Conditional Gift Deed in India : Legal Guide

When we receive a gift, something heartfelt, given out of love, goodwill, or a desire to create a bond, without any expectation of return. In Indian families, such gestures are deeply emotional. A father gifting property to his daughter, or a grandparent transferring land to a grandchild, these aren’t just transactions; they’re expressions of care, legacy, and trust. Legally speaking, a gift can be documented and formalised through a gift deed, a registered instrument under Indian law that transfers ownership of property voluntarily, without consideration. While many such deeds are unconditional, the law also recognises a lesser-known but important category: conditional gift deeds. These are gifts granted with specific terms attached, such as performance, timing, or use, and are legally valid when executed properly. Understanding conditional gift deeds can help preserve intent, avoid disputes, and ensure that generosity is not taken for granted.

What this blog covers:

• Meaning and legal validity of a conditional gift deed in India;
• Types of conditions that can be legally imposed;
• Essential contents of a valid conditional gift deed;
• Step-by-step guide to drafting a conditional gift dee;
• How and when can such a gift be revoked?
• Landmark case laws related to conditional gifts;

What Is A Conditional Gift Deed?

A Conditional Gift Deed is a legal document through which a donor voluntarily transfers movable or immovable property to a donee without any monetary consideration, but subject to clearly defined conditions. These conditions may dictate how, when, or under what circumstances the property can be used, transferred, or retained by the donee.

Can a Gift Deed Be Conditional?

Yes, a gift deed can be made conditional under Indian law. A conditional gift deed means the transfer of property can be subject to specific terms or restrictions, such as how the property is used, when the transfer takes effect, or whether the donee performs or refrains from performing a particular act. However, these conditions must be lawful, specific, and possible to fulfil; otherwise, the gift can be revoked.

As per the Transfer of Property Act, 1882, particularly Section 126, a donor has the legal right to impose such conditions. If the donee fails to meet them, the donor may be entitled to revoke the gift. In this way, conditional gift deeds offer donors a way to retain some control over how their gifted property is treated.

Key Features of a Conditional Gift Deed:

• Transfer without consideration: Property is gifted freely, but with conditions.
• Conditions must be lawful: They cannot be immoral, illegal, vague, or against public policy.
• Written and registered: For immovable property, the deed must be in writing and registered to be legally valid.
• Donee’s acceptance is essential: The donee must accept both the gift and its conditions.
• Revocation clause: The deed should include a clause that allows revocation if conditions are breached.

Example: A father gifts a house to his daughter on the condition that she does not sell it for 10 years. If she sells it earlier, the gift can be revoked.

Is A Conditional Gift Deed Valid In India?

Yes, a conditional gift deed is valid and legally enforceable in India, provided it complies with Sections 122 and 126 of the Transfer of Property Act, 1882. It allows the donor to transfer property with specific lawful conditions, and the gift becomes effective only when those conditions are fulfilled.

If the donee fails to meet the conditions, the gift may be revoked, but only if the deed contains an explicit revocation clause mutually agreed upon. The conditions must be clear, lawful, and not immoral or against public policy, and revocation cannot be based solely on the donor’s will, or the deed may be rendered void.

Note: Registration of the gift deed is mandatory under the Registration Act, 1908, particularly when dealing with immovable property. Without registration, the deed holds no legal validity and may be challenged in court.

Section 122 of the Transfer of Property Act, 1882

Section 122 defines a gift as the voluntary transfer of property from one person (the donor) to another (the donee) without any consideration. The transfer must be accepted by the donee during the lifetime of the donor for it to be legally valid.

Section 126 of the Transfer of Property Act, 1882

Section 126 permits revocation of a gift if it is conditional and the condition is not fulfilled. It recognises that a gift may be made subject to one or more conditions, and such a gift can be revoked if:

• The condition was agreed upon by both parties.
• The condition is lawful and clearly mentioned in the deed.
• The condition fails to occur or is breached.

However, if the donor reserves the right to revoke the gift unilaterally at will, the gift is considered void because it is not truly conditional but rather a gift with a power of revocation at the donor's discretion.

