DELHI- GURUGRAM

An Agreement to Sell is a legally binding document where the seller agrees to transfer the ownership of a property (such as land, house, or any other real estate) to the buyer for a specified price in the future, subject to certain conditions. This agreement is different from a Sale Deed in that it represents a promise to sell, not an actual transfer of ownership.

1. Parties Involved: The buyer and seller, who agree on the terms and conditions of the sale.
2. Property Description: The property being sold is described in detail, including its address, boundaries, and other relevant details.
3. Consideration: The agreed-upon price for the property and any payment terms.
4. Timeframe: The date or timeline within which the sale will be completed.
5. Conditions: Any terms and conditions that need to be fulfilled, such as payment of the balance amount, clearance of any dues, etc.
6. Possession: The buyer may or may not take possession of the property at the time of the agreement.
7. Intention to Execute Sale Deed: It should clearly state that the Agreement to Sell will be followed by the execution of a Sale Deed when the conditions are met.

Parties:

• Seller: Mr. A
• Buyer: Mr. B

Property:

• House located at 123, XYZ Road, Delhi.

Agreement Details:

• Mr. A agrees to sell the house to Mr. B for ₹50,00,000.
• Mr. B has paid ₹20,00,000 as an advance.
• The remaining ₹30,00,000 will be paid on or before 30th December 2024.
• The possession of the property will be handed over to Mr. B on full payment.
• The sale will be finalized by executing a Sale Deed once the full payment is made.

Conditions:

• Both parties agree that the property is free from any encumbrances, and Mr. A will clear all dues before the sale.

Governing Act:
An Agreement to Sell is governed by the Indian Contract Act, 1872, as it is a contract between the buyer and the seller. The agreement must fulfill the general principles of contract law, including offer, acceptance, lawful object, and consideration.

Additionally, once the conditions of the Agreement to Sell are fulfilled, a Sale Deed is executed, transferring the title of the property.

1. Not Transfer of Ownership: An Agreement to Sell is not the same as transferring ownership. Ownership is only transferred when the Sale Deed is executed.
2. Legal Validity: An Agreement to Sell can be enforced in a court of law if the seller fails to execute the Sale Deed after receiving the full payment.
3. Stamp Duty: Though an Agreement to Sell requires signing on a non-judicial stamp paper, it is not subject to the same stamp duty as the Sale Deed. However, it is still legally binding.

1. Indian Contract Act, 1872: This Act governs the principles of contracts in India, including the Agreement to Sell. The provisions regarding Offer and Acceptance (Sections 2 and 7), Consideration (Section 25), and Breach of Contract are applicable here.
2. Transfer of Property Act, 1882: Though the sale of property is covered under the Transfer of Property Act, an Agreement to Sell does not transfer ownership until the Sale Deed is executed.

In conclusion, an Agreement to Sell is an essential preliminary document in property transactions, outlining the terms and conditions before the final sale is concluded through a Sale Deed.

A General Power of Attorney (GPA) is a legal document in which a person (the principal) gives another person (the agent or attorney) the authority to act on their behalf in a variety of matters. The authority granted is broad and covers all activities related to the principal’s affairs.

Example:
Let’s say Vinod Kumar (Principal) is going out of the country for work. He gives a General Power of Attorney to Anil Singh (Agent), granting him the authority to handle all of Vinod’s property and financial matters, including signing documents, handling bank accounts, or selling property on his behalf.

• Vinod Kumar gives Anil Singh the authority to act in all matters related to his property.
• Anil Singh can sign documents, make decisions, and manage property on behalf of Vinod.
• The power granted is not limited to a specific task or time and can be used for multiple purposes.

A GPA allows the agent to make decisions regarding a wide range of activities, but it is not limited to a specific action like selling property; the agent has general authority.

Governing Act:
A General Power of Attorney is governed under the Indian Contract Act, 1872, and the Power of Attorney Act, 1882. The document must be signed by both parties and, in some cases, notarized to make it legally valid.

Definition:
A Special Power of Attorney (SPA) is a legal document in which a person (the principal) authorizes another person (the agent) to perform a specific task or act on their behalf in a particular matter. Unlike a GPA, the authority granted in an SPA is limited to one specific transaction or activity.

