Drafting (Gift Deed)

COURSE: BBA. LLB SECOND YEAR 2022-2023

SUBJECT: LEGAL LANGUAGE/GENERAL ENGLISH IV
 Meaning of a Deed and its components

A “Deed” is a legal document that is an official record and proof of

ownership of property.
It is executed through conveyancing i.e instrument which tells us as
to how the title of movable or immovable property between two living
persons is transferred.
A deed must contain the following particulars-
 Components of a Deed

1. Description of the Deed

2. Date and Parties

3. Recitals

4. Testatum

5. Testimonuim

6. Signature and attestations

 Components of a Deed

1. Description of the Deed

 All deeds should be described by the name of the transaction.
 All transfer deeds should begin with the words : “This Deed of Sale,
This Deed of Gift, This Deed of Mortgage, etc”
 In case where the deed is of a complex nature and shows various
transactions or where the person who conveys is not certain as to the
name of the transaction, it is advisable to describe it as “ This
deed……”.
 Components of a Deed

2. Date and Parties to the Deed

(i) Date: Another requirement of Deed after description of deed is the date
on which it is executed and it should be clearly mentioned.
For example: This Deed of Gift is made on the 4th day of November, 2020.
 The date of deed shows the date on which is it signed by the parties who
are executing it.
 The date of deed is also important point for determination of its
correctness by the officer of registration.
 It is also important for the purposes of application of Limitation Act.
(ii) Parties: After the Date is written, the names, address and description of
the parties to the deed are mentioned.
 Components of a Deed

 In case the party is a legal person such as a company, partnership firm etc,
the name of the entity, its registered address and the authorized signatory is
mentioned
Example: ABC Private Limited, a company incorporated under the
provisions of the Companies Act, 2013 and having its registered office at Plot
No. 24, Senapati Bapat Road, Near Ratna Hospital, Pune 411016 India,
through its authorized signatory Mr. XYZ

 In case of a natural person, the person’s name, age, occupation and address
is mentioned
Example: Mr/Ms PQR, age: 28 years, occupation: service, residing at Flat
No.4, Kailash Apartments, Paud Road, Kothrud, Pune 411038
 Components of a Deed

To avoid repetition of full names of the Parties at every place, the parties are
generally referred to in the deed by some easy names which ordinarily have the
reference to the status and character under which they enter into the deed
such as “vendor-purchaser”, “donor-donee”, “lessor-lessee”.
Such reference should be made at the beginning of the deed, after the names,
descriptions of the parties are mentioned
Example:
ABC Private Limited, a company incorporated under the provisions of the
Companies Act, 2013 and having its registered office at Plot No. 24, Senapati
Bapat Road, Near Ratna Hospital, Pune 411016 India, through its authorized
signatory Mr. XYZ (hereinafter referred to as the “Vendor”) of One Part
 Components of a Deed

3. Recitals
This part of the deed explains the reason behind the execution of the
deed and it generally begins with the word “Whereas……”
Two types of recitals: (i) Narrative recital and (ii) Introductory recital
Narrative recital: contains the previous history of the property in
transaction and mentions the fact and circumstances required to exhibit
the title and status of parties
Introductory recital describes the object for making and execution of the
deed
 Components of a Deed

4. Testatum
Generally, under the testatum, the following points are covered-
(i) Consideration of the transaction : Under the contract law, except in case of
some exceptions, consideration is necessary to constitute and valid and binding
contract. It is also required to ascertain the stamp duty applicable on the deed.
Under S. 27 of the Indian Stamp Act, 1899, consideration should be fully, clearly
and truly mentioned in the deed.
(ii) Receipt of consideration: Acknowledgement of consideration by the parties
is an essential part of the testatum
(iii) Description of property transacted: It is necessary to accurately describe
the property transacted in the deed. Especially in case of an immovable property,
it has to be described clearly and in detail and if required, maps or plan can also
be attached as annexures.
 Components of a Deed
5. Testimonium
It is the last part of the deed which mentions the fact that the parties have signed the
deed.
Example: IN WITNESS WHEREOF the Parties to this deed have hereunto set and
subscribed their respective hands the day and year first hereinabove written