Key Legal Requirements for a Valid Conditional Gift Deed

1. Voluntary Consent: The gift deed must be made freely, without fraud, coercion, or undue influence.
2. Donor’s Capacity: The donor must be a major and of sound mind.
3. Donee’s Acceptance: The donee must accept the gift during the donor's lifetime, either expressly or impliedly.
4. In Writing & Registration
5. • The gift deed must be in writing.
   • For immovable property, registration under the Registration Act, 1908, is mandatory.
5. Lawful and Clear Conditions
6. • The conditions must be legal, possible to perform, and not immoral or against public policy.
   • Conditions must be clearly stated and not vague.
6. Revocation Clause
7. • The gift deed should explicitly mention that the gift is revocable on non-fulfilment of the specified condition.
   • A gift revocable at the donor’s sole discretion is void unless both parties have agreed to such a term.
7. Delivery of Possession: Delivery of property (or symbolic delivery via deed for immovable assets) is generally necessary to complete the gift.
8. No Consideration: A gift is a transfer made without any monetary exchange; only then will it be valid.
9. Protection of Third-Party Rights: The rights of bona fide third parties who acquire the property without knowledge of the condition must be respected.

Type Of Conditional Gift

Conditional gifts are broadly categorised into two types based on when the condition affects the gift’s effectiveness: Precedent Gift and Subsequent Gift.

Precedent Gift

A precedentary conditional gift deed requires the donee to fulfil a specified requirement before the gift takes effect. The transfer of ownership is contingent on the performance of that specific condition mentioned in the deed. Until then, the gift does not legally exist or take effect.

Example: A father gifts his property to his daughter, but the gift will take effect only after she completes her higher education.

• The donee must satisfy the condition (e.g., graduation) before the gift becomes valid.
• If the condition is not met, the gift never takes effect.

Subsequent Gift

A subsequent gift is one where the gift is transferred immediately, but it is subject to a future fulfilment of the condition. If the donee violates this condition, the donor has the right to revoke the gift, but only if the deed explicitly states the revocation clause, and it should relate to a specific future event (condition subsequent), not merely the donor’s will or discretion.

Example: A mother gifts her house to her son but states that the gift will be revoked if the son sells it within 5 years.

• Ownership passes instantly to the donee.
• The gift can be revoked if the specified event (e.g., sale of property within a certain period) occurs.
• The donor’s power to revoke cannot be arbitrary and must be linked to the specified condition.

Content Of A Conditional Gift Deed

A well-drafted conditional gift deed must clearly specify all important details to ensure its validity and enforceability. Essential contents include:

• Details of Donor and Donee: Full names, addresses, and their relationship between them.
• Description of Property: Clear and complete identification of the gifted property, whether movable or immovable, including location, boundaries, and other relevant particulars.
• Statement of Gift: A declaration confirming that the gift is made voluntarily, without any coercion, undue influence, or consideration.
• Specified Condition(s): Clearly defined condition(s) attached to the gift, whether precedent (condition to be fulfilled before transfer) or subsequent (condition to be fulfilled after transfer). These conditions govern when the gift takes effect or can be revoked.
• Rights and Obligations of Parties: Explanation of the consequences if the conditions are fulfilled ( of the non-performance condition) or breached (the performance of the condition), including any rights to revoke the gift.
• Acceptance Clause: A clause confirming that the donee has accepted the gift during the donor’s lifetime.
• Revocation Clause (If Applicable): If the gift can be revoked on breach of condition, the deed should explicitly mention this and specify the circumstances under which revocation is allowed.
• Date and Place of Execution: When and where the gift deed is to be executed.
• Signatures and Witnesses: Signatures of the donor and donee, attested by at least two witnesses who verify the voluntary nature of the transfer.