Example:
Let’s say Suresh Gupta (Principal) owns a plot of land and needs to sell it but is unable to do so personally. He gives Ravi Yadav (Agent) a Special Power of Attorney to sell the plot of land on his behalf.

• Suresh Gupta gives Ravi Yadav the power to sell his plot of land.
• Ravi Yadav can only sell the plot and cannot act on behalf of Suresh in any other matter, such as managing his bank account or other property.
• The power granted is limited to selling the land and does not extend beyond that specific task.

An SPA is often used for single or specific transactions, such as the sale of property, signing of contracts, or handling legal matters that do not require a broad scope of authority.

Governing Act:
A Special Power of Attorney is governed under the Indian Contract Act, 1872, the Power of Attorney Act, 1882, and specific rules regarding the registration of such documents. The SPA must clearly specify the task or act the agent is authorized to perform, and it is often notarized or registered for legal validity.

• GPA (General Power of Attorney) grants broad authority to the agent to act in all matters.
• SPA (Special Power of Attorney) grants authority only for specific tasks or transactions.

A Lease Agreement is a legal contract between two parties — the lessor (owner) and the lessee (tenant) — where the lessor agrees to give the lessee the right to use and occupy a property for a specified period in exchange for rent. The lease agreement typically outlines the terms and conditions under which the tenant will occupy the property, including the rent amount, duration, rights, and obligations of both parties.

Example:
Let's say Ramesh Kumar (Lessor) owns a commercial property, and Vijay Singh (Lessee) is looking to lease the property for his business. They sign a Lease Agreement under the following terms:

• Property: Commercial shop in Connaught Place, New Delhi.
• Duration: 3 years, starting from 1st January 2024 to 31st December 2026.
• Rent: Rs. 50,000 per month, payable in advance on the 1st of every month.
• Security Deposit: Rs. 1,00,000 to be paid by the lessee at the time of signing the lease.
• Use of Property: The property is to be used exclusively for running a retail business.
• Maintenance: The lessee is responsible for minor repairs and maintenance, while major structural repairs are the responsibility of the lessor.
• Termination: Either party can terminate the lease by giving 6 months' notice.

Key Points:

1. Lease Term: The lease is typically for a longer duration (1 year or more), and the terms of renewal or termination are specified.
2. Rent: The amount of rent, payment terms (monthly/quarterly), and any escalation clauses (if applicable) are clearly mentioned.
3. Security Deposit: Usually, a security deposit is paid at the time of signing the agreement. It is refundable at the end of the lease term, subject to any damages or dues.
4. Purpose of Lease: The property is to be used for specific purposes (residential, commercial, industrial, etc.), and the lessee cannot use it for any other purposes unless agreed upon.
5. Repairs and Maintenance: The responsibilities of the lessor and lessee regarding repairs and maintenance are outlined in the agreement.
6. Termination: The agreement will detail the conditions under which the lease can be terminated, including notice periods, penalties, and obligations upon termination.

Governing Act:
A Lease Agreement in India is governed under the Transfer of Property Act, 1882, specifically under Sections 105 to 117. The Indian Contract Act, 1872 also applies in cases where the lease agreement is entered into as a contract between the lessor and lessee.

• Lease Duration: Typically for a fixed term (1 year or more).
• Rent and Security: Rent payable monthly/quarterly, with a refundable security deposit.
• Maintenance: Specifies responsibilities of both parties.
• Termination and Renewal: Terms for early termination, notice period, and renewal are clearly defined.
• Use of Property: Details the allowed use of the property.

A Rent Agreement is a legally binding contract between a landlord (lessor) and a tenant (lessee) that outlines the terms and conditions under which the tenant rents the property from the landlord. It specifies the amount of rent, the duration of the rental period, the rights and responsibilities of both parties, and the terms for renewing or terminating the lease.

Example:
Let’s take the example of Sunil Verma (landlord) and Rajesh Sharma (tenant):

• Property: Residential apartment in Greater Kailash, Delhi.
• Duration: 1 year, starting from 1st March 2024 to 28th February 2025.
• Rent: Rs. 25,000 per month, payable on the 1st day of each month.
• Security Deposit: Rs. 50,000 (refundable at the end of the agreement, minus any damages).
• Use of Property: The property is to be used for residential purposes only.
• Maintenance: The tenant will bear the cost of minor repairs, and the landlord will handle the major structural repairs.
• Notice Period: A 1-month notice is required for early termination of the agreement by either party.
• Late Payment: A fine of Rs. 1,000 will be charged for rent payments made after the 5th of each month.

