Is B an agriculturist ?

A can execute gift deed in favour of B provided that B is an agriculturist

3) If B is an agriculturist then land can be converted into NA developed and sold

1.Do not go for any long time agreement.

2. If the sole reason of B to purchase this flat is for you then once he buys it you can make a exchange deed whereby you give your land and he gives his flat provided the flat is not kept as mortgage with the bank.

3. Once deed of exchange is made both of you becomes exclusive owner of the exchanged land and can do whatever you want with it.

Dear Sir,

The law accepts exchange deeds called gift deeds but be aware that such transactions should not violate any law of State or make the State put in loss of revenue. It is mutual understanding be sure that both properties are self acquired properties and there must be MoU between them.

This arrangement can be made just to take care of one thing that in Maharastra agriculture land can be only transfer red to an agriculturist so if B is agriculturist the land can be transferred to him otherwise first it has to be converted to NA then it has to be transferred.

AND better then preparing two gift deeds a single exchange deed can be prepared where in Mr. A IN Lieu of flat transfer some land to Mr. B in single deed.

If proper exchange following all condition is registered then B can sell.the land further or can develop.(keep the agriculturist and conversion rules in mind.)

1. Gift of immoveable property can be made even to a stranger.

2. Only difference between gift to a relative and gift to stranger is the amount of stamp duty on gift deed

3. For gift to a stranger, full stamp duty @5% of market value of property will become payable

4. Instead of gift, I suggest A can sign a exchange deed with B.

5. First calculate market value of land of A. Then exchange a portion of land with B for his flat after deducting the EMIs which will have to be paid to bank. The loan can then be taken over by A and he can pay the EMIs.

6. In this way A will get the flat and B gets the land (only portion of land corresponding to the down payment he paid to bank).

7. The land will need to be subdivided. That is the portion to be given to B will need to be demarcated and separated from the rest of the land.

8. B can develop the land only after obtaining NA permission.

9. Bank NOC will be needed for above transaction.

10. Bear in mind that a gift is without any consideration, whether money or property. So if you wish to give your land to B against his flat, then that will amount to an exchange. The consideration in this case for getting the flat will be the portion of land which A will give to B. So instead of money, A gives his land to B for B's flat. That cannot be a gift.

This is my response to you:

1. A gift deed is only valid if it is made in favour of a close relative otherwise it is in the nature of a sale deed;

2. So it is better that you make personal written agreement/arrangement to serve your purpose;

3. You can add the necessary clauses and do the payment on specified dates etc;

4. You can also decide if there is dispute what should be the remedy, arbitration clause etc.;

5. As per your concerns you must make a personal agreement;

6. Once the agreement clauses specify the activities or roles A and B can play with respect to their share of the land.

1. Yes it is legal to do so.

2. If conditional use of land is being given then he can not develop the land otherwise if the land is being given to him he can sold or use the land.

Regards

Dear Client,

Without consideration paid, Gift is valid. Above proposition is valid but no mention of such exchange in Gift Deed,Also make sure that after loan paid, mind of B not change.

Ais gifting his landed property to B and B is going to gift th flat to A by a separate registered deed.

There is no problem by both executing the deeds separately in their individual capacity as both are having clear and marketable title to their respective properties.

this is not a gift agreement but it will called as exchange agreement between the two which is very much valid

Yes he can gift the said agricultural land but the buyer should be converted to NA land for doing construction.

1) This type of contracts are not acceptable, because its not given consideration to any one.

2) Instead of that A can sell land and B can pay Flat as consideration. Now it depends upon A that how much land he has to sell, show the selling transcations to the bank and B will pay the EMI for purchase of land. SBI provides tbe agricultural land loan.