• Can I sell property given through a conditional gift deed?

Hello,

My mom was given a undivided piece of land located in Bangalore by her sister as a Gift executed through a conditional gift deed. My mom's sister has an LPG gowdown at the after-mentioned location. The condition mentioned in the Gift Deed is as follows:

1: It is agreed between the Donor and the Donee that the Gas Distribution Agency held and run by the sister will not be affected and she will be allowed to continue the above business as long as she desires to do so.

2: Donee (my mother) hereby convents with the Donor (my mom's sister) that she will not cause any hindrance or interruption to the business held by the donor. 

How do I go about selling the part of the land which belong's to my mother (with my mother's consent)? 

What is the procedure to make the above conditions null and void so that it cannot be take to the court of law?
Asked 5 years ago in Property Law
Religion: Hindu

2 answers received in 10 minutes.

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50 Answers

Your mother cannot sell the land without donor consent as donor is entitled to carry on business in said premises 

Ajay Sethi
Advocate, Mumbai
100005 Answers
8163 Consultations

You can sell a part of land after the NOC from your mother's sister. Need to check whether the same LPG godown business is running on that place  as of now.

Ganesh Kadam
Advocate, Pune
13008 Answers
267 Consultations

You need to get consent of both to sell the property without any hesitation and prejudice to provisions of law.

Ramesh Pandey
Advocate, Mumbai
2541 Answers
8 Consultations

Obtain in writing from aunt that she is vacating the premises and closing gas distribution business 

 

she has no objections to sale of property 

 

she can be witness to sale deed 

Ajay Sethi
Advocate, Mumbai
100005 Answers
8163 Consultations

Why to pay unnecessary Stamp duty and registration charges, Get NOC on LPG Agency letter head along with stamp and signature of your Mother's sister. 

Ganesh Kadam
Advocate, Pune
13008 Answers
267 Consultations

Yes, rectification deed is better option than oral communication for vacating the property in 2022.

Please go for rectification deed and registration is also necessary. 

Ramesh Pandey
Advocate, Mumbai
2541 Answers
8 Consultations

1. Is the LPG Godown still in the same location or not?.

2. Based on the answer to above question, we can arrive at the right decision.

3. Assuming that the LPG Godown is not functioning now, then the condition becomes Null and Void and your mother, being the owner of the land can sell the property, if she desires so.

4. On the other hand, assuming that the LPG Godown is functioning now, then the condition will have legal validity and your mother cannot have the authority of absolute ownership of the property.

Shashidhar S. Sastry
Advocate, Bangalore
5638 Answers
339 Consultations

Obtain in writing that mother is at liberty to sell the land as she would be shifting her business to another location 

Ajay Sethi
Advocate, Mumbai
100005 Answers
8163 Consultations

No oral agreement. Make it in writing expressly entered into between both the parties. Let her continue her business but from other location.

Ramesh Pandey
Advocate, Mumbai
2541 Answers
8 Consultations

Get an agreement done with your aunt for vacating the area in 2022.

You can file a specific performance suit against your aunt for asking her to vacate the premises before 2022 and than selling the property 

Rahul Jatain
Advocate, Rohtak
5365 Answers
4 Consultations

What she going to do with her business that is not concern, here concern is only for that particular conditional gift deed land. so take NOC from her regarding that as stated above.

Ganesh Kadam
Advocate, Pune
13008 Answers
267 Consultations

Yes, NOC with proper vacating date mention on it and signed by Donor and possession hand over date on it.

Ganesh Kadam
Advocate, Pune
13008 Answers
267 Consultations

Yes NOC will be acceptable 

Rahul Jatain
Advocate, Rohtak
5365 Answers
4 Consultations

NOC is valid for sale of property 

Ajay Sethi
Advocate, Mumbai
100005 Answers
8163 Consultations

-  As per Section 122 of the Transfer of Property Act, Gift is the transfer of certain existing movable or immovable property made voluntarily and without consideration, by one person called the donor, to another person called the donee, and accepted by or on behalf of the donee.

- Hence, for a Gift deed, Acceptance is mandatory by the donee , and such acceptance must be made during the lifetime of the donor , and if the donee dies before acceptance, the gift becomes invalid. 

- Further, Gifts that involve immovable property should be registered under the Transfer of Property Act

- It means without registration of Gift deed , the title does not pass on to the donee, 

- And further, a Conditional gift is one that is subject to or dependent on a condition.

- Further, a Conditional gift can be revoked if the recipient does not fulfil the conditions attached to the gift.

- Further, a gift is a conditional gift and it is not final until some future event occurs and if the particular event does not occur, the person making the gift has the right to get back the gift.

- Since the condition is continuing , then the said property can not be sold out , as the transfer of the property till date not taking place. 

- However, after getting the consent of the donor , and transferring the physical possession to your mother , it can be sell legally

Mohammed Shahzad
Advocate, Delhi
15859 Answers
243 Consultations

Dear sir,

1. This kind of condition is valid and cannot be declared null and void.

2. You cannot sell the property as of now.

3. You have to obtain a written consent from your aunt in form of NOC specifically mentioning that she would be vacating the property in 2022 and that she has no objection to transfer of the land thereafter. 