Key Points:

1. Duration: Rent agreements are usually for 1 year but can be extended. The terms of renewal or termination should be stated.
2. Rent: The rent is fixed for a particular period, and the tenant is obliged to pay on time. Rent can increase based on an agreement or as per local market conditions.
3. Security Deposit: A security deposit is taken to cover potential damages or unpaid rent. It is refundable at the end of the tenancy period, subject to the condition of the property.
4. Use of Property: The tenant agrees to use the property for the purpose stated in the agreement (e.g., residential, commercial).
5. Repairs: Specifies whether the tenant or landlord is responsible for minor or major repairs.
6. Termination: The agreement will include conditions for termination, including notice periods and penalties for early termination.

Governing Act:
A Rent Agreement is generally governed by the Indian Contract Act, 1872 as it is a contractual agreement. However, for residential and commercial properties in Delhi, the Delhi Rent Control Act, 1958 applies. The Rent Control Act sets the framework for regulating rent, tenancy rights, eviction, and protection against unlawful eviction for tenants.

When is the Delhi Rent Control Act applied?

The Delhi Rent Control Act is applicable when the property is located in Delhi and the relationship between the landlord and tenant falls under the scope of this act. Here are some key aspects under which the Act is applied:

1. Residential and Commercial Properties: The Act applies to both residential and commercial rented properties in Delhi unless the property is exempted under specific provisions of the Act (for example, properties owned by a government or its agencies, or where the rent exceeds a certain limit).
2. Rent Control: It regulates the amount of rent that can be charged by the landlord. The rent can only be increased under the provisions laid out in the Act, and the increase must be justified.
3. Eviction Protection: The Act provides protection against arbitrary eviction. A landlord can only evict a tenant through the courts and must have a valid reason such as non-payment of rent, damage to property, or the landlord needing the property for personal use.
4. Tenancy Agreement Terms: The Act mandates certain rights and responsibilities, such as rent control, maintenance of the property, and limitations on the eviction process.
5. Exemptions: The Delhi Rent Control Act does not apply to all kinds of rental properties. For instance:
   
   • Residential properties where the monthly rent exceeds Rs. 3,500 are exempted from the Rent Control Act and fall under the general provisions of the Indian Contract Act.
   • Properties that have been exempted by the government for a particular period or under special circumstances may also not fall under the Act.

• Rent Regulation: Limits how much rent can be charged by landlords.
• Eviction Protection: Tenants cannot be evicted without a valid court order.
• Exemptions: Applies to properties with a monthly rent below Rs. 3,500.
• Tenant Rights: Tenants are protected from arbitrary rent hikes and eviction.

A Leave and Licence Agreement is a legal contract between a licensor (owner of the property) and a licensee (the person taking the property) wherein the licensor allows the licensee to occupy the property for a specific period, under certain conditions, but without transferring any ownership rights. Unlike a lease agreement, it is not considered a transfer of interest in the property, and the licensor retains ownership and control of the property.

The agreement gives the licensee the right to use the property for a defined purpose (usually residential or commercial) without conferring any tenancy rights or interest in the property. The owner (licensor) may also terminate the agreement more easily compared to a lease.

Example:
Let’s take the example of Kavita Mehra (licensor) and Amit Verma (licensee):

• Property: Residential flat in Vasant Kunj, Delhi.
• Duration: 1 year, starting from 1st June 2024 to 31st May 2025.
• Licence Fee: Rs. 18,000 per month, payable on the 5th of each month.
• Security Deposit: Rs. 36,000 (refundable at the end of the agreement, minus any damages).
• Purpose: The property is to be used for residential purposes only.
• Termination: The licensor may terminate the agreement with a 30-day notice in case of any breach of terms. The licensee also has the right to terminate the agreement with a 30-day notice.
• Maintenance: The licensee is responsible for maintaining the property in good condition. The licensor will be responsible for major repairs.