Drafting And Executing A Conditional Gift Deed

A conditional gift deed must be carefully drafted and properly executed to ensure its legal validity and prevent future disputes. Below is a step-by-step guide:

1. Draft the Deed: Prepare the gift deed using precise, clear language specifying the exact condition(s). It is advisable to seek legal assistance to ensure the conditions are lawful, unambiguous, and enforceable.
2. Include Clear Conditions: Clearly state whether the condition is precedent or subsequent, and detail what happens if the condition is or isn’t fulfilled.
3. Stamp Duty Payment: Pay the appropriate stamp duty based on the market value of the gifted property, as per the Stamp Act applicable in the state.
4. Register the Deed: Submit the deed at the local Sub-Registrar’s office for registration under the Registration Act, 1908. Registration is mandatory for immovable property gifts and gives legal validity.
5. Acceptance by Donee: The donee must accept the gift by signing the deed during the donor’s lifetime; this acceptance should be recorded in the deed.
6. Signatures and Witnesses: The donor, donee, and at least two witnesses must sign the deed to validate it.

Can A Conditional Gift Deed Be Revoked?

A conditional gift deed creates a transfer of property or assets subject to certain conditions. Whether such a deed can be revoked depends largely on the fulfilment or breach of these conditions, the terms of the deed itself, and applicable legal principles.

Grounds for Revocation

A conditional gift deed may be revoked under the following grounds:

• Non-fulfilment of Conditions: If the donee fails to satisfy the specific lawful conditions outlined in the gift deed, the donor has the right to revoke the gift.
• Revocation Clause in the Deed: If the deed explicitly includes a clause allowing the donor to revoke the gift upon breach of certain conditions, revocation can be lawfully enforced.
• Mutual Agreement: If both the donor and donee mutually agree to revoke the gift deed at any point.
• Fraud, Misrepresentation, or Undue Influence: If the gift was obtained through fraudulent means or undue pressure, revocation is permissible under general contract law principles.

Legal Procedure to Cancel a Gift Deed

Revoking a conditional gift deed requires following a proper legal process:

1. Issue Legal Notice: The donor should notify the donee formally about the breach of condition and intention to revoke the gift.
2. File a Suit for Cancellation: The donor (or any interested party) must approach the appropriate civil court to seek cancellation of the deed.
3. Present Evidence: Proof of the specified condition, its breach, and the terms of the deed must be submitted to support the revocation claim.
4. Court Decision: The court examines the deed, evidence, and arguments before deciding whether to cancel the gift deed or not.

Court Rulings on Revocability Due to Breach of Condition

Judicial precedents provide clarity on revocation related to conditional gifts. Courts generally uphold revocation where the condition is clearly defined, lawful, and breached by the donee. The Supreme Court has struck down conditions that are vague, unreasonable, or violate fundamental rights, such as lifelong unpaid services, as seen in Smt. Naresh Kumari vs Smt. Chameli on 11 December, 2024

Parties to the case: Smt. Naresh Kumari & Ors. (Appellant) v. Smt. Chameli & Ors. (Respondent)

Facts:

• In 1953, Rai Bahadur Randhir Singh (donor) orally gifted agricultural land to three brothers (donees).
• The alleged condition: The donees and their heirs must render lifelong services to the donor and his heirs.
• After about 45 years, the donor’s heirs filed a suit to reclaim the land, claiming the donees had stopped providing services.
• The trial court and first appellate court ruled for the plaintiffs, but the High Court reversed this, finding no enforceable condition and insufficient proof of breach.

Issue: Can a gift be revoked on the basis of a condition requiring lifelong, unpaid services from the donee and their successors? Is such a condition valid and enforceable?

Judgment: The Supreme Court upheld the High Court’s decision, dismissing the appeal. It held that a condition requiring endless, unpaid services amounts to “begar” (forced labour), which is unconstitutional and violates Articles 14, 21, and 23 of the Indian Constitution.

The Court clarified that for revocation to be valid, the condition must be lawful, specific, and not violate fundamental rights. The services, if any, should be understood as “past services” or, at most, services by the original donees to the original donor during his lifetime.

Impact: This ruling confirms that conditions for revocation of a gift must be specific, lawful, and enforceable. Vague, unreasonable, or unconstitutional conditions-such as those requiring lifelong unpaid services-are void and cannot be the basis for revocation. The judgment reinforces constitutional protections against forced labour and prevents misuse of conditional gifts.

