• Release Deed Vs Gift Deed - Mutual uncontested Divorce

Hello,

I am going through Mutual uncontested divorce with my wife.

I have bought a flat with my money and had put her name as joint owner, she is ready to sign and co-operate in terms of taking her rights off this flat (this is also part of the consent terms that has been filed).
My lawyer is insisting on getting a release deed which will cost me 7% (6% Stamp Duty and 1% Registration) and my real estate agent is suggesting gift deed which will cost me 1% Stamp duty and 1% registration.

Agreement value of the property is 33lacs.

Since there is a huge difference in the amount I'll be paying, I want to know which is the best option for me at this stage.

My next court hearing is in the month of June (final hearing before decree).

Could you also let me know the risks involved in both Release deed and gift deed, can she create problems later on?

Thanking you in anticipation.

Best regards,
Veeral Joshi
Asked 7 years ago in Property Law
Religion: Hindu

2 answers received in 30 minutes.

Lawyers are available now to answer your questions.

6 Answers

Hi

The gift deed is the best legal option.

Comparing to release deed gift deed is minimal cost in terms of stamp duty

Just one percentàge LBT and no stamp duty ,just 200 Rupees registration charges is the current charges of gift deed in Thane district.

So it s advisable to go ahead with gift deed

Thresiamma G. Mathew
Advocate, Mumbai
1642 Answers
212 Consultations

5.0 on 5.0

Hello,

1) It is but obvious that you need to go ahead with a Gift Deed as it is an absolute transfer and costs much less in comparison to any other form of transfer.

2) In fact you have to pay only 1%of the Agreement Value which is LBT and Rs.200 as registration charges. The agent is taking his cut. Take help from another agent to get the right figures.

3) In any case be assured that a Gift Deed registration is better of the two options to get the 50% transferred to your name.

S J Mathew
Advocate, Mumbai
3561 Answers
175 Consultations

5.0 on 5.0

1)release deed bywife in favour of husband would not cost you 7%

2) release deed by wife in favour of husband would attract nominal stamp duty in mahrashtra of Rs 200 only as per amendment to stamp act 2015

3)similarly gift deed would attract Rs 200 stamp duty

4) once release or gift deed is executed duly stamped and registered wife cannot create problems later

Ajay Sethi
Advocate, Mumbai
95197 Answers
7607 Consultations

5.0 on 5.0

Dear Concerned,

Both of the deeds have similar kind of end result but to save on taxes you can go ahead and your wife can gift her share to you and you will be paying less of Stamp Duty and registration charges. Once done you can get the property mutated on your name only.

Best of Luck

Atulay Nehra
Advocate, Noida
1309 Answers
58 Consultations

5.0 on 5.0

1.Please Note the effect or result of both the deeds are same. However since the stamp duty of release deed is much higher than the gift deed it is not advisable to go for the release deed.

2. Accordingly go for the gift deed and forget about the release deed.

Devajyoti Barman
Advocate, Kolkata
22920 Answers
497 Consultations

5.0 on 5.0

Agreement value of the property is 33lacs.

Since there is a huge difference in the amount I'll be paying, I want to know which is the best option for me at this stage.

Being a joint purchaser/ owner of the property, it is advisable that she executes a registered gift settlement deed in your favor instead of registered release deed.

The gift deed will suffice the requirement.

Could you also let me know the risks involved in both Release deed and gift deed, can she create problems later on?

If it is a registered document, then she cannot challenge the gift deed without any valid reasons in the court at a later date.

T Kalaiselvan
Advocate, Vellore
85398 Answers
2235 Consultations

5.0 on 5.0

Ask a Lawyer

Get legal answers from lawyers in 1 hour. It's quick, easy, and anonymous!
  Ask a lawyer