What is a gift deed?

If you have any inkling of knowledge about the Contract Law in most countries, you will know that contracts without any consideration (cash or kind) are considered null and void, save for a few exceptions. Let us take an example to explain this slightly complex sounding statement. When you want to get a new house, you go to a homeowner who no longer wants his and quote a price so that the homeowner should relinquish the ownership. So this 'consideration' from the point of view of the seller is the cash he gets, while the consideration from your point of view is the ownership of the home. Furthermore, the contract law in most countries doesn't recognize deals done without consideration for both parties and where there is only one benefactor, except in the case known as a 'gift'. When one person 'gifts' his large, plush and priceless gift deed property to another, he receives nothing in return by way of consideration or compensation. The receiver of this property pays nothing. The consideration here is said to be 'love' and hence the contracts stands fulfilled.

So what is a deed of gift? Well, when you give your immovable asset to another person, which is, you grant your right of ownership over an immovable property to another, for no consideration, or in other words 'for free', the gift deed is the piece of documentation which records that. The gift deed shows that the buyer has received the property for no consideration, as a gift and its ownership for all practical purposes, rests with him.