Exception

Revocation is not always possible, there are key legal exceptions to this rule. The important exceptions to revocation are:

1. Unlawful, Immoral, or Vague Conditions: If the condition in the gift deed is vague, immoral, unlawful, or against public policy, courts may declare the condition, or even the entire deed, void and unenforceable. In such cases, revocation on these grounds is not permitted.
2. Fulfilled Conditions: Once the lawful conditions mentioned in the gift deed are fully met, the gift becomes irrevocable, even if the donor later changes their mind, unless the deed clearly allows for revocation after fulfilment.
3. Gifts Without Conditions (Out of Love and Affection): If a gift is made voluntarily and unconditionally out of love and affection, it cannot be revoked later on any pretext. These are typically absolute gifts and fall outside the scope of revocable conditional deeds.

Examples Of Conditional Gift Deeds

A conditional gift deed includes terms that must be met for the gift to be valid or continue to remain valid. These conditions can either be the precedent or the subsequent conditional gift deed. Let’s look at some illustrative examples to better understand how conditional gift deeds work in real life:

1. Condition Precedent

These are conditions that must be fulfilled before the gift takes effect.

• A grandfather gifts land to his grandson, but the transfer is valid only if the grandson agrees to take care of him in old age.
• A woman gifts jewellery to her daughter, but the gift will only become effective after her marriage.
• A father gifts land to his son on the condition that the son completes his master's degree in London within five years. If the son fails to do so, the gift becomes void.

2. Condition Subsequent

These conditions must continue to be followed after the gift is made. If violated, the gift can be revoked.

• A man gifts his house to his nephew with the condition that it cannot be sold or rented for 10 years. If the nephew violates this term, the gift may be cancelled.
• A donor gifts land to a charitable trust, with a condition that it must be used only to run an orphanage. If the land is used for any other purpose, the donor can reclaim it.
• A donor gifts property to a couple, stating that if the wife dies childless, the property will revert to the husband.

3. Other Common Scenarios

• Gifting a house to a son, provided he agrees to take care of his ageing parents.
• Gifting property to a daughter with the condition that she marries within a specific community (as long as the condition is not immoral or against public policy).
• Gifting land with a clause that it cannot be sold or mortgaged as long as the donee is alive.

Case Laws On Conditional Gift Deeds

Understanding how courts have interpreted and enforced conditional gift deeds can provide clarity on their legal standing. Below are key judgments that illustrate how conditions attached to gifts are treated under Indian law.

Renikuntla Rajamma (D) By Lr vs K.Sarwanamma on 17 July, 2014

Name of the Parties: Renikuntla Rajamma (Appellant) v. K. Sarwanamma (Respondent)

Facts:

• The donor (Rajamma) executed a registered gift deed transferring immovable property to the donee (Sarwanamma).
• The donor reserved the right to enjoy the property and receive its rents and profits during her lifetime.
• Later, the donor attempted to revoke the gift deed, arguing that retaining the right to use the property made the gift incomplete.

Issue: Does the donor’s retention of the right to use/enjoy the property during her lifetime affect the validity and completeness of the gift under the Transfer of Property Act, 1882?

Judgment/What Was Held:

• The Supreme Court in the case of Renikuntla Rajamma (D) By Lr vs K.Sarwanamma on 17 July, 2014 held that the gift was valid and complete upon execution and registration, as required by Sections 122 and 123 of the Transfer of Property Act.
• The retention of a life interest (right to use or enjoy the property) by the donor does not invalidate or make the gift incomplete.
• Once the gift deed is validly executed, registered, and accepted, ownership passes to the donee, even if the donor keeps some rights for life.

Impact: This case clarifies that a gift deed is valid and complete if executed, registered, and accepted as per law, even if the donor reserves certain rights (such as life interest). Retention of possession or enjoyment by the donor does not affect the transfer of ownership to the donee.

Naramadaben Maganlal Thakker vs Pranjivandas Maganlal Thakker & Ors on 10 September, 1996

Name of the Parties: Naramadaben Maganlal Thakker (Petitioner) v. Pranjivandas Maganlal Thakker (Respondent)

Facts:

• Motilal Gopalji (donor) executed a registered gift deed in favour of the respondent, with explicit conditions: he retained possession, the right to collect rent, and enjoyment of the property during his lifetime.
• The donee’s right to full ownership and enjoyment was to arise only after the donor’s death.
• The donor cancelled the gift deed within a month and later made a will in favour of other family members.
• The dispute was whether the gift was complete and irrevocable, or whether the donor could lawfully cancel it.