6. Signature and Attestation

Signature and attestation is the concluding part of every deed.
All parties to the deed and persons witnessing execution of the deed should sign the
deed in presence of each other, as far as possible. Every deed is required to be signed
to obtain a legal sanction. Illiterate persons are permitted to put their thumb
impression instead of signature.
Attestation: It means an instrument entered into in presence and attested by two or
more persons as witnesses . It is defined under Section 3 of the Transfer of
Property Act,1882.
OVERVIEW OF A
GIFT
 Meaning of a Gift

 A gift is defined under Section 122 of the Transfer of Property

Act, 1882 as a transfer of certain existing movable or immovable
property made voluntarily and without consideration by one person
called the Donor, to another called the Donee, and accepted by or on
behalf of the Donee.
 Therefore the essentials of a valid gift are –
a) Gift is a transfer of an existing property (movable or immovable), by
the owner /donor to the donee.
b) It must be made voluntarily and without consideration.
c) It should be accepted by or on behalf of the donee. If the donee dies
before acceptance, the gift is void.
d) the acceptance of the gift must be during the lifetime of the donor.
 Essentials while Drafting a Deed of Gift
 A gift deed is similar to deed of conveyance , as in both cases there is a
transfer of property. The significant difference between the two is as to
consideration. A Sale deed has money consideration whereas a gift deed is
made out of natural love and affection.
 A gift deed should unambiguously describe the property gifted. A gift deed
should be of existing property only. If any future property is included it will
be void to that extent.
 A gift has to be accepted by the Donee during the lifetime of the Donor. In the
event of the Donor dying before acceptance, the gift is void.
 The Donor should execute the Gift deed freely and voluntarily i.e without any
coercion, undue influence, fraud or misrepresentation etc.
 A gift deed must include a clause that physical possession of movable or
immovable property has been given to the Donee.
 A gift may be made revocable on the happening of certain specific event,
which does not depend on the will of the donor. Such clause can be added
wherever applicable and necessary.
 Contd…

 A gift deed has to be absolute and therefore, the donor should gift the property
absolutely without reserving any right for himself in the gifted property.
 Gift can be made only by a person who is competent to contract. A minor
cannot make a gift i.e he cannot be a donor. A minor can be a donee. If the
donee is a minor, in such case his guardian can accept the gift on his behalf.
 As per Section 123 of Transfer of Property Act, 1882, for the purpose of
making gift of immovable property-
(i) Must be effected by a registered instrument. The registration must be
completed in the manner prescribed by the Indian Registration Act, 1908.
(ii) Attested by at least two witnesses.
 With regards to movable property, the gifts can be effected either by
registered instrument signed as aforesaid or by delivery of possession of
movable property.
 Contd…

 Gift under Muslim law

The provisions of the Transfer of Property Act, 1882 regarding gift are inapplicable to
Muslims. A reading of Section 129 of the Transfer of Property Act makes it clear that
Muslim Law of gifts remains unaffected by the above provisions of the Transfer of
Property Act. Muslim gifts enjoy protection from Transfer of Property Act.
A gift of an immovable property, whether oral or written, under the Muslim law will be
considered as a valid one, even if the deed in this regard has not been registered.
The three essentials of a gift under Muhammadan Law i.e. (i) declaration of the gift by
the donor; (2) acceptance of the gift by the donee and (3) delivery of possession stated
that the rules of Muhammadan Law do not make writing essential to the validity of a
gift.
An oral gift fulfilling all the three essentials makes the gift complete and irrevocable.
 donatio mortis causa

 It means “gifts of movable property made in contemplation of death”. It is

defined under S. 191 of the Indian Succession Act, 1925
 A gift is said to be made in contemplation of death where a man, who is ill
and expects to die shortly of his illness, delivers, to another the possession of
any movable property to keep as a gift in case the donor shall die of that
illness.
 Such a gift may be resumed by the giver; and shall not take effect if he
recovers from the illness during which it was made; nor if he survives the
person to whom it was made.
Example:
A, being terminally ill, and in expectation of death, delivers to B, to be
retained by him in case of A’s death - a watch and some jewellery. A dies of the
illness during which he delivered these articles to B. B is entitled to the watch
and the jewellery.
 Gift GIFT DEED (draft) (immovable property)

This Deed of Gift is made and executed on this 4th day of October, 2022 at Pune

BY

Mr. ABC, Age: 45 years, Occupation: Service, residing at Flat no.20, Ashiyana Apartments,
Erandwane, Pune-411004 ,hereinafter referred to as the “Donor” (which expression shall
unless repugnant to the context or meaning thereof shall be deemed to mean and include all
his heirs, legal representatives, executors, administrators and assigns )

IN FAVOUR OF

Mr. XYZ ,Age: 21 years, Occupation: student, residing at Flat no.20, Ashiyana Apartments,
Erandwane, Pune-411004,hereinafter referred to as the “Donee” (which expression shall
unless repugnant to the context or meaning thereof shall be deemed to mean and include all
his heirs, legal representatives, executors, administrators and assigns)
 Contd……..

