RES LEARN · PAPER 1 · CU 2

2.7 Gift

A gift transfers property without purchase consideration, subject to the required formalities.

Decoded in 30 seconds

A gift transfers property without purchase consideration, subject to the required formalities. The donor gives; the donee receives.

What you will learn

  • Donor and donee
  • Intention
  • Transfer and acceptance
  • Formalities
  • Tax and restrictions

Core concepts at a glance

ConceptExplanation
Donor and doneeThe donor gives; the donee receives.
IntentionA genuine intention to give must be established.
Transfer and acceptanceThe relevant transfer and acceptance requirements must be satisfied.
FormalitiesLand gifts require appropriate instruments and registration where applicable.
Tax and restrictionsA gift is not automatically exempt from stamp duty or ownership restrictions.

1. Donor and donee

The donor gives; the donee receives.

2. Intention

A genuine intention to give must be established.

3. Transfer and acceptance

The relevant transfer and acceptance requirements must be satisfied.

4. Formalities

Land gifts require appropriate instruments and registration where applicable.

5. Tax and restrictions

A gift is not automatically exempt from stamp duty or ownership restrictions.

Visual guide: Gift of property

A topic-specific diagram to help you connect the concepts, rather than memorise isolated keywords.

Gift of property: Donor — Intends to give; Donee — Receives the gift; Formalities — Check required transfer steps; Consequences — Consider title and tax rules
Original ExamDecoded learning diagram · Unit 2.7
↓ Download visual guide (SVG)

How to read this diagram

  1. Donor: Intends to give.
  2. Donee: Receives the gift.
  3. Formalities: Check required transfer steps.
  4. Consequences: Consider title and tax rules.
Exam takeaway: A stated intention to give property does not by itself prove a completed legal transfer.

Apply it to a Singapore property scenario

Scenario

An owner wishes to give a property to a relative without receiving payment.

How to approach it: Identify gift formalities and check applicable duties and ownership restrictions.

Common exam trap

No purchase price means no transaction costs or legal requirements.

Remember: Gift transactions may still trigger legal and fiscal obligations.

Exam tip: Identify the parties, interest or legal relationship first. Then apply the relevant concept to the stated facts rather than choosing an answer based on a familiar keyword alone.

Quick revision

  • Donor and donee: The donor gives; the donee receives.
  • Intention: A genuine intention to give must be established.
  • Transfer and acceptance: The relevant transfer and acceptance requirements must be satisfied.
  • Formalities: Land gifts require appropriate instruments and registration where applicable.
  • Tax and restrictions: A gift is not automatically exempt from stamp duty or ownership restrictions.

Practice MCQs

Choose one answer per question, check your score and review the explanations.

1. Which statement describes donor and donee?

The donor gives; the donee receives.

2. In this unit, which statement is correct about intention?

A genuine intention to give must be established.

3. Consider this scenario: An owner wishes to give a property to a relative without receiving payment.

Identify gift formalities and check applicable duties and ownership restrictions.

4. Which statement is an exam trap rather than a reliable rule?

Gift transactions may still trigger legal and fiscal obligations.

Official resources

For current Singapore legislation and agency guidance, refer to Singapore Statutes Online, CEA. Check the requirements applicable to your examination sitting.