A Gift Deed is a legal instrument that facilitates the voluntary transfer of ownership of property from one individual (the donor) to another (the donee) without any monetary consideration. This transfer is typically motivated by affection or goodwill. The Gift Deed must be signed by both parties and attested by at least two witnesses. Registration of the deed is mandatory and applicable stamp duty varies by state. For instance, in Karnataka, the stamp duty for a Gift Deed is Rs. 5,150.
In contrast, a Release Deed is employed when a co-owner of a property wishes to relinquish their share in favor of another co-owner. This legal document effectively eliminates the releasing party’s claim to the specified portion of the property, thereby consolidating ownership. A Release Deed can be executed with or without monetary consideration. In Karnataka, the stamp duty for a Release Deed is Rs. 5,000.
Key Differences Between Gift Deed and Release Deed:
Ownership Structure:
- Gift Deed: Applicable when a sole owner transfers complete ownership to another individual.
- Release Deed: Applicable when one co-owner relinquishes their share to another co-owner.
Consideration:
- Gift Deed: No monetary consideration is involved; the transfer is purely out of love or affection.
- Release Deed: May involve monetary consideration, depending on the agreement between parties.
Stamp Duty:
- Gift Deed: Stamp duty rates vary by state; in Karnataka, it is Rs. 5,150.
- Release Deed: Stamp duty rates vary by state; in Karnataka, it is Rs. 5,000.
In summary, while both Gift Deeds and Release Deeds are legal instruments used to transfer property rights, they serve different purposes and are applicable under distinct circumstances. A Gift Deed is suitable for transferring ownership without consideration, typically among family members, whereas a Release Deed is appropriate for relinquishing a co-owner’s share, potentially with consideration.
Need Assistance with Registration?
In Bangalore, we provide assistance to register Gift Deed and Release Deed. To opt for our service, please write to us at pgnproperties@gmail.com or WhatsApp us at +91 – 97424 79020.