Key Points:

1. Nature of Agreement: Unlike a lease agreement, a Leave and Licence Agreement does not transfer ownership or possession of the property. The property owner (licensor) retains control over the property, and the licensee simply has the right to use the property for the duration specified.
2. Duration: The agreement typically lasts for a short period, usually one year, and can be renewed or extended by mutual consent.
3. Licence Fee: The licensee pays a licence fee, which is similar to rent but is not regarded as rent under the law. The fee is usually less than what would be paid under a lease agreement.
4. Termination: The agreement is easier to terminate compared to a lease. Either party can end the agreement with a short notice period (usually 15 to 30 days). The licensor has the right to terminate the agreement without needing to establish a formal reason, unlike a lease where the landlord has to go through the courts for eviction.
5. Security Deposit: A security deposit is paid by the licensee, which is refundable at the end of the agreement after deducting any damages or unpaid dues.
6. Repairs and Maintenance: The agreement will specify whether the licensor or licensee is responsible for repairs and maintenance, with the licensee typically covering minor repairs.
7. No Transfer of Ownership: Unlike lease agreements, Leave and Licence Agreements do not confer tenancy rights. Therefore, the licensee does not have the same legal protection against eviction as a tenant would under a lease.

A Leave and Licence Agreement is governed by the Indian Contract Act, 1872. It does not fall under the purview of tenancy laws like the Delhi Rent Control Act, as it is not a lease agreement but a permission for use of property.

The Indian Easements Act, 1882 may also apply, as it deals with the rights of the licensee to use the property in a specific way as per the agreement.

Important Points:

• Indian Contract Act, 1872: Governs the agreement as a contract between two parties, ensuring both parties' rights and obligations are enforceable.
• Indian Easements Act, 1882: Helps establish the rights of the licensee to use the property, without conferring ownership or tenancy rights.

• Residential Use: Often used for renting out homes or apartments, where the property owner wants to give permission to use the property for living purposes without creating a lease.
• Commercial Use: Also used in commercial settings, where the owner allows the use of the property for business operations without transferring possession.

A Sale Deed is a legal document that signifies the transfer of ownership of a property from the seller to the buyer in exchange for a certain amount of money or consideration. It is one of the most important documents in the process of buying and selling property. Once the sale deed is executed, the ownership of the property is transferred to the buyer, and the seller loses all rights over the property.

A Sale Deed provides proof of ownership for the buyer and is considered conclusive evidence of the transfer of ownership of the property.

Example:
Let’s take the example of Ravi Sharma (seller) and Priya Gupta (buyer):

• Property: A residential flat in Greater Noida, Uttar Pradesh.
• Sale Consideration: Rs. 50,00,000 (Fifty Lakhs).
• Transaction: Ravi Sharma agrees to sell his flat to Priya Gupta for the agreed sum of Rs. 50,00,000.
• Date of Agreement: 1st December 2024.
• Transfer of Ownership: Upon payment of the full consideration, Priya Gupta will become the rightful owner of the flat.
• Execution of Sale Deed: Ravi Sharma will sign the Sale Deed and hand it over to Priya Gupta, and she will have the right to get the Sale Deed registered with the Sub-Registrar of the locality.
• Registration: The Sale Deed will be registered under the Registration Act, 1908 to ensure its validity and authenticity.

Key Points:

1. Transfer of Ownership: A Sale Deed transfers all rights, title, and interest in the property from the seller to the buyer, upon execution and registration. Once the deed is executed and registered, the buyer becomes the legal owner of the property.
2. Consideration: The sale price (consideration) is mentioned in the Sale Deed, and it is the amount paid by the buyer to the seller in exchange for the property.
3. Details of the Property: The Sale Deed contains detailed information about the property, such as:
   
   • The complete address of the property.
   • Boundaries and physical description of the property.
   • Area and dimensions of the property.