WHEREAS-
(i) The Donor is the absolute and sole owner of the immovable property
bearing Plot no. 75, Survey No. 50, admeasuring 3500 Sq.ft and more
particularly described in detail in the schedule herein below
(hereinafter referred to as “the said Property”). The Donor is also in
physical possession of the said Property;
(ii) The Donee is the Donor’s son;
(iii) The Donor bears love and affection for the Donee;
(iv) Out of such love and affection, the Donor is desirous of gifting the said
Property to the Donee;
(v) The Donee has consented to accept the gift of the said Property.
 Contd….

NOW THIS DEED OF GIFT WITNESSES AS FOLLOWS –

1.In pursuance of intention and desire and in consideration of love and
affection which the Donor has for the Donee, the Donor out of his free
will does hereby irrevocably and without any reservation does hereby
gift, convey and transfer to the Donee the said Property together with all
rights, privileges, profits, advantages whatsoever of the said Property
TO HAVE AND HOLD same FOREVER AND ABSOLUTELY as the
owner thereof.

2. The Donor hereby assures and declares that the Donor has in himself
good right, full power and absolute authority to gift, convey and transfer
the said Property to the Donee.
 Contn…

3. The Donee hereby accepts the said Property as a gift from the Donor.

4. The Donee shall become the absolute and exclusive owner with all rights, privileges,
profits, advantages whatsoever of the said Property from the date of execution of this
deed and shall also enjoy all rights of ownership and possession therein.

5. The Donor does hereby declare and confirm that the Donor shall not have any right,
title or interest in or over the said Property or any part thereof from the date of
execution of this deed . The Donor will have no claim or demand of any nature
whatsoever in respect of the said Property or any part thereof. The said Property shall
absolutely and fully belong to the Donee.

6. The Donor has put the Donee in actual physical and peaceful possession of the said
Property on 04/10/2022 and the Donee hereby accepts and acknowledges the same.
 Contn…

7.All the title deeds/papers including previous title deed pertaining to the said
Property have been handed over to the Donee the receipt whereof is hereby
acknowledged by the Donee.

8. The Donee may get his name entered/mutated in all relevant records in
respect of and relating to the said Property.

9. The Donor hereby assures to the Donee that the Donor has a clear title to the
said Property and the same is free from encumbrances and also that the said
Property is neither a subject matter of any mortgage, charge, acquisition,
requisition nor subject matter of any dispute or pending litigation.
 Contn…

10. All the taxes, cess, charges, fees and assessments payable in respect of the
said Property have been duly paid by the Donor till the date of execution of this
deed and those accruing and becoming payable hereafter shall be borne by the
Donee.

11. The Donee shall at all times hereafter quietly and peacefully without any
obstruction or hindrance from any person enter upon, have, hold, occupy,
possess and enjoy the said Property hereby gifted to the Donee. The Donor shall
keep the Donee indemnified from and against any obstruction, objection, claim,
demand or action in respect of the possession and title of the said Property.

12. All the expenses towards stamp duty, registration charges and other
incidental expenses thereto are to be borne by the Donor.
 Contd….

SCHEDULE OF PROPERTY

All that piece & parcel of land admeasuring 3500 sq.ft bearing Survey No.
50. Plot no. 75 of the village Dhankawadi, Taluka Haveli, District Pune
lying and situated within the limits of Registration District of Pune,
Registration Sub-district of Taluka Haveli, revenue limits of Tahsil Haveli
and situated within the limits of Pune Municipal Corporation and bounded
as follows-
on or towards East by: Plot no 74
on or towards West by: Plot no 76
on or towards South by: Internal 9.14 m wide road
on or towards North by : Plot no 77
 Contd…..

IN WITNESS WHEREOF the Parties have hereunder set and subscribed their signature to this deed
in the presence of witnesses on the day and year first above written.

Sd/-
Mr.ABC
Donor

Sd/-
Mr.XYZ
Donee

Witnesses
1. _____________
2. _____________