A Gift Deed in the Title Chain: What Bengaluru Buyers Should Check Before Paying

The seller's title deed is not a sale deed. It is a gift deed, from a parent, grandparent or relative, and the flat in north Bengaluru has never changed hands for money. This can turn up in a resale chain, and it raises a fair question: is a gifted title as good as a purchased one? Chapter VII of the Transfer of Property Act, 1882, Sections 122 to 129, sets out when a gift of immovable property is valid, when it can be undone, and how a later buyer is protected.

This guide explains those rules from a buyer's side and lists what to check in the gift deed before you pay. It is general information, not advice on any specific title.

The short answer. Under Section 122, a gift is a voluntary transfer of existing property without consideration, accepted by the donee during the donor's lifetime while the donor is still capable of giving. Under Section 123, a gift of immovable property must be made by a registered instrument signed by or for the donor and attested by at least two witnesses. Section 126 allows revocation only on an agreed event outside the donor's will, or where a contract could be rescinded, and says the section does not affect "the rights of transferees for consideration without notice." The trade-off: a properly made, accepted and registered gift gives the donee a title they can sell, but a defect in acceptance, attestation or revocation terms can unsettle it, so the gift deed itself needs as much scrutiny as any sale deed.

What makes a gift of property valid?

Four elements in Section 122, and a formal deed under Section 123. Section 122 defines a gift as "the transfer of certain existing moveable or immoveable property made voluntarily and without consideration, by one person, called the donor, to another, called the donee, and accepted by or on behalf of the donee."

For a buyer checking a gifted title, that means looking for existing property, a voluntary transfer, no consideration, and acceptance. On form, Section 123 says: "For the purpose of making a gift of immoveable 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." A gift of a flat that is not registered, or not attested by two witnesses, does not meet that requirement.

The property must also exist. Section 124 says a gift comprising both existing and future property is void as to the future property. A deed that purports to gift a flat not yet built, or property the donor did not yet own, needs careful legal reading before you rely on it.

Why does acceptance by the donee matter?

Because a gift is not complete without it, and timing is strict. Section 122 says acceptance must be made during the lifetime of the donor and while the donor is still capable of giving. It adds: "If the donee dies before acceptance, the gift is void."

Acceptance can be shown in different ways, and the Act does not prescribe a single form. For a buyer, the practical evidence is whether the donee signed the deed or otherwise accepted it during the donor's lifetime, and whether the donee then dealt with the property as owner, for example by getting municipal records changed and paying property tax. Ask your lawyer which evidence of acceptance is present in the chain.

Section 125 adds a rule for gifts to several people: a gift to two or more donees, of whom one does not accept, is void as to the interest that person would have taken. If a flat was gifted jointly to siblings and one did not accept, the title to that share needs checking.

Can a donor take back a gifted flat?

Only in limited cases. Section 126 says the donor and donee "may agree that on the happening of any specified event which does not depend on the will of the donor" the gift shall be suspended or revoked. A gift the parties agree shall be revocable wholly or in part at the mere will of the donor is void to that extent.

The Act's first illustration shows a valid condition: A gives a field to B, reserving, with B's assent, the right to take it back if B and B's descendants die before A. If B dies without descendants in A's lifetime, A may take the field back. A gift deed with a similar clause in your chain is a point to raise with your lawyer.

The section adds that a gift may also be revoked "in any of the cases (save want or failure of consideration) in which, if it were a contract, it might be rescinded." It then says: "Save as aforesaid, a gift cannot be revoked."

For a buyer, the line that matters most is the last one in Section 126: "Nothing contained in this section shall be deemed to affect the rights of transferees for consideration without notice." A buyer who pays for the flat without notice of a ground for revocation has that protection. A buyer who knew of a dispute, or ignored obvious warning signs, may not.

Can other laws affect a gifted title?

Yes. The Transfer of Property Act is not the only law that can touch a gift. Our earlier reports on a release deed cancelled under the senior citizens' maintenance law and on a disputed gift deed and a later buyer show how family transfers can be challenged after the fact.

Section 129 also says nothing in this Chapter "shall be deemed to affect any rule of Muhammadan law." If the gift in your chain was made under personal law rules rather than by a registered deed, ask your lawyer how that law treats it.

Section 128 covers a narrower case. Where a gift consists of the donor's whole property, the donee "is personally liable for all the debts due by and liabilities of the donor at the time of the gift to the extent of the property comprised therein." If the donor gave away everything, ask whether the donor had debts at the time.

Section 127 deals with burdened gifts. Where a single transfer to the same person covers several things, one of which carries an obligation, the donee "can take nothing by the gift unless he accepts it fully." If a gifted flat came with an outstanding loan or other obligation, the donee who accepted it took it with that burden, and a buyer should see how it was cleared.

What should a Bengaluru buyer check before buying a gifted flat?

The deed, the people and the period since the gift. Use this list with your lawyer:

1. Get a certified copy of the registered gift deed and confirm it is signed for the donor and attested by two witnesses.
2. Check for evidence that the donee accepted during the donor's lifetime.
3. Read the deed for any clause allowing suspension or revocation, and on what event.
4. If the gift was to several donees, confirm each accepted, and that all who hold a share join the sale.
5. Ask whether the donor or any family member has challenged or tried to cancel the gift.
6. Ask whether the gift was of the donor's whole property and whether the donor had debts then.
7. Run encumbrance and litigation searches covering the period before and after the gift.

Is a gift deed title weaker than a sale deed title?

Not by itself. A gift that meets Sections 122 and 123 transfers the property to the donee, who can then sell it. The differences are in what can go wrong: acceptance, attestation, revocation terms and family challenges are specific to gifts, and they leave fewer paper trails than a sale with a price paid through a bank.

That is why a careful buyer treats the gift deed as a link in the title chain to be tested, not a formality to be skipped. Documented checks also support your position as a transferee for consideration without notice under Section 126. If the donor is alive, ask your lawyer whether a written confirmation from the donor would help, especially where the deed contains a revocation or suspension clause.

Frequently asked questions

What makes a gift of a flat legally valid?

Section 122 of the Transfer of Property Act requires a voluntary transfer of existing property without consideration, accepted by the donee during the donor's lifetime. Section 123 requires a gift of immovable property to be made by a registered instrument signed by or for the donor and attested by at least two witnesses.

Is a gift void if the donee dies before accepting it?

Yes. Section 122 says acceptance must be made during the lifetime of the donor and while the donor is still capable of giving, and that if the donee dies before acceptance, the gift is void. Buyers should look for evidence of acceptance in the title chain.

Can a donor revoke a registered gift deed?

Only in limited cases. Section 126 allows suspension or revocation on an agreed event not dependent on the donor's will, or where a contract could be rescinded, other than for want of consideration. Otherwise, the section says, a gift cannot be revoked.

Is a buyer protected if a gift is later revoked?

Section 126 says nothing in that section affects the rights of transferees for consideration without notice. A buyer who paid for the property without notice of the revocation ground has that protection, which is why documented title checks matter before purchase.

This article explains provisions of the Transfer of Property Act, 1882 for information only and is not legal advice. Have a lawyer review any gift deed in your title chain.

Last updated 2026-11-10. PropNewz Team.