1. Execution: The Sale Deed must be signed by both parties (seller and buyer) in the presence of two witnesses. Both parties need to acknowledge the receipt of the sale consideration in the document.
2. Registration: To make the Sale Deed legally valid, it must be registered with the Sub-Registrar as per the Registration Act, 1908. Without registration, the Sale Deed will not be legally enforceable. Registration ensures the property title is updated in official records.
3. Clear Title: The Sale Deed should state that the seller has a clear title to the property and that the property is free from any encumbrances (such as unpaid loans, legal disputes, or other claims). This is crucial for the buyer to get a clean title and avoid future disputes.
4. No Objection Certificate: If the property is mortgaged or has any pending dues (e.g., municipal taxes, electricity bills), the Sale Deed should include a statement regarding the clearance of such dues before the property transfer.
5. Possession: The deed also mentions the date of possession of the property. This could be the same day the Sale Deed is executed or at a later date as agreed between the buyer and seller.

A Sale Deed is governed by the Indian Contract Act, 1872 and The Transfer of Property Act, 1882.

• Indian Contract Act, 1872: Governs the legal relationship between the buyer and the seller, ensuring that the contract is enforceable, valid, and binding.
• Transfer of Property Act, 1882: Specifically governs the transfer of ownership of immovable property. The Sale Deed is executed under this act, which ensures that the seller has the right to transfer the property and that the transfer complies with legal norms.
• Registration Act, 1908: The Sale Deed must be registered under this act for the transfer of property to be legally recognized and enforceable.

A Sale Deed is used in the following situations:

1. Property Sale: The primary purpose of a Sale Deed is to transfer ownership of immovable property, such as land, residential or commercial buildings, from the seller to the buyer.
2. Clear Title Transfer: It is used when the seller has full legal title to the property and is transferring ownership to the buyer, who will then become the rightful owner.
3. Real Estate Transactions: A Sale Deed is a mandatory document in any real estate transaction, especially in the case of residential or commercial property sales.
4. After Full Payment: The Sale Deed is executed only when the full consideration amount (sale price) is paid by the buyer to the seller. It marks the final step in the property transfer process.

A Will Deed is a legal document through which an individual, known as the testator, expresses their wishes regarding the distribution of their property and assets after their death. The document specifies how the testator's estate (including property, money, and other belongings) will be distributed among the beneficiaries. The will may also nominate an executor who will carry out the instructions outlined in the will.

A Will only takes effect after the testator’s death, and it can be altered or revoked by the testator at any time before their death, as long as they are of sound mind.

Example:
Let’s take the example of Ramesh Kumar (testator) and his family members:

• Testator: Ramesh Kumar, a 65-year-old retired government employee.
• Beneficiaries: His wife, Suman Kumar, and two sons, Amit Kumar and Rajesh Kumar.
• Property: Ramesh owns a residential house in Dwarka, New Delhi, valued at Rs. 1 crore, and a bank account with Rs. 10 lakhs.
• Will Content: In his Will, Ramesh expresses his desire that:
  • His wife, Suman Kumar, will inherit the house.
  • His sons, Amit Kumar and Rajesh Kumar, will inherit the bank balance equally.
  • The house should not be sold until his wife’s death, after which it should be sold, and the proceeds divided equally between his two sons.
• Execution of Will: The Will is signed by Ramesh Kumar in the presence of two witnesses, Sanjay Singh and Neha Gupta.
• Probate Process: After Ramesh's death, his family will present the Will before a court to obtain a Probate to prove its authenticity and execute his wishes.

Key Points:

1. Testator's Intentions: The primary purpose of a Will Deed is to ensure that the testator’s property and assets are distributed as per their wishes after their death.
2. Testator's Capacity: The individual making the will (testator) must be of sound mind and capable of understanding the nature of their actions. They must be at least 18 years old to make a valid will.
3. Beneficiaries: The individuals or entities to whom the testator wishes to distribute their property. This can include family members, friends, or charities.
4. Executor: A person nominated in the will who is responsible for carrying out the testator’s wishes. The executor ensures that the estate is managed, debts are settled, and property is distributed to the beneficiaries.
5. Revocability: A Will Deed can be revoked or amended at any time by the testator as long as they are of sound mind and have the mental capacity to do so.
6. Registration: While registration of a Will is not mandatory under Indian law, it is recommended. A registered Will can be more easily authenticated, reducing the possibility of disputes. If the Will is not registered, it must be signed by the testator in the presence of two witnesses who must also sign it.
7. Witnesses: The Will Deed must be signed by at least two independent witnesses who are not beneficiaries of the will. They should be present at the time of the signing to verify the testator's intentions.
8. Revocation of Previous Wills: If a testator makes a new Will, the previous Will is automatically revoked unless stated otherwise in the new Will.
9. Conditions and Restrictions: A testator can impose conditions on the inheritance, such as specifying that the property can only be inherited once a beneficiary reaches a certain age or completes a specific task.

