A Gift Deed is a legal document that facilitates the transfer of ownership of a property or asset from one person, known as the donor, to another person, known as the donee, without any exchange of money. This document serves as a proof of the giver’s intention to give the property willingly and without any future claims on it. The Gift Deed is a crucial legal instrument used to formalize the transfer of gifts, ensuring transparency and legality in the process.
The format of a Gift Deed typically includes essential details about the donor, the donee, and the property being gifted. It outlines the terms and conditions, if any, attached to the gift, and often includes clauses specifying the acceptance of the gift by the donee. Additionally, the document may incorporate clauses related to any liabilities, taxes, or responsibilities associated with the gifted property.
To ensure the validity of the Gift Deed, it is important to adhere to the legal requirements and regulations specific to the jurisdiction in which the transfer is taking place. Signatures of both the donor and the donee, along with the presence of witnesses, further authenticate the document.
Overall, the Gift Deed format serves as a comprehensive and legally binding record of the transfer of ownership, safeguarding the interests of both the donor and the donee in the process of gifting. It is advisable to seek legal counsel when drafting or executing a Gift Deed to ensure compliance with local laws and to address any specific conditions or concerns related to the transfer.
A Format of Gift Deed is as follows:
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GIFT DEED |
This Deed is made this [Date] at Noida by and
Between
Mr. __________ son of ___________ resident of _______________ (hereinafter called the Donor, which expression shall mean and include his/her legal heirs and assigns) of the First part;
AND
Mr. _________ daughter of ________ resident of __________________ (hereinafter called the Donee, which expression shall mean and include his/her legal heirs and assigns) of the Second part;
WHEREAS the Donor is an exclusive lawful owner in possession of _______ number of fully paid shares (the “Shares” in COMPANY NAME a company incorporated under the Companies Act, 2013 (The Company). The detail of the Shares along with their denomination and folio numbers is given at annex A to this Deed.
And WHEREAS the Donee is the real _________ of the Donor and out of the his/her love and affection of the Donee, the Donor has agreed to transfer the Shares unto the Donee along with all that rights, title and interest in the Shares by way of unconditional Gift, which has been accepted by the Donee.
NOW THIS GIFT DEED WITNESSETH AS UNDER
1. That the Donor out of natural love and affection for the Donee, of his/her own free will and without any pressure, undue influence or coercion from any side and without any monetary consideration but of sheer love and affection, doth hereby transfer, convey, assign the Shares in the Company, along with all the rights, title, interest and privileges whatsoever appurtenant to the Shares to have and to hold the same unto the Donee, absolutely and forever.
2. That the Donor hereby assures the Donee that the Shares hereby gifted are free from all sorts of encumbrances such as prior sale, gift, pledge, and disputes etc.
3. That the Donor has handed over the physical possession of all the scrips of the Shares unto the Donee as per annexure-A hereof, which the Donee hereby acknowledges as having received unconditionally.
4. That now the Donor admits that henceforth he/she has been left with no right, title, interest or concern of any nature whatsoever in the Shares and the Donee has become the absolute owner thereof by this Deed, who shall be fully competent to use and enjoy the Share or transfer or alienate the same to anyone by way of sale, gift, pledge or otherwise to anyone in the manner he/she likes, without any claim, demand and objection by the Donor and his/her other heirs and successors.
5. That the Donor hereby warrants that the Shares are free and clear of all pledges, security, interest, liens, charges, encumbrances, equities, claims, options, or limitations affecting the ability of the Seller to vote such Sale Shares or to transfer such Sale Shares or instruments to the Buyer and such Shares have been validly authorized and issued and are fully paid.
6. The Donor has not entered into any contract(s), arrangement(s) or engagement(s) with any third party/parties or done any acts which may at a later stage lead to any material liabilities for the Company other than the acts done by them in the usual and ordinary course of business.
7. The Donor has full legal right, power and authority to enter into, execute and deliver this Deed and to perform the obligations, undertakings and transactions set forth herein, and this Deed has been duly and validly executed by the Donor and constitutes his legal, valid and binding obligation, enforceable against him in accordance with its terms.
8. The Donee shall have the absolute right to get the transfer of the Shares transferred in his/her name in the Company and to do all acts and deeds to effect such transfer as per the applicable Law.
IN WITNESS WHEREOF, the Donor and the Donee have signed this Gift Deed at the place and on the date first mentioned above in the presence of the witnesses.
Name
DONOR
Name
DONEE
Witnesses
1._______________
2._________________
Annexure-A
SCHEDULE OF THE SAID SHARES
| Sl. No. | Certificate No. | Name of Certificate Holder | Distinctive Number | No. of Equity Shares |
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