• Settlement deed

My wife and her brother are co-owners of an apartment in Chennai, being legal heirs of their mother (now deceased) and who owned this property.

My brother-in-law wishes to sell his share of the property for a consideration to my wife/ myself.  We need legal advice for the following:

1) Can the transfer be registered through a settlement deed, and if so, what is the procedure, where it has to be registered, stamp duty etc

2) Does the property first need to be transferred into my wife and brother-in-law's names before the settlement deed can be issued, or can it be done on the basis of the Legal Heirship certificate? 

3) What happens if the property need to be sold to a third party? Can it be done on the basis of LHC, or would a succession certificate be needed before the property can be sold or transferred?

4) Would the settlement deed be irrevocable later on by the issuer?  What precautions need to be taken by the beneficiary of the settlement deed?

5) Would the consideration amount be mentioned in the settlement deed, and if so, what are the consequences with respect to duties in Chennai?

6) Can the consideration amount be paid by me and the settlement deed made in favour of my wife?  Or would it have to be made in favour of me, being the financier?  What would be the implications for settlement deed in favour of my wife vis-a-vis issued in favour of me?

7) How long would the process take?
Asked 3 years ago in Property Law
Religion: Hindu

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9 Answers

1) property has to be transferred in name of your wife and BIL then only deed of settlment can be executed 

 

2) if your wife and brother in law are the only legal heirs on bais of LHC mutation can be done and you cna sell the property 

 

3) please note that succession certificate is only for movable debts and securities 

 

4) for immovable property you need letters of administration 

 

5) consideration amount would be mentioned in deed of family settlement 

 

 

6)you can transfer consideration amount to your wife account . she can then pay your BIL 

 

7) it should not take more than a month 

 

 

 

 

Ajay Sethi
Advocate, Mumbai
87947 Answers
6207 Consultations

5.0 on 5.0

1. Yes, it can be done through a settlement/relinquishment deed. Necessary applicable stamp duty along with registration fee needs to be paid at the time of getting this deed registered in the office of the concerned sub-registrar.

2. If a legal heirship certificate has been obtained already, get this property mutated in the name of your wife and BIL in the records, on the strength of the LHC.

3. Can be done on the basis of the LHC, once mutation is done. 

4. Yes, the transfer under the deed should be irrevocable. Get this deed drafted through a lawyer and then execute it.

5. Yes, the consideration needs to be spelt in the deed.

7. Process will take around 30-60 days, depends on how quickly the mutation is done. 

Vibhanshu Srivastava
Advocate, New Delhi
9426 Answers
245 Consultations

5.0 on 5.0

Too many questions. You would understand that a detailed consultation can be had by engaging in face to face discussion. 

Can we talk ?

My number is available in google. 

Regards 

G.Rajaganapathy 

Lawyer 

High Court of Madras 

 

Rajaganapathy Ganesan
Advocate, Chennai
2085 Answers
8 Consultations

4.9 on 5.0

1. You should purchase the share through sale deed or relinquishment deed in favour of wife., it should be registered and stamp duty for same shall payable and it need to be registered with sub registrar.

2. Mutuation need to be done in favour of wife and brother in law.

3. Mutation is required succession certificate not required it is for movable assets not property 

4. Registered deed cannot be revoked without order of court.

5. Yes the amount need to be mentioned 

6. You can lay and it can be registered in favour of wife 

7 Registration takes just day or two 

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

Dear client,

Execute release deed , less stamp duty and irrevocable.

It can be sell through LHC.

Mentioning consideration between family members have no effect on stamp duty.

If you will pay than , stamp duty will be more, mention she has paid by taking loan.

Single day.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

It can be settled with Registered partition deed. No need of transfer. Sale deed and NOC of legal heirs is enough. It can't be revoked as it's with consent. If you need revocable then you can put such clause in it. Consideration amount will be a factor for stamp duty applicability. There can be a common partition deed.

Prashant Nayak
Advocate, Mumbai
27275 Answers
88 Consultations

4.4 on 5.0

1. Execute a settlement deed at jurisdiction SRO you have to pay stamp duty and registration charges consult a  local lawyer. 

2.after mutation property on both name you can sell the property. 

3.bank deposits, shares, loans, or other securities, the succession certificate is required. 

4.The Settlement Deed could not be revoked by way of cancellation deed unilaterally. 

5.amount need to be mentioned. 

6. Within week.

Mohammed Mujeeb
Advocate, Hyderabad
19031 Answers
32 Consultations

4.5 on 5.0

1. For low stamp duty, your brother in law can execute a registered release deed relinquishing his rights in her favor or by executing a registered settlement deed, which also involves lesser stamp duty.

2. It already devolves on their names hence there is no necessity to get them transferred to individual's name, just the registered document as suggested will be sufficient.

3. It can be sold on the basis of the legal heirship certificate itself.

4. The registered settlement deed is an irrevocable document.

5. The consideration amount can be mentioned, the donor may have to pay the long term capital gains tax if any applicable.

6. You can pay the amount on behalf of your wife.

7. If everything is ready it may not take more than a day.

T Kalaiselvan
Advocate, Vellore
78104 Answers
1543 Consultations

5.0 on 5.0

  1. As per the information mentioned in the present query, makes it clear that the property has still been registered on joint names, they have been sharing jointly in the basis of the legal heir certificate.
  2. As per law, he can sale his share to your wife and if it is you then an affidavit with your wife’s consent.
  3. It must include sale consideration including the stamp duty to be paid to the revenue department.
  4. So, eventually the answer in positive as the same can be sale off on the basis of the legal heir certificate only also.

Sanjay Baniwal
Advocate, South Delhi
5464 Answers
13 Consultations

5.0 on 5.0

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