Transfer of Property Act 1882 Section 123: How a Gift of Immovable Property Becomes Legally Valid

Section 123 of the Transfer of Property Act, 1882 tells you exactly how a gift of immovable property (like land, a house, or a flat) has to be made to be considered legal under Indian law.
It’s short, specific, and often misunderstood, which is why a lot of property transfers go wrong before they even begin.

Let’s break it down simply and clearly.

Section 123 Says This: A Gift of Immovable Property Must Be Registered, Or It’s Invalid

The most important line in Section 123 is this:

“For the purpose of making a gift of immovable property, the transfer must be effected by a registered instrument signed by or on behalf of the donor and attested by at least two witnesses.”

Translation:
If someone wants to give you a piece of land, a house, or anything that’s considered immovable property, they must do all of the following:

• Create a registered gift deed 
• Sign it themselves or through someone legally authorized 
• Get it witnessed by at least two people 

If they don’t follow these steps? The gift is not legally valid — even if they meant it, even if you took possession, even if they said so in front of family or friends.

Why Just Handing Over the Property Isn’t Enough

In some cases, people assume that handing over the keys or giving physical possession counts as a gift.
Under Section 123, it doesn’t.

Unlike movable property (like jewellery, cash, or a car), immovable property needs a registered deed to make the gift legally binding.
No paperwork = no gift in the eyes of the law.

Why So Many Property Gifts Get Rejected in Court

One of the most common reasons courts reject gift claims is a lack of proper registration.
It doesn’t matter if there was a heartfelt intention, or even if family members accepted it as true.  If the gift deed wasn’t registered and properly signed and witnessed, the court can throw it out.

The law is strict because immovable property is a serious, high-value asset. Registration protects both sides — it creates a legal record and avoids fraud or disputes later.

Are There Any Exceptions Under Section 123?

Yes, but only for movable property.

Section 123 allows movable property to be gifted through mere delivery — no registration needed.

So, if someone gives you a car or a piece of gold jewellery and hands it over with the intention to gift it, that’s legal. But land? Flat? Office space? Still needs the deed.

What Happens If You Skip Registration?

You lose legal protection. Here’s what’s at stake if you accept an unregistered gift of immovable property:

• You can’t prove ownership in court. 
• The original owner (or their legal heirs) can take the property back. 
• Banks won’t recognize your claim in case of loans or mortgages. 
• You may be liable for legal penalties if the transfer is questioned. 

In short: unregistered = risky.

Final Word: If It’s Not Registered, It’s Not a Gift

Section 123 is blunt for a reason.
It forces clarity. It makes people put their intentions in writing. And it protects future ownership from confusion or conflict.

So, whether you’re giving or receiving, don’t skip the paperwork. Registration isn’t just a technicality, it’s what makes your gift count.