The Will Deed is governed by the Indian Succession Act, 1925, which provides the legal framework for wills and succession in India.

• Indian Succession Act, 1925: This act regulates the inheritance laws of both testamentary (wills) and intestate (without will) succession. The act lays down rules regarding the creation, execution, and validity of Wills in India.
• Section 63 of the Indian Succession Act, 1925: This section provides the legal requirements for a valid Will. It specifies that the will must be signed by the testator in the presence of two witnesses who also sign the will. The witnesses must not be beneficiaries under the Will.
• Probate: A Will must be probated in a court for it to be legally valid. The probate process involves proving the Will in the court, which includes proving its authenticity, the soundness of the testator at the time of making the Will, and that it was made voluntarily without coercion.

A Will Deed is used in the following situations:

1. After Death of the Testator: A Will comes into effect only after the death of the testator. It serves as a guide to distribute their estate according to their instructions.
2. Transfer of Property: It is used when a person wants to decide who will inherit their property after their death. This can include movable assets (money, shares) and immovable property (land, house).
3. Ensuring Family Welfare: A Will can be used to ensure that family members or dependents are provided for after the testator’s death. It can be used to appoint guardians for minor children or ensure financial security for a spouse.
4. Charitable Purposes: A testator can use a Will to donate their property or assets to charity, ensuring that their wealth continues to benefit causes they care about.
5. Revoking Previous Wills: If a person wants to change the distribution of their estate or nominate new beneficiaries, they can execute a new Will to revoke the previous ones.
6. Disputes Resolution: A Will helps resolve disputes that may arise in the absence of clear instructions. It ensures that the assets are distributed according to the testator’s wishes, minimizing the chances of legal disputes among family members or heirs.

A Gift Deed is a legal document used to voluntarily transfer ownership of property or assets from one person (the donor) to another person (the donee) without any monetary consideration. It is an act of generosity or love where the donor gives a gift to the donee. A Gift Deed is commonly used for transferring property, money, or assets between family members, friends, or charitable organizations.

A Gift Deed must be signed by the donor and donee, and it requires at least two witnesses to validate the transaction.

Example:
Let’s take the example of Seema Kapoor (donor) and her daughter Priya Kapoor (donee):

• Donor: Seema Kapoor, a 55-year-old woman.
• Donee: Priya Kapoor, Seema’s daughter, who is 30 years old.
• Property: Seema owns a flat in Greater Kailash, New Delhi, valued at Rs. 50 lakh.
• Gift Deed Content: In the Gift Deed, Seema expresses her wish to transfer the ownership of her flat to her daughter, Priya. The document states that Seema is giving the flat as a gift to Priya out of love and affection, without any exchange of money.
• Gift Deed Signing: The Gift Deed is signed by Seema Kapoor (donor) and Priya Kapoor (donee) in the presence of two independent witnesses, Ravinder Singh and Nisha Mehra.
• Stamp Duty: The Gift Deed is executed on a non-judicial stamp paper, as per the prevailing stamp duty rates.
• Registration: The Gift Deed is registered with the local Sub-Registrar office to ensure its legality and authenticity.

In this example, Seema Kapoor has made a gift of her property (the flat) to her daughter Priya Kapoor, which will be legally transferred once the Gift Deed is registered.

Key Points:

