• Does conditional gift deed hold good even after the sale

Hello,

My mother is in procession of an Undivided part of a house where the ground floor belongs to her while the first Floor belongs to my aunt (mother's sister) with demarcations. The ground floor was given to my mother through a Conditional Gift deed. The Conditions are as follows:

1: The property should be used for residential purposes and not for any commercial use.

2: The Donee(my mother) should not cause any additions or alterations to the Ground Floor.

There are no conditions on selling the Property. My question is does these above conditions also apply to a third party who would buy this property?

Also can these conditions be made null and void through some procedure?

Thank You.
Asked 6 months ago in Property Law
Religion: Hindu

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9 Answers

If your mother is permitted to sell the property the conditions would not be applicable to purchaser of property 

 

he can use premises for commercial use after obtaining prior permission from municipal authorities 

Ajay Sethi
Advocate, Mumbai
84936 Answers
5617 Consultations

5.0 on 5.0

The conditions imposed in the gift settlement deed may not be enforceable in law, however giving due regards to the conditions, your mother can honor them till such time the property is with her.

Now, upon transfer of this proerty to the prospective buyer by a registered sale deed, the buyer acquires absolute rights over the proeprty, hence he do not have to abide by such conditions.

 

T Kalaiselvan
Advocate, Vellore
75050 Answers
1263 Consultations

5.0 on 5.0

- A Conditional gift is one that is subject to or dependent on a condition and it 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.

- If the gift deed is registered then its conditions are applicable with your mother. 

- Since, there is no clause which prohibits your mother for selling the property , then she can sell the same , and the said conditions will not apply with the purchaser. 

Mohammed Shahzad
Advocate, Delhi
8498 Answers
92 Consultations

5.0 on 5.0

1. It's not clear in your narration as to whether the Donor is alive or not and whether the Donee has accepted the Gift of the Ground Floor during the lifetime of the Donor.

2. Assuming that the Donor is not alive and the Donee had satisfied the conditions in the conditional Gift Deed during the lifetime of the Donor itself, then the conditions are met and the Donee can sell the property in view of no restrictions mentioned for selling in the Gift Deed.

3.  The conditions will not apply to prospective buyer of the property.

4.  These conditions become Null & Void after the lifetime of the Donor or if the Donor is alive,  a fresh Gift Deed can be executed by the Donor in favour of the Donee, without any conditions.

Shashidhar S. Sastry
Advocate, Bangalore
3875 Answers
234 Consultations

5.0 on 5.0

Dear sir/ma'am, 

A gift deed can only be sold to a third person if that gift is unconditional.

Thank You

Anik Miu
Advocate, Bangalore
3099 Answers
31 Consultations

4.9 on 5.0

A. General rule, conditional gift shall be void transaction. However, as the property nature is undivided then condition towards alterations and additions is valid conditions and it's conditions would be carried to third party purchaser also. 

 

B. As far as the residential usage conditions also valid and the same will pass to third party.

B.T. Ravi
Advocate, Bangalore
943 Answers
96 Consultations

5.0 on 5.0

the conditions only apply to the donee

they do not run with the property in my view

such conditions in my view are 'voidable' at the instance of the donee

Yusuf Rampurawala
Advocate, Mumbai
6565 Answers
60 Consultations

5.0 on 5.0

Dear Sir,

Such conditions cannot run perpetually and document is to be read and its meaning to be culled out.

If conditions are violated then the aggrieved party may approach the Civil Court then court will pass appropriate orders.

Kishan Dutt Kalaskar
Advocate, Bangalore
6017 Answers
330 Consultations

4.8 on 5.0

1. The third party would not inherit the fetters imposed on your mother.

2. The conditions cannot be neutralised except through a sale.

Ashish Davessar
Advocate, Jaipur
30752 Answers
923 Consultations

5.0 on 5.0

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