LEGALLY SPEAKING: Transfer of Property: Sale Deed or Gift Deed or Will or Relinquishment Deed.

Source: Online TOI 

Sale deed or gift deed – which is better when transferring property? Do you know the difference between a relinquishment deed and will? Let our experts decode different types of property-related legal jargon

Transfer of property is an act of conveying property from one person to another, in present or future. According to Section 8 of the Transfer of Property Act 1882, by transferring property, transfer or transfers all rights in a property. The four modes of transferring ownership of the property include – sale deed, gift deed, relinquishment deed and will.

HOW TO CHOOSE THE MODE OF TRANSFER:

The mode of transfer of an immovable property will depend upon the nature of the transfer. “In case of transfer for monetary consideration, sale deed is the only method, which can be adopted. However, in case a property is to be transferred without any monetary consideration and out of natural love and affection, the transfer should be done through a gift deed. A relinquishment deed can be executed to effectuate a family settlement. Also, any transfer of property pursuant to a family settlement and partition of a Hindu Undivided Family (HUF) does not attract income tax liability. Lastly, a will should be executed only when the grantor does not wish to give away the property inter-vivos and instead desires that the property should stand bequeathed to the legatee only upon death of the testator,” mentions Mukesh Jain, corporate lawyer and founder, Mukesh Jain & Associates.