Sale of the property received as a gift

Sir/madam, I had a shop gifted from my uncle by registered gift deed but the original papers were not transfered to me,now after his demise can I sell this shop to anybody or there may have some issue if I don't have original papers,but I had gift deed registered with me. Please guide.

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The essential elements of a valid gift are:

  • The parties to a gift are the donor, who makes the gift and the donee who accepts the gift. The donor must be a person who is competent to contract and authorized to transfer the property.
  • The gift must be made of existing movable or immovable property capable of being transferred.
  • The gift must be made with free consent.
  • The gift is without consideration.
  • The donor is competent to create an absolute interest in favor of donee.

Section 123 of Transfer of Property Act, 1882 states that for the purpose of making a gift of immovable property, the transfer must be effected by a registered instrument signed by or on behalf of the donor, and attested by at least two witnesses. So, registration is necessary in all cases of the gift of immovable properties and title cannot pass without there being a registered deed of gift. In the case of Bhagatrai  v Ghanshyamdas, AIR 1948 Nag326,it was held that where a gift has been effected by a registered instrument duly attested and the gift has been acted upon by the donee, the title legally passes to the donee and cannot be defeated by any intention of the donor to the contrary.

So, in the present case, by way of registered gift deed of the immovable property, the title of the shop has validly passed from uncle to Mr.Jai Kumar. Since he is the owner now, he can make the transfer of his shop in favor of the third party.

Answered on September 5, 2016.
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In the instance matter , since your uncle gifted the property to you , if it is not a conditional gift then you can sell your property

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