A gift of deed is a legally binding contract that transfers the ownership of a real estate property from one person to another, according to the Real Estate Lawyers. The donor, the person that gives the gift of deed, hires a real estate attorney to draft, review and file the necessary legal paperwork required to transfer the property to the donee, the person who receives the gift.
According to the Real Estate Lawyers, a gift of deed contract must be witnessed by at least two uninvolved parties. There is no transfer of money between the two parties since the real estate in question is a gift.
Two types of gift of deed real estate contracts exist, according to Law Depot Law Library. The first is a revocable gift of deed that the donor keeps until she desires to give it to the donee. Under a revocable gift of deed, the donor can change her mind and revoke the gift of deed at any time. Under an irrevocable gift of deed, the donee becomes the legal owner of the property once the donor physically gives the legally binding transfer of ownership contract to the donee. The donor can never revoke this type of deed or later ask for monetary compensation for the gift.