4. Do not rely upon any oral assurances.

5. Yes, NOC is a valid document to prove the fact of the consent. 

6. To be on a safer side you can your aunt's signatures as witness to the sale deed in favour of third person.  

Agam Sharma
Advocate, New Delhi
617 Answers
6 Consultations

It is a valid document and even admissible but it cant over rule the stamp duty and registration if necessary for such transaction

Prashant Nayak
Advocate, Mumbai
34680 Answers
249 Consultations

Since the gift deed comes with a condition, therefore, revoking the condition would mean revocation of the gift deed also. Without the consent of your aunt the same can not be done. 

Anilesh Tewari
Advocate, New Delhi
18103 Answers
377 Consultations

if she has said orally about the vacation of godown in 2022 then you may go ahead and get a rectification registered to the said effect 

Anilesh Tewari
Advocate, New Delhi
18103 Answers
377 Consultations

if the godown is transferred then the same will not have any bearing on your land 

Anilesh Tewari
Advocate, New Delhi
18103 Answers
377 Consultations

yes NOC will be considered as a valid document 

Anilesh Tewari
Advocate, New Delhi
18103 Answers
377 Consultations

Yes, noc is valid.

Swarupananda Neogi
Advocate, Kolkata
2995 Answers
6 Consultations

NOC to sell,  transfer and alienate to third party. Assurance to discontinue the service of LPG from the place. 

 

Ramesh Pandey
Advocate, Mumbai
2541 Answers
8 Consultations

1. The condition mentioned by you does not prevent you from selling the property. However, even after sale the said condition will operate with fill vigour and your mom's sister will have the right to operate her gas distribution agency.

2. During the lifetime of your mother you have no right to sell the land. She alone can sell it. Nothing stops her from executing a GPA in your favour to authorise you to sell the property for and on her behalf.

Ashish Davessar
Advocate, Jaipur
30843 Answers
982 Consultations

1. An agreement can be executed between your mother and her sister wherein the latter undertakes to vacate the property by a fixed date.

2. Rectification deed has no role here.

Ashish Davessar
Advocate, Jaipur
30843 Answers
982 Consultations

1. If she shifts her business then the gift deed will ripen into an absolute and unconditional gift deed.

2. NOC is valid.

Ashish Davessar
Advocate, Jaipur
30843 Answers
982 Consultations

NOC would be valid in 2022 unless revoked by aunt 

Ajay Sethi
Advocate, Mumbai
100005 Answers
8163 Consultations

For safeguard to the rights,interest and title of your mother , you may go for SPA by your aunt to your mother for the portion of land being used by her for LPG .That is more safer than NOC.

Ramesh Pandey
Advocate, Mumbai
2541 Answers
8 Consultations

Yes noc will be valid in 2022

Anilesh Tewari
Advocate, New Delhi
18103 Answers
377 Consultations

You cannot force aunt to vacate premises on stipulated date 

 

she can always change her mind at later stage 

Ajay Sethi
Advocate, Mumbai
100005 Answers
8163 Consultations

In NOC make the wording like indefinite period time frame.

Ganesh Kadam
Advocate, Pune
13008 Answers
267 Consultations

1. Yes, the NOC given now would be valid unless revoked by her before 2022. 

2. You can make your aunt bound by the gift only if the gift deed is rectified to unequivocally state that the property would become absolute property of your mother after XX.XX.2022. (Whatever is the date) and till this date your aunt will have only usufructuary rights (the right to use the property). 

Any other document can be revoked by her your aunt to further extend the time beyond 2022. 

Agam Sharma
Advocate, New Delhi
617 Answers
6 Consultations

Yes it's valid but relinquishment deed is more authentic and Admissible. 

Prashant Nayak
Advocate, Mumbai
34680 Answers
249 Consultations

Yes it would be valid.

Swarupananda Neogi
Advocate, Kolkata
2995 Answers
6 Consultations

Get he NOC done without any time boundation 

Rahul Jatain
Advocate, Rohtak
5365 Answers
4 Consultations

- Yes, you can get NOC for the same in the form of an undertaking . 

Mohammed Shahzad
Advocate, Delhi
15859 Answers
243 Consultations

As matter of legal fact, if it was a just a registered gift deed with the said conditions, then the gift deed is invalid.

conditional gift is valid but the conditions are void,” the bench of Justices J.S. Khehar and R.F. Nariman said in a judgment.

The court clarified that the ruling applied only to “gifts pertaining to the corpus of the property” — where the ownership passes from the donor to the recipient.

The Supreme Court vide its judgment clarified that a conditional gift with no recital of acceptance and no evidence in proof of acceptance, where possession remains with the donor as long as he is alive, does not become complete during the lifetime of the donor. When a gift is incomplete and title remains with the donor the deed of gift might be canceled.

