Dear Sir,

A gift deed cannot be conditional. Therefore this clause is a nullity and hence, you are free to sell your share. Basically a gift deed with conditions is not valid in law.

Thank You

Section 123 of the T.P. Act is in two parts. The first part deals with gifts of immovable property while the second part deals with gifts of movable property. Insofar as the gifts of immovable property are concerned, Section 123 makes transfer by a registered instrument mandatory.

2)Section 123 regulates mode of making a gift and, inter alia, provides that a gift of immovable property must be effected by a registered instrument signed by or on behalf of the donor and attested by at least two witnesses.

3)conditional gift deed can be executed by donor 

4) there would be clause in gift deed if conditional are violated gift deed would stand revoked 

1.  Yes, conditional gift deed is allowed. 

2.  In respect of the tenants who have no issues, it will revert back to the Donor.

3.  The subsequent purchaser in such a condition in future does not get a good title. 

1. A conditional gift deed is not legally valid,  the registrar may not entertain the registration of gift deed with any such condition. 

2. The tenants are not law makers neither the landlord. 

3. When a gift deed with conditions is not legally valid nor it can be registered,  there is no question of violation of such conditions in future. 

- As per Section 122 of the Transfer of Property Act, Gift is the transfer of certain existing movable or immovable property made voluntarily and without consideration, by one person called the donor, to another person called the donee, and accepted by or on behalf of the donee.

- Hence, for a Gift deed, Acceptance is mandatory by the donee , and such acceptance must be made during the lifetime of the donor , and if the donee dies before acceptance, the gift becomes invalid. 

- Further, after the acceptance by the donee , gift deed cannot be cancelled unless it is a conditional gift.

- Further, Gifts that involve immovable property should be registered under the Transfer of Property Act, 

- It means without registration of Gift deed, the title does not pass on to the donee, 

- And further, a Conditional gift is one that is subject to or dependent on a condition.

- Further, a Conditional gift can be revoked if the recipient does not fulfil the conditions attached to the gift.

- Further, a gift is a conditional gift and it is not final until some future event occurs and if the particular event does not occur, the person making the gift has the right to get back the gift.

- Hence you should execute a Conditional Gift deed , after mentioning the conditions

Dear Sir,

My answers are as follows:

1. Is this 'conditional' transfer allowed under TP Act?

Ans: Legally speaking conditional Gift Deed is valid with some limitations.

2. What happens to tenants who have no issues?

Ans: The family members if aggrieved may challenge such Gift Deed after your death since you are gifting the property to tenants who are not your family members and not rendered any service to you.

3. If the condition is permitted under TP Act, but the tenants do not follow the condition in future, does the subsequent purchaser get a good title?

Ans: If tenants do not follow the condition in future, the purchaser is under risk if your legal heirs claim the property to them as terms of Gift Deed were violated.

A gift is a conditional gift since it is not final until some future event takes place. If this event doesn't take place, the person making the gift can get the gift back.

It is mandatory for the donee to accept the gift, but that acceptance must occur during the lifetime of the donor, failing which the gift becomes invalid. Tenant have only lease hold  right .

1. Yes

2. No it will not be a good title