Issue: Whether a gift deed can lawfully include conditions allowing the donor to retain possession and enjoyment until a future event (here, the donor’s death), and whether such a gift is complete before those conditions are fulfilled.

Judgment: The Supreme Court in the case of Naramadaben Maganlal Thakker vs Pranjivandas Maganlal Thakker & Ors on 10 September 1996 held that the gift was conditional and incomplete because:

• The donor retained possession and enjoyment until his death.
• There was no evidence of acceptance or transfer of possession by the donee during the donor’s lifetime.
• The gift was to become operative only after the donor’s death.

Therefore, the donor was entitled to cancel the gift deed before it became complete.

Impact: This case confirms that conditional gift deeds are valid under Indian law, but the gift is not complete-and can be revoked-until all clearly stated and lawful conditions are fulfilled, especially if the donor retains possession or rights until a future event.

S. Sarojini Amma v. Velayudhan Pillai Sreekumar (2018)

Parties to the case: S. Sarojini Amma (Appellant) vs Velayudhan Pillai Sreekumar (Respondent)

Facts:

• The appellant (a childless widow) executed a registered gift deed in favour of her nephew.
• The deed stated the gift would take effect only after the donor and her husband’s death, and until then, the donor retained possession and enjoyment.
• The donor later cancelled the gift deed, leading to a legal dispute over whether the gift was complete and irrevocable.

Issue: Is a conditional gift complete and irrevocable before the fulfilment of its conditions, especially when the donor retains possession and the gift is to take effect only after the donor’s lifetime?

Judgment/What Was Held: The Supreme Court in the case of S.Sarojini Amma vs Velayudhan Pillai Sreekumar on 26 October 2018 held that a conditional gift is incomplete until the specified conditions are fulfilled. Since the donor retained possession and the gift was to take effect only after her death, the gift was incomplete and could be cancelled by the donor during her lifetime.

Impact: This case clarifies that a conditional gift deed does not become irrevocable or complete until all conditions are met. If the donor retains rights or possession until a future event, the gift can be revoked before that event occurs.

Conditional Gift Deed Format In India

DEED OF CONDITIONAL GIFT

This Deed of Conditional Gift is made at [City] on this [Date] day of [Month, Year] between:

Donor:
[Donor Name], S/o/D/o [Father’s/Mother’s Name], aged [__] years, residing at [Address] (hereinafter referred to as the "Donor", which expression shall, unless repugnant to the context, mean and include his/her heirs, executors, administrators, and assigns) of the FIRST PART;

AND

Donee:
[Donee Name], S/o/D/o [Father’s/Mother’s Name], aged [__] years, residing at [Address] (hereinafter referred to as the "Donee", which expression shall, unless repugnant to the context, mean and include his/her heirs, executors, administrators, and assigns) of the SECOND PART.

WHEREAS:

• The Donor is the absolute owner of the immovable property described below:
•  
• • [Property Description: Complete address, Survey No., Area, Boundaries, etc.]
• The Donor desires to gift the above property to the Donee, subject to the following condition(s):
•  
• • [Clearly specify the condition precedent or subsequent, e.g., “The property shall not be sold, transferred, or mortgaged for a period of 10 years from the date of execution.”]

NOW THIS DEED WITNESSES AS FOLLOWS:

1. The Donor hereby voluntarily and without consideration gifts the said property to the Donee, subject to the above-stated condition(s).
2. The Donee hereby accepts the gift and agrees to abide by the specified condition(s).
3. If the Donee fails to fulfil the condition(s) as stated, the Donor shall have the right to revoke this gift in accordance with Section 126 of the Transfer of Property Act, 1882.
4. The value of the gifted property is Rs. [________].
5. The Donor affirms that this gift is made without any fraud, coercion, undue influence, or misrepresentation, and that the Donor is of sound mind and competent to execute this deed.
6. The transfer and acceptance of the property shall take effect upon registration of this deed and delivery of possession on [date].
7. Both parties affirm that the condition(s) are lawful, reasonable, and not contrary to public policy or morality.