Therefore if the possession of the gifted property is not with the donee then then the gift is incomplete, therefore without title to the property on her name, your mother cannot sell the property.

 

T Kalaiselvan
Advocate, Vellore
90202 Answers
2506 Consultations

The supreme court has with precision outlined that the conditions stipulated in the deed of a gift does not make the gift invalid and such gift shall be complete only upon fulfillment of the conditions, needless to say, that before such an instance the donor can cancel the deed of gift.

Therefore any such action that you propose to take may provoke your mother's sister and she may even cancel the gift deed, thereby you will suffer more losses.

You may wait until then.

 

T Kalaiselvan
Advocate, Vellore
90202 Answers
2506 Consultations

Let your aunt vacate the premises and handover vacant possession of the property to your mother, after which your mother will become an absolute owner with clear and marketable title to the property.

You can decide about selling the property after that.

T Kalaiselvan
Advocate, Vellore
90202 Answers
2506 Consultations

Until and unless your aunt closes down her business in the said location and hands over the possession  of the property to the donee, i.e., to your mother, the gift cannot be said to be complete.

The supreme court has with precision outlined that the conditions stipulated in the deed of a gift does not make the gift invalid and such gift shall be complete only upon fulfillment of the conditions, needless to say, that before such an instance the donor can cancel the deed of gift.

 

T Kalaiselvan
Advocate, Vellore
90202 Answers
2506 Consultations

NOC has no importance when the law is very prefect and clear in this regard. 

The position which is clarified in the instant case is with regard to the provisions effecting gift under the Transfer of Property Act, 1882 and not with regard to other personal laws on the subject.

Therefore you may request your aunt to deliver vacant possession of the property gifted to your mother in order to make the gift deed effective.

T Kalaiselvan
Advocate, Vellore
90202 Answers
2506 Consultations

A gift deed is the transfer of certain existing movable or immovable 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.

The court to reach on the conclusion on the subject relied largely on the judgment of Reninkuntla Rajamma v. K. Sarwanamma, wherein it was held that the fact that the donor had reserved the right to enjoy the property during her lifetime did not affect the validity of the deed.

The Court held that a gift made by registered instrument duly executed by or on behalf of the donor and attested by at least two witnesses is valid, if the same is accepted by or on behalf of the donee.

Such acceptance must, however, be made during the lifetime of the donor and while he is still capable of making an acceptance.

Did your mother accept the gift with the said conditions.

Where a gift deed is executed subjected to certain conditions, the satisfaction of those conditions is of utmost importance and that conditions do not make the gift void neither does reserving the right to enjoy and possess the subject property by the donor.

So instead of stepping up the legal process to suffer a great loss, you may better have patience while dealing with this case properly.

T Kalaiselvan
Advocate, Vellore
90202 Answers
2506 Consultations

1. If through NOC she relinquishes her rights absolutely then NOC will come with no cap on duration.

2. If the NOC is made irrevocable then it cannot be revoked.

Ashish Davessar
Advocate, Jaipur
30843 Answers
982 Consultations

You need to obtain permission from your aunt and with consent of both the parties i.e., your mother and aunt you can proceed.

S Srinivasa Prasad
Advocate, Hyderabad
2876 Answers
9 Consultations

You can obtain the consent of your aunt in writing and the same if named as Memorandum of Understanding, it need not be registered it will serve your purpose

S Srinivasa Prasad
Advocate, Hyderabad
2876 Answers
9 Consultations

No problem, you are concerned with the property, and with her business.  It does not make any difference.  The  issue is with regard to permission given to your mother under Gift Deed and NOC to dispose off her Gifted Share.

S Srinivasa Prasad
Advocate, Hyderabad
2876 Answers
9 Consultations

Yes, refer to above reply, it is sufficient, and that, let the MOU given by your aunt be attested by two independent witnesses who can vouch for the same if it goes to court of law.

S Srinivasa Prasad
Advocate, Hyderabad
2876 Answers
9 Consultations

Yes it is valid till 2022.  Make sure to add a clause that, her NOC is valid even after the term 2022, and let it specify that, the same is given without any force, coercion or undue influence.

S Srinivasa Prasad
Advocate, Hyderabad
2876 Answers
9 Consultations

Once the NOC is given by your aunt, as referred above, you take her into confidence and get the activity of vacating completed as agreed upon, if there is any delay due to any unforeseen reasons, let it be addressed by you, by taking pro-active interest and do not let the same go into litigation mode.  Whatever she has does is enough to bind her legally.

S Srinivasa Prasad
Advocate, Hyderabad
2876 Answers
9 Consultations

1. No you cannot sell the property because it is owned by your mother and she also cannot sell the property till your aunt is having godown in the premises.

2. You can ask your mother to make an agreement for vacating the land in 2022 and get it registered so that it cannot he revoked and if aunt doesn't vacate the premises then your mother can sell the property without her consent.

Mohit Kapoor
Advocate, Rohtak
10686 Answers
7 Consultations

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