Back to all resourcesFamily

How Can Real Estate (Such As A House) Be Gifted While Alive?

By Muaaz Vahora
How Can Real Estate (Such As A House) Be Gifted While Alive?

It is permissible to gift a house during one’s lifetime, provided the motive is not to deprive other heirs of their share of inheritance. Since a gift is separate from inheritance, it does not need to adhere to the inheritance shares. Sons and daughters should  receive gifts of equal value. However, one child may receive a larger gift if there is a valid reason, such as one being a student and unable to earn while the other is self-sufficient.

Gifts given during one’s death illness are considered bequests and are valid only up to one-third of the estate.

Additionally, if an heir claims a gift from the deceased without proof and without knowledge of the other heirs, the claim will not be accepted. The claimed gift will remain part of the deceased’s estate.

For a gift to be valid, the recipient must take possession of it. If the recipient does not take possession, the gift will not be valid. This means that the house will remain the donor’s and will be included in their estate. Thus, the donor must transfer the house, including all its contents, to the recipient, relinquishing all rights over it. The recipient may then permit the donor to reside in the house and return the contents if desired. A gift cannot be conditioned on the donor’s continued residence in the house.

The process is complicated because a gift is legally valid only after possession is transferred. An alternative is to sell the property to the recipient for a nominal fee instead of gifting it. Since a sale contract does not require possession for completion, the seller does not need to vacate the property or gift their possessions only to take them back. A verbal offer and acceptance are sufficient for the transfer of ownership. 

Join Our WhatsApp Channel

Family tips and event updates straight to your phone.

Join Channel