1. Voluntary Transfer: A Gift Deed involves the voluntary transfer of property from the donor to the donee without any consideration (money). It is given out of love, affection, or as an act of charity.
2. Donor and Donee: The donor is the person giving the gift, and the donee is the recipient of the gift. Both parties must consent to the transaction, and the donor must have the legal capacity to make the gift.
3. Types of Property: A gift can involve various types of property, such as immovable property (land, house, flat) or movable property (money, jewelry, shares, etc.).
4. Irrevocability: Once the Gift Deed is executed and registered, it is irrevocable. The donor cannot take back the gift unless there is a valid reason, such as fraud, coercion, or undue influence. However, in the case of gifts to minor children or certain conditions, the donor may retain some rights.
5. Donor’s Capacity: The donor must be of sound mind and at least 18 years of age at the time of executing the Gift Deed. If the donor is not of sound mind, the gift may be challenged in court.
6. Witnesses: The Gift Deed must be signed by two witnesses, who should not be beneficiaries of the gift. They must sign the document in the presence of both the donor and the donee.
7. Stamp Duty: The Gift Deed is executed on a stamp paper of appropriate value, which varies depending on the state. The stamp duty for a gift of immovable property is generally lower than for a sale deed but is subject to the state laws.
8. Registration: While registration of a Gift Deed is not mandatory for movable property, it is necessary for transferring immovable property (like land or buildings) in India. The deed must be registered at the Sub-Registrar office where the property is located. Registration provides legal validation and helps avoid future disputes regarding ownership.
9. Tax Implications: Under Section 56(2) of the Income Tax Act, 1961, if a gift of property is made to someone other than close relatives (as defined under the Income Tax Act), it may attract tax. However, gifts made to family members are usually exempt from tax, provided they are within the permissible limits.

The Gift Deed is governed by the Transfer of Property Act, 1882 and the Indian Registration Act, 1908.

1. Transfer of Property Act, 1882:
   
   • Section 122 of the Transfer of Property Act defines a gift as the voluntary transfer of property by one person to another, without any exchange of money or compensation.
   • It lays down the legal framework for making a valid gift of movable and immovable property.

1. Indian Registration Act, 1908:
   
   • Under this act, any Gift Deed involving immovable property (such as land or house) must be registered with the Sub-Registrar of the concerned jurisdiction.
   • The Registration Act ensures that the gift is publicly recorded, providing legal authenticity and helping prevent disputes over ownership.

A Gift Deed is commonly used in the following situations:

1. Gifting Property to Family Members: It is used when a person wants to gift their property (house, land, money) to family members, such as children, spouse, or parents, without any monetary exchange.
2. Charitable Gifts: A Gift Deed can be used to donate assets or money to charity organizations or institutions, ensuring that the donor’s wishes are legally recognized.
3. Transferring Property Between Friends: A person may gift property or money to a friend as an act of goodwill or love. A formal Gift Deed is required to transfer ownership legally.
4. During Festivals or Celebrations: People sometimes use Gift Deeds to make gifts during weddings, anniversaries, or religious festivals to formalize the transfer of property or assets.
5. Tax Planning: People may use a Gift Deed to reduce estate or inheritance tax by gifting assets while they are alive. It ensures that the donee is the legal owner of the gift and avoids inheritance disputes.

The Relinquishment Deed is governed by the Transfer of Property Act, 1882 and the Indian Registration Act, 1908.

1. Transfer of Property Act, 1882:
   
   • Section 6 of the Transfer of Property Act discusses the transfer of property and the nature of rights involved in the Relinquishment Deed.
   • The relinquishment of rights in property is considered a transfer, and the deed follows the same principle of property transfer, although it does not involve any monetary consideration.

1. Indian Registration Act, 1908:
   
   • Under this act, a Relinquishment Deed involving immovable property must be registered at the Sub-Registrar office in the area where the property is situated. Registration ensures the validity and authenticity of the document, preventing disputes over the ownership or rights over the property.

A Relinquishment Deed is typically used in the following situations:

1. Inheritance and Family Settlements: It is used when family members (like siblings) decide to relinquish their share of inherited property in favor of other members, often to resolve disputes or as part of a family settlement.
2. Joint Property: In cases where property is jointly owned, a person may execute a Relinquishment Deed to give up their claim on the property, leaving full ownership with the other co-owners.
3. In Cases of Property Division: When the property is being divided between multiple owners or beneficiaries, a party may relinquish their right to a part of the property in favor of the others, allowing for a clear transfer of ownership.
4. Disposal of Property in Favor of One Party: If one co-owner wants to relinquish their share and pass it on to another party (like a spouse or child), the Relinquishment Deed formalizes the transfer.
5. Property Disputes: In some cases, to resolve disputes over property ownership or claims, one party may relinquish their rights over the property, and the deed records this action for legal purposes.