IN WITNESS WHEREOF, the parties hereto have executed this Deed of Conditional Gift on the day, month, and year first above written.

Signature of Donor: _______________________

Signature of Donee: _______________________

Witnesses:

1. Name: ______________________
   Address: ___________________
   Signature: _________________
2. Name: ______________________
   Address: ___________________
   Signature: _________________

Conclusion

A conditional gift deed is more than just a legal formality, it is a thoughtful blend of emotion and legal foresight. It empowers donors to transfer property while ensuring their intentions are respected, safeguarded, and legally upheld. As discussed, Sections 122 and 126 of the Transfer of Property Act, 1882, provide the framework for creating such deeds, granting validity to gifts made with lawful, clear, and reasonable conditions. When drafted with care and registered properly, a conditional gift deed protects both parties: the donor’s trust and the donee’s responsibilities.

Courts in India have consistently upheld these instruments when the conditions are precise and not contrary to public policy, highlighting the importance of clarity, intent, and lawful purpose. At its core, a conditional gift deed reflects not just property transfer but trust, legacy, and emotional investment. It reminds us that even in legal transactions, relationships matter. By honouring the conditions attached to such gifts, both donor and donee preserve the true spirit of giving, one that’s grounded in love, trust, and mutual respect.

Frequently Asked Questions

To help you better understand the legal and practical aspects of conditional gift deeds, here are answers to some common queries:

Q1. Is a conditional gift deed legally valid in India?

Yes, conditional gift deeds are legally valid under the Transfer of Property Act, 1882. The law permits donors to attach reasonable, lawful, and clearly defined conditions to a gift deed. For validity, the property must exist at the time of transfer, and the donor must be competent and act voluntarily.

Q2. Can a conditional gift deed be revoked?

Yes, a conditional gift deed can be revoked if the donee fails to fulfil the specific conditions mentioned in the deed. However, the right to revoke must be expressly stated in the deed, and the donor must approach the court for revocation. Revocation is not allowed for arbitrary or vague conditions.

Q3. Is registration mandatory for conditional gift deeds?

Yes, registration of a conditional gift deed is mandatory for immovable property under the Registration Act, 1908. Without registration, the deed is not legally enforceable, and the transfer is not recognised by law.

Q4. Can a donor impose any type of condition?

Yes, only lawful, reasonable, and possible conditions can be imposed. Conditions that are illegal, immoral, impossible, or against public policy are void and will not be enforced by courts. For example, conditions requiring unlawful acts or perpetual unpaid services are unconstitutional and invalid.

Q5. Can a donee sell a gifted property if a condition restricts it?

No, if the gift deed expressly restricts the sale or transfer of the property and the donee breaches this condition, the donor can take legal action and seek revocation of the gift. The donee must comply with all specified conditions to retain ownership.

Q6. What are the essential elements of a valid conditional gift deed?

A valid conditional gift deed must include:

• Details of the existing property being gifted
• Clearly stated and lawful conditions
• Voluntary transfer by a competent donor
• Acceptance by the donee during the donor’s lifetime
• Proper registration and attestation by witnesses

Q7. Can a conditional gift deed be challenged in court?

Yes, a conditional gift deed can be challenged in court if there is evidence of fraud, coercion, undue influence, or if the conditions are vague, unlawful, or impossible to perform. Courts will examine the intent, clarity, and legality of the conditions.

Q8. What is the difference between a conditional gift deed and a will?

Q9. Can a donor gift future property through a conditional gift deed?

No, a gift deed (including a conditional one) can only transfer existing, tangible property. Attempting to gift future property renders the deed void.

Q10. What happens if the donee does not accept the conditional gift?

If the donee does not accept the gift during the donor’s lifetime, the conditional gift deed becomes void and has no legal effect.

Disclaimer: The information provided here is for general informational purposes only and should not be construed as legal advice. For personalised legal guidance, please consult with a civil lawyer.