What is Conditional Gift Deed?

A Conditional Gift Deed allows the donor to transfer property while imposing specific gift deed terms and conditions that the receiver must follow. This makes it a more flexible tool than an unconditional gift deed and gives the donor some control over how the gift is used. In this blog, we will tell you everything about a conditional gift deed.

What is the Meaning of a Conditional Gift Deed?

A Conditional Gift Deed is a legal document through which the owner of a property (the donor) transfers it to another person (the donee) with certain gift deed conditions attached. These conditions must be accepted and complied with by the donee. If the donee fails to fulfil these conditions, the gift may be revoked, or the transfer may be considered invalid.

For example, a father may gift a house to his son with the condition that it should not be sold during the donor’s lifetime. This gives the donee ownership but within limits set by the donor.

What are the Different Types of Conditional Gift Deed?

Conditional gift deeds can be classified into several types based on the nature of restrictions placed:

1. Time-bound conditions – The gift is valid only if certain actions are taken within a specified timeframe.
2. Usage-based conditions – The property can only be used for a particular purpose, like education, religious use, or residence.
3. Event-based conditions – The gift becomes valid or void upon the occurrence of a specific event, like marriage or employment.
4. Revocable conditions – The donor reserves the right to take back the property if conditions are not met.

Each type ensures the donor’s intentions are respected while giving legal effect to the transfer.

What are Essential Elements of Conditional Gift Deed?

To be legally enforceable, a Conditional Gift Deed must have:

• Clear intention of the donor to gift the property.
• Acceptance by the donee, ideally in writing, of the gift along with the attached conditions.
• Defined conditions that are reasonable, specific, and lawful.
• Registration of the gift deed with the local sub-registrar’s office as per the Registration Act, 1908.
• Stamp duty payment according to the state laws.

What Factors Make a Conditional Gift Deed Valid?

A Conditional Gift Deed will only be considered valid if:

• The conditions are not vague or impossible to perform.
• The deed is executed voluntarily, without coercion or fraud.
• The donor is the rightful owner of the property.
• The conditions do not violate public policy or law.
• The deed is registered and duly stamped.

For example, if a donor imposes an illegal condition (such as asking the donee to perform an unlawful act), the gift deed will not be legally binding.

Can a Conditional Gift Deed be Revoked?

Yes, unlike an unconditional gift, a Conditional Gift Deed can be revoked if the donee fails to comply with the conditions mentioned in the deed. Section 126 of the Transfer of Property Act, 1882 provides that a gift can be revoked if the conditions agreed upon are not fulfilled. This gives donors legal protection if their expectations are not met.

However, revocation must be done through proper legal procedure, often by approaching the court.

How to Create a Conditional Gift Deed Online? 

With eDrafter, you don’t have to go through complicated paperwork or repeated visits to legal offices. Here’s how you can easily create a Conditional Gift Deed online:

1. Visit edrafter.in and select the Gift Deed option from the main menu.
2. Fill out the online form with donor details, donee details, and the gift deed terms and conditions you want to include.
3. Make the payment through our secure gateway.
4. Our legal experts will draft the deed, process the required stamp duty, and prepare the official document.
5. You’ll receive the deed as a hard copy delivered to your address.

You can read our two details blog the first one is on Common Errors that can invalidate a Gift Deed and the other’s one is about Difference Between Gift Deed & Will because you should be know these things while creating a gift deed to transfer your love to your love one.

What are the Differences Between Conditional and Unconditional Gift Deed?

While both documents transfer ownership, the key differences are:

• Conditional Gift Deed – Transfer is subject to gift deed conditions; ownership may be revoked if conditions are violated.
• Unconditional Gift Deed – Transfer is absolute, with no restrictions or conditions. Once executed, the donor cannot revoke it.

So, if you want flexibility and protection, a conditional gift deed is the safer choice.

How eDrafter Can Help in Creating a Legally Valid Gift Deed?

At eDrafter, we specialize in preparing legal documents online, including Conditional Gift Deeds. By choosing us, you get:

• Expert drafting tailored to your specific needs.
• Inclusion of legally enforceable gift deed terms and conditions.
• Hassle-free online process without running to lawyers or stamp vendors.
• Doorstep delivery of your finalized deed.

Our experience ensures your document is both compliant with the law and practical for your personal requirements.

Conclusion

A Conditional Gift Deed is a smart way to transfer property while safeguarding the donor’s intentions. By attaching lawful and reasonable conditions, you can ensure that the gift is used as you desire. Since the process involves legal technicalities, creating it with the help of professionals is always the best route. With eDrafter, you can draft, stamp, and register your gift deed without leaving home.

Creating a conditional gift deed is more than just filling a form; it’s about securing your rights and ensuring your wishes are honoured.