Legal documentation for gifting property. am i being scammed

[generaluser123]

I want to gift a property to my relative. However the relative is insisting that i sign a stamp paper which mentions that i received a certain amount of money and sold the property over to that relative while infact no such much money payment is involved. He says that its required for legal documentation that we write in legal papers that money exchange has taken place and not that i am gifting him the property.

Why is he insisting on this is showing money exchange a legal requirement? What problems can occur if we just mention that the property was gifted in the property registery?

[HellsGuardian]

You can gift a property, it is not necessary for a cash exchange to happen. I know a relative who actually did receive cash but to avoid tax, both parties mentioned that it is a gift.

[danishmmh]

The problem with gifted property from what i recall is two fold, One is tax and second is transfer resell. If the property has been gifted then the person receiving the gift will first have to transfer it to heir and that heir will be able to sell.

Faced something of this sort when my father purchased a flat on my uncles name, as he was not in country. The flat was then gifted to my father. While selling it he had to first transfer it to my sisters name and then she sold off the property.

This is all when we were minors, so for selling he had to wait till my sister became 18.

So yes there are some issues. But you have to be careful as well because if you shoe the property as sold then you will also have to list it on FBR as amount received and that will be taxation in you.

[TM]

Ok now I am jumping in... trust me I have no legal knowledge

A friendly mushwara talk to a lawyer about this. What I know if the said property is your own and not a family inherited there is no problem in gifting it to anyone (if your relative is not interested... Sir hum hain na )
But in case if you recived this from your family, your relative just wanted to play safe for future that no one else from you family goes to the court and claims share in that property.

But still as I said above, lawyer is the best option. You dont want to give anything in writing aur phir FBR aap key pechay.

[Panther]

Gifting a property to a relative saves him taxes and transfer fees. In CDA usual transfer procedure is followed and the one who recieved property as gift becomes the rightful owner and can sell it further without problems.
If you show in documentation that you sold the property than you may have to pay tax.
However , to be on safe side consult a property lawyer