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?
Sale deeds are better when there is risk of your relatives challenging the transaction in court. Other than that I see no problem with a registered gift deed provided you have possession of property. With sale, possession is not as important.
I dont see any other reason or "any legal requirement" for money exchange at all!