Gifting of property is governed under Section 122 of the Transfer of Property Act, which defines gifting as:

“…the transfer of certain existing moveable or immovable property made voluntarily and without consideration, by one person, called the donor, to another, called the donee, and accepted by or on behalf of the donee. Such acceptance must be made during the lifetime of the donor and while he is still capable of giving. If the donee dies before acceptance, the gift is void.”

The primary purpose of gifting property is gratuitous—that is, it is given without expecting anything in return. The term “voluntarily” indicates that the gift is made out of the donor’s own free will, without any external pressure. This, along with the absence of consideration (i.e., no financial or material exchange involved), distinguishes a gift from a sale or contract, where compensation or consideration is expected.

Thus, a property gift must be made willingly by the donor, and accepted by the donee during the donor’s lifetime for it to be legally valid. If the donee passes away before accepting the gift, the gift becomes void.