There are 3 ways to transfer a property. Even if you are the sole owner of the property, it is necessary to pay tax when transferring your property to another person, as the transaction is likely to bring profit to the seller. Three types of property transfer include Sale Deed, Gift Deed and Relinquishment Deed.
Sale Deed
A sale deed is the actual transfer of property ownership. The sale deed contains information about both the parties (buyer and seller), their ages, addresses and other details. The sale agreement specifies the terms and conditions under which the property will be transferred. A sale deed gives rights and interests of the property to the owner.
Sale Deed Benefits
It is an easy way to transfer property. A registered sale deed is proof that you have sold your property. This helps prevent counterfeiting and fraud as the transaction information is in the public domain.
Relinquishment Deed
If you are a co-owner in a property and want to give up your rights in that property, a quitclaim deed is the best way. As with a gift deed, a transfer is irrevocable even if there is no exchange for money. It should be registered and attested by two witnesses. There are no concessions or tax benefits for relatives in respect of stamp duty.
Gift Deed
Under the Transfer of Property Act, a gift deed becomes effective only after it is registered in the office of the Registrar or Sub-Registrar. After registration of gift deed, transfer of property is immediate.
You can use the following method to draft a gift deed
*Enter complete details of the property for which the deed is being executed
*The gift deed should have two witnesses and their signatures.
*Gift deed should be printed on stamp paper after payment of amount. After doing that, it should be registered in the office of Registrar or Sub-Registrar.
Documents required for registration of gift deed
*Original Gift Deed
*ID Proof like Aadhaar Card, Driving License etc
*Sale deed to prove ownership of donor
*Passport size photograph
*ID proof of witnesses
*Address proof of witnesses
