Husband and wife should execute gift deed for 1000 square feet land in each daughter name
gift deed should be stamped and registered
you can then pay lease rentals to daughters
Gift deed for renting a portion of property to children
My client Owns a Land about 11000sqft in a commercial area in Bangalore. The land is being leased out on long term basis to a Private Ltd. company on rent. The land is currently in the husband & wife's name. Since my client is taking the land on long term lease. The Owner wants some rent to be shared to the 2 daughters aswell. Is it possible to legally make a Gift Deed such that we mention say 10% of the land is being gifted to each of his daughters such that they also enjoy 10% of the rental share every month. How can this be legally done. Can we then register 2 lease agreements in both the daughters names aswell with the 10% rent for each of them. Unless we have a registered agreement with the Owners the company will not be able to make any payments to either of the daughters. Please let me know our options. Thank you & appreciate your advice & help sir.
Asked 6 months ago in Property Law
Religion: Hindu
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14 Answers
Sir Ji thank you for your immediate response, our doubt is, does he need to physically demarcate the land or in Bangalore we have this option of making a bifurcation khata and all, which is a long process due to time constraints yet we want the process to be done in the right manner so there is no legal issues in future for both parties. Can we just make a Gift deed only for the rent for each of his daughters, where he directly mentions 10% of the rent he is receiving on this land be gifted to each daughter. IS that allowed? His intention is to give them both a share on the rent he receivers. On his demise they will eventually be the Owners of the property. Or is the right way as discussed to first gift 10% or 1000sqft land and in the same deed mention that the rentals received on the 1000sqft land to be paid to each of the daughters without having to physically bifurcate or mark out a portion of the actual land. Thank you
Asked 6 months ago
Once gift deed is executed stamped and registered mutation of land has to be done in daughter name
then you can give rentals to daughters
3) you cannot make gift deed for rentals only as daughters have no share in land as on date
1. Let the husband and wife, being the joint owners, execute a registered Gift Deed in favour of their 2 daughters for 10% of the land in the jurisdictional Sub Registrar's Office. Before executing the Gift Deed, let them arrange to bifurcate the Khatha and obtain from the jurisdictional BBMP.
2. After this the lease deed be drawn incorporating the 4 owners and the monthly proportionate rental proceeds be given to all the 4 owners.
You can execute the gift deed in said matter
You can ask the landlord to gift 10% of the property each to both his daughters by executing a registered gift deed.
After that all the owners of the property can execute a registered lease deed in favor of the tenant.
The terms of rental payment may be mentioned in the lease agreement accordingly.
There is no necessity to execute two lease agreements.
Besides two lease agreements for a single property is not valid in law.
If you want to have the entire property on lease then it will be better that the landlord transfer an undivided 10% share of his property to each of his daughter by a registered settlement/gift deed.
They can obtain a joint khata accordingly mentioning each individual's share in the property.
If you physically divide the proeprty as per the landlord's desire, then they both have to execute a separate lease agreement for their portion of property alone, then it becomes three lease agreements.
You inform the landlord about the procedure explained here, it becomes his problem to set right the things as per legally procedure.
It is not your duty to divide the property or to give the rental amount to a person who is not a legal owner.
no need of any gift deed. complete waste of time
it can be mentioned in the lease deed itself that on the instructions of the owner, a portion of the rent will be paid to their daughters and such amount so paid will constitute a valid legal discharge for the lessee company
why complicate so much with bifurcation and gift deed?? just apply some common sense!
Sir yes in simple terms we can say 'apply common sense', problem is what is common, may not always make sense, so far as the law is concerned common sense may not always be accepted as the right thing, there are many laws which many of us may thing could have been better or perhaps does not make any sense, but then those are still rules and need to be followed, a Pvt Ltd company cannot and will not randomly make a make payment to family members based on the Owners instructions. Its ok to waste time at the onset, than regret later, you may say waste of time, I would rather tell people to Invest some time and get things in order than regret later. Anyway Sir with all due respect Mr.Yusuf Ji my intention is not to have an argument or a debate here. There's a GST component that also needs to be taken into consideration, the GST department may not look at it the same way. Lets say the company is paying about Rs.10L/month for the land. Hence trying to ensure it is done in a manner which does not break any laws and is also feasible practically. If it was so easy, then most commercial Landlords will simply split their rent with the family by making an instruction to make payments to family members. Its a case to case basis. Gift deed is being considered so atleast from the company's perspective, to make a valid payment there is some justification that the person has Ownership in the land and hence they can make a monthly rent payment.
Asked 6 months ago
Owner can execute gift deed of part of land in favour of daughters
you can then pay part of rentals to daughters
Yes it can be executed and registered
The question is about sharing the rental amount with the daughters of the land owner along with him, now your problem is that they do not have any share in the property hence they cannot claim a portion of the rental amount without any authority.
It was advised that until and unless the owner is transferring a portion of the property each to his daughters by a registered transfer document, they cannot be included as joint owners in the property, hence you can ask the owner to execute a registered gift deed in their favor after which all the three can enter into a joint registered lease agreement with you, so taht you can make the rental payment to them also separately as per the terms and conditions of the lease agreement.
It is not understood that why complicate a simple thing to such a great extent
1. You can enter in to a lease agreement with the Company wherein you can mention as the terms of payment of lease amount that certain portion of the lease amount is to be paid in favour of your two daughters,
2. In the above case, you wont have to divide the land by registering any title deed in favour of your said daughters.
3. Alternatively you can divide the land and gift a portion of it in favour of your two daughters, and
4. In that case the Company shall have to enter in to lease agreement separately with your two daughters or enter in to one lease agreement wherein your said two daughters also will be the signatories. There share of the land and also the rent/fee also shall have to be clearly mentioned in the said jointly held lease deed.
1. If you register gift deeds in favour of your two daughters, the land gifted shall have to be demarcated with metes and bounds for the purpose of registering the gift deeds.
2. If portions of the land are gifted to the two daughters, then they shall have to be treated as the lessors along with you.
1. You can either register two gift deeds in favour of the daughters and make they two separate lessors in the deal or
2. Keep the land in your name bit mention in the payment terms of the lease agreement that 10%. or whatever percentage you decide, of the lease rent/fee shall be paid in the accounts of the said two daughters separately.
1. Let the husband and wife, being the joint owners of the property, execute a registered Gift Deed in favour of their two daughters for their 10% share in the property in the jurisdictional Sub Registrar's Office.
2. Let the Lease Deed be drawn incorporating all the four owners and the monthly rental proceeds be given to all the four owners.