3 Common Methods to Transfer Property in India: Explained

Transferring property in India is a significant legal process that involves the change of ownership from one party to another. It can be initiated for various reasons, including selling property, gifting it to a family member, or transferring ownership within a family or business. In this guide, we explore three common methods of property transfer in India and the key aspects associated with each method.

1. Sale Deed:

Explanation: A Sale Deed is the most common method of transferring property in India. It involves the sale of the property from one party (the seller) to another (the buyer) in exchange for a specified amount of money (the sale consideration). The Sale Deed is a legally binding document that effectively transfers ownership.

Key Aspects:

  • Property Valuation: The property’s value is determined based on factors such as location, size, and prevailing market rates.
  • Stamp Duty and Registration: The Sale Deed must be executed on non-judicial stamp paper and registered at the local Sub-Registrar’s Office. The stamp duty is payable based on the property’s value.
  • Due Diligence: Buyers must conduct due diligence to ensure the property’s legal title is clear and there are no encumbrances.
  • Possession: The Sale Deed may specify the possession date, which marks the transfer of physical possession to the buyer.

2. Gift Deed:

Explanation: A Gift Deed is used when a property owner (the donor) wishes to gift their property to another individual (the recipient) without any monetary exchange. The transfer is based on the donor’s intent to make a voluntary gift.

Key Aspects:

  • Donor’s Consent: The donor must willingly and without any coercion decide to gift the property. It’s a one-sided transaction, and the recipient does not need to provide any consideration.
  • Stamp Duty and Registration: A Gift Deed must be executed on non-judicial stamp paper and registered. However, the stamp duty for gift deeds is typically lower than that for sale deeds.
  • Recipient’s Acceptance: The recipient should accept the gift, and the acceptance is typically recorded in the deed.
  • Tax Implications: There may be tax implications for both the donor and the recipient, depending on the relationship and the property’s value.

3. Relinquishment Deed:

Explanation: A Relinquishment Deed is used when one or more co-owners of a property decide to relinquish their share in favor of other co-owners. It allows for the equitable distribution of property rights among co-owners.

Key Aspects:

  • Co-Owner Consent: All co-owners involved in the relinquishment must mutually agree to the deed, and the intent to relinquish is recorded in the document.
  • Stamp Duty and Registration: Like other property transfer deeds, Relinquishment Deeds must be executed on non-judicial stamp paper and registered.
  • Division of Shares: The deed specifies the share of the property that each co-owner is relinquishing, which is then transferred to the remaining co-owners.
  • Avoiding Disputes: Relinquishment deeds help avoid disputes among co-owners and provide a transparent method of redistributing ownership.


Transferring property in India can be achieved through various legal methods, each tailored to specific situations and objectives. It’s essential to follow the legal procedures, including stamp duty payments and registration, to ensure the transfer is valid and enforceable. Additionally, it’s advisable to seek legal guidance to navigate the complexities of property transfers and make informed decisions.

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