In India there are lots of alternatives to make a real estate transaction or transfer the property owned by you. But the best ways are creating a will, making a gift deed and going up with a sale deed. Opting for gift deed is the best way to transfer your property to your family members. In India real estate deed is a document that is used to transfer the ownership of a property or asset. A property deed provides a verified and legal description of the property by identifying the grantee for the property and grantor of the property. Deed transfer becomes more crucial when you are planning to sell an asset as it involves transferring the title of the property.
Parties to a Deed:
In a real estate deed there may be at least two parties to make a real estate transaction. One will be the Grantee of the property and second will be the Grantor of the property.
WHAT IS A GIFT DEED?
A property or immovable asset is transferable under section 122 of Transfer of Property Act 1882. An immovable asset can be transferred to someone through a gift deed which contains all the details of the property including the details of the Grantor and the Grantee. A gift deed allows transfer of property without any exchange of money but the registration of gift deed is mandatory under section 17 of Deed Registration Act 1908 and section 123 of the Transfer of Property Act in the office of the sub-registrar otherwise the gift deed transfer will be termed as invalid..
Once the gift deed is done in the favor of grantee or the recipient only then he is eligible to apply for the mutation of the property. Mutation is another important concept to transfer utility connection like electricity connections and water connection in the name of the recipient.
What are the Charges Applicable for Gift Deed?
For a successful registration of gift deed in India, Stamp Duty and Registration Fees is required to be paid to register the gift deed. Stamp duty rates and registration fee has to be paid to register a gift deed in the sub-registrar office while registering the gift deed. In some states, stamp duty rates and registration fee for property transfer via gift deed registration are variable as for sale or conveyance deed.
What can be gifted?
Anything that is subject to gift deed must have following properties:-
What is Relinquishment Deed?
Relinquishment deed is fairly different from the gift deed although both have same type of legal implications. Relinquishment deed can be used as a tool to transfer exclusive transfer rights of your property to your loved ones or to another co-owner. Property transfer made via Relinquishment deed is irreversible even if it is made without any exchange of money. You can use this instrument if you want to transfer your rights in a particular property to another co-owner. All the documents related to the transfer of immovable assets are required during the validation of Relinquishment deed, which is signed by both the parties.
Stamp duty and registration charges are near about same for gift deed and relinquishment deed. There is no facility of tax benefit or discount offer in relinquishment deed. Registration fees, Stamp duty and other estate taxes are only applicable on the piece of property that is relinquished via deed. Relinquishment Deed is also useful to transfer movable property without registration but not that much helpful for the transfer of immovable assets.
Advantages of Relinquishment deed
Relinquishment deed offers flawless transfer of your share in a jointly owned property. Relinquishment deed keeps an importance in such circumstances when one of the co-owner of the property dies without leaving a will and there is a controversy among the siblings to inherit the property. contrasting a gift deed, the relinquishment deed can be drafted for financial concerns.
WHAT IS TERMED AS MUTATION?
Mutation is termed as the updations of changes in property title transfer in the local Municipal Corporation records. The changes in ownership of property may occur without a real estate transaction, inheritance, death of the owner or due to subsequent transfer of ownership of property. Having a mutation record for a property in the municipal records doesn’t implies your ownership rights on a property as a mutation can be done even without the sale of a property.
Why Real Estate Deed transfer is mandatory?
There may be lots of reasons to go for a deed transfer. It may be a thing of essence, if someone’s name is required to be removed or changed on the title. To ensure a change in property title through a legal procedure, it is always advisable to choose reliable services of a real estate attorney.
How Our Expert Legal Team Can Help You
It’s our responsibility to make your property transfer smoother with the help of our legal professionals when you decide to choose Hometurph. Here you will get the mentioned below advantages:-