Common Errors that can invalidate a Gift Deed

Table Of Content

• Can a gift deed be declared as invalid?
• Common mistakes that can invalidate a Gift deed
• What if a gift deed is declared as Invalid?
• Is an unregistered gift deed valid?
• Conclusion

Gifting is the act of presenting property to loved ones as a token of appreciation. According to Indian law, you are free to give your property to anybody you like. When giving a gift, the giver gives the “donee” ownership of a piece of property without expecting anything in return.

However, it is possible for someone to periodically second-guess their decision to offer a pricey item as a present. For a number of reasons, including the recipient’s inability to keep his word or refusal to accept the Gift, the giver has the right to cancel the gift transaction. We shall read about every possible reason why a gift deed could be canceled in this blog.

Can a gift deed be declared as invalid?

The gift deed might be contested in court if it is not executed and registered in compliance with legal requirements, in which case it is invalid. If either party to the gift was unable to enter into a contract, the gift deed can be contested in court and is void. The Gift Deed must be signed by both the Donor & Donee it shows the consent of both parties. Additionally, Fraud, undue influence and incapacity of the donor can also declare an Invalid gift deed.

What are the common mistakes that can invalidate a Gift deed?

The common errors in gift deeds which can make a Gift Deed Invalid or the grounds to challenge a gift deed are as follows:

1. There are chances that the Donor might be forced into making a Gift Deed and do not have the intention of doing so. The donee might use any kind of threat or reason to get the Gift deed.
2. The Donee must accept the Gift Deed. It is also one of the reasons for invalid Gift Deeds. Failure of acceptance can invalidate the Gift Deed.
3. In order for the ownership to transfer, it must be done so physically or symbolically. The deed becomes void if this is not done. The donation deed may be contested if the donor was duped or improperly influenced.
4. The gift deed could be contested if it can be shown that the donor was coerced or improperly influenced, or that they were mentally incompetent at the time of gifting.
5. The gift deed will be deemed invalid if it was created by fraud or was forgeried. Gift deeds for immovable property (such as land or buildings) frequently need to be registered with the relevant government agency. If you don’t, the deed can be void.
6. A gift deed cannot be used to transfer property for nefarious ends or to get out of obligations to the law. The conditions of the donation should be straightforward and obvious. Any ambiguity can result in disagreements or objections to the deed’s legality.

It is advised to seek legal advice from a licensed attorney who is knowledgeable about the rules and laws of the relevant jurisdiction in order to ensure that a gift deed is valid and enforceable.

What if a gift deed is declared as Invalid?

If a Gift Deed is declared as Invalid then the most simple way is to re-make a new one with all the concern points kept in mind. As mentioned above the grounds to challenge a gift deed can take place. To avoid that your Gift deed must be well drafted. There is no point in correcting an Invalid gift deed because it cannot be corrected.  Once it has become an Invalid document then there is no turning back.

Is an unregistered gift deed valid?

An unregistered Gift Deed is not considered as invalid but it is recommended to get it registered for the authenticity of the Deed. Legally speaking, a gift deed that has not been registered is invalid.

Every immovable property must be registered if its worth is greater than Rs. 100 or Rs. 1000. Even if the unregistered gift deed is valid, you can cancel it by bringing a lawsuit in civil court for its cancellation. If a gift deed is not registered and has no legal value, the Registration Act of 1908 is not relevant.

If you are one of those people who think that gift deeds and wills are the same documents, so you make a huge mistake. but don’t worry, through this amazing blog information. Now all your doubts about the gift deed vs. will will be clearer.

Conclusion

Unless the donee got the gift deed by deception, extortion, misrepresentation, or undue influence from the donor, it cannot be canceled or invalidated. Drafting Gift Deed can be done by Online websites too. You do not require a Lawyer or an advocate for that but a trustworthy site. eDrafter provides the authentic way to your Gift deed with all the customization you need.