing like that.

5. Sale stands on same footing as gift.

Ajit Singh Cheema (practising Advocate) 11 May 2012

A gift deed is a sale deed without consideration.The power /Title given in gift deed is the same as in case of sale deed.Essence of gift deed is that it is gratuitous transfer.The essential ingredients of the gift are that it is a transfer of immovable property made voluntarily and without consideration by the donor and accepted by or on behalf of of the donee and such transfer must be effected by a registered document,signed by the donor and attested by at least two witnesses.Acceptance may be made during the life time of the donor and while he is capable of giving.The gift deed can be challenged in the court of law on the grounds of Fraud and Misrepresentation and also for use of Undue influence.

sri (ceo) 11 May 2012

gift deeds conveniently used in place of sale deed to avoid expenses...

Sundeep (Home) 18 September 2012

Hi there,

Just wondering if I can take a home loan on a house that is being given as a gift deed ??

Regards,

Sunny

R SRINIVASAN (EX SENIOR MANAGER) 25 November 2014

I constructed a house from my own funds and later gifted this to my father by a gift deed duly registered.Later he told me to cancel the same and I have done accordingly and the cancellation deed was also registered. But he has not signed any of the above documents. He expired 13 years back. I want to know whether I am the owner of the property at present or is it necessary to get a release deed from all the legal heirs of my father in favour of me.

R Srinivasan