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Gift Deed
I need a gift deed to transfer ownership of a residential property to my daughter as a gift, ensuring it is irrevocable and includes all necessary legal descriptions and terms. The document should comply with local laws in Pakistan and include clauses for the donor's and donee's rights and responsibilities.
What is a Gift Deed?
A Gift Deed is a legal document that transfers ownership of property from one person to another without any payment or exchange. In Pakistan, it allows you to formally gift your assets - like land, buildings, or valuable items - to family members or others while you're alive, making the transfer permanent and legally binding.
Under Pakistani law, Gift Deeds must be properly registered at the local Sub-Registrar's office and include clear details about both parties, the property being gifted, and a statement confirming the gift is voluntary. The deed becomes effective immediately after registration, unlike a will which takes effect after death, and helps prevent future property disputes among family members.
When should you use a Gift Deed?
Use a Gift Deed when transferring property to family members during your lifetime, especially in situations where you want to avoid future inheritance disputes. This legal tool proves particularly valuable for Pakistani parents distributing assets among children, or when gifting property to close relatives while maintaining complete transparency.
The deed becomes essential during tax planning, as properly documented gifts can help reduce future estate complications. It's also crucial when transferring ancestral property, supporting children's education through asset transfers, or ensuring elderly parents' financial security. Getting it registered immediately protects both the giver and receiver from potential legal challenges later.
What are the different types of Gift Deed?
- Gift Deed Transfer Of Property: Covers transfer of immovable property like houses or land, requiring registration at the Sub-Registrar's office
- Gift Deed Of Cash: Documents monetary gifts, particularly useful for tax compliance and financial record-keeping
- Deed Of Gift Of Shares: Specifically for transferring company shares or securities to family members
- Blood Relation Gift Deed: Special format emphasizing familial relationship, often used for ancestral property transfers
- Cash Gift Deed In Blood Relation: Combines cash transfer with blood relation acknowledgment for enhanced legal protection
Who should typically use a Gift Deed?
- Property Owners (Donors): Parents, grandparents, or individuals who wish to transfer their assets as gifts during their lifetime
- Recipients (Donees): Family members, children, or other beneficiaries receiving the gifted property or assets
- Legal Practitioners: Lawyers who draft and verify Gift Deeds to ensure compliance with Pakistani property laws
- Sub-Registrars: Government officials who authenticate and register the deed, making it legally binding
- Witnesses: Two independent individuals who must verify and attest to the voluntary nature of the gift transfer
- Tax Authorities: Officials who review Gift Deeds for tax implications and compliance with financial regulations
How do you write a Gift Deed?
- Property Details: Gather complete property description, location, measurements, and registration numbers from official documents
- Identity Proof: Collect CNIC copies and recent photographs of both donor and recipient
- Property Documents: Assemble original title deeds, tax receipts, and previous transfer records
- Witness Information: Arrange two witnesses with their CNIC details and contact information
- Market Value: Document current market value of the property for stamp duty calculation
- Registration Fees: Calculate and arrange payment for stamp duty and registration charges
- Digital Draft: Use our platform to generate a legally-compliant Gift Deed, ensuring all mandatory elements are included
What should be included in a Gift Deed?
- Title and Date: Clear heading identifying it as a Gift Deed with execution date and place
- Party Details: Full names, CNICs, addresses, and relationships of donor and recipient
- Property Description: Detailed specifications of the gifted property with boundaries and registration details
- Transfer Statement: Clear declaration of voluntary transfer without consideration
- Possession Clause: Statement confirming immediate transfer of possession
- Rights Transfer: Details of all rights, titles, and interests being transferred
- Witness Section: Names, CNICs, and signatures of two witnesses
- Execution Block: Signatures of donor and recipient with dates and stamps
What's the difference between a Gift Deed and a Sale Deed?
A Gift Deed differs significantly from a Sale Deed in several crucial aspects under Pakistani law. While both transfer property ownership, their fundamental purposes and legal requirements are distinct.
- Consideration: Gift Deeds involve no monetary exchange or compensation, while Sale Deeds require payment of an agreed purchase price
- Revocation Rights: Gifts can sometimes be revoked under specific circumstances in Islamic law, whereas sales are typically permanent and irrevocable
- Tax Implications: Gift transfers between close relatives often enjoy tax benefits, while property sales attract capital gains tax and higher registration fees
- Documentation: Gift Deeds require proof of relationship and voluntary transfer, while Sale Deeds focus on payment evidence and market value verification
- Legal Intent: Gift Deeds must clearly demonstrate donative intent, whereas Sale Deeds establish a buyer-seller relationship with mutual obligations
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