• Release deed and payments

Hello,

My grand father purchased with his money agricultural land in Karnataka. He passes away. He has 6 children including my dad. 5 siblings of my father are releasing agricultural land to my father through release deeds. Each of the 5 siblings will receive a nominal payment of x lakhs and this will be mentioned in the release deed.

1. Should all the bank Cheques towards the nominal payment (x lakhs to each sibling) come from my dad only? Can my mom or my dad’s children write cheques?

2. Can my mom transfer money from her account to my fathers account and then my dad write cheques?

3. Can I transfer money to my fathers account and then he write cheques?

Thank you.
Asked 4 years ago in Property Law
Religion: Hindu

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14 Answers

1. No necessarily. Yes mom and children may issue cheques.

2. It is not necessary that the consideration for relinquishment must be paid exclusively by your father.

2. Yes! In the alternative, she may issue the cheques directly.

3. Yes! In the alternative, you may issue the cheques directly.

Vibhanshu Srivastava
Advocate, New Delhi
9426 Answers
245 Consultations

5.0 on 5.0

Did You Mention consideration Amount in Release deed?

in case, if you have mentioned the amount then you should pay it through your account.

Mohammed Mujeeb
Advocate, Hyderabad
19029 Answers
32 Consultations

4.5 on 5.0

1) all cheque’s should be issued by your father only

2) your mother can transfer funds to your father account and father can issue the cheque

3) you can transfer funds to your father account

Ajay Sethi
Advocate, Mumbai
87893 Answers
6207 Consultations

5.0 on 5.0

Hello,

1) It would be most ideal that the payment to the releasing siblings be paid by your father from his own account so that in case of any dispute by any of the parties or their heirs it can be proved that the Release was consequent to a consideration in the form of compensation your father paid.

2) Both you and your mothe may transfer funds into your father's account and he he can issue cheques for payment.

3) Ensure that the Release Deed is duly stamped and registered with the Registrar of Assurances.

S J Mathew
Advocate, Mumbai
3381 Answers
175 Consultations

5.0 on 5.0

1. No it should come from your dad only.

2. Yes this can be done

3. this also can be done

Just make sure that your dad makes the payment so that there is no hurdle later.

Regards

Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

1. One thing you shall have to keep in mind that if payment of consideratioin is shown in the said settlement deed, then it will be considered as a sale deed by the Registrar and higher amountb of stamp duty will be charged by him. So, it will not be prudent on the part of your father to mention anything about the amount paid to his siblings fo0r their releasing their share of the inherited property in favour of your father. However, in case of sale deed, there shall have to be flow of consideration from both sides i.e. share of land from their side and money from your father's side. The cheques shall have to be issued by your faher only and not by any of his family members.

2. & 3. You and your mother should transfer/remit money to your father's account for his issueing cheque to his siblings to make the sale legally valid.

Krishna Kishore Ganguly
Advocate, Kolkata
26602 Answers
726 Consultations

5.0 on 5.0

1. it will be better if all the cheques are drawn by your dad only.

2. because he will be named the 'releasee' in the release deeds

3. if the payment is made by his family members but in the deed he is made the releasee, then such a transaction will come under the purview of a benami transaction which is prohibited under the Benami Transaction Act

4. what can be done is you and your mom can transfer money to your dad's account

5. all of you will show the above amount as 'gift' in your books of account

6. your dad can then use this money to pay his siblings under the release deeds

Yusuf Rampurawala
Advocate, Mumbai
6876 Answers
79 Consultations

5.0 on 5.0

Dear Client,

On behalf of father, any family member can make the payment.

2nd & 3rd thing also permitted.

All three options permitted,no bar.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

1. It would be better if the cheque is written by dad in his name if you or your mom want to pay first gift same to father as gift is not taxable from same he can make payments.

2. Yes she can transfer as gift to father.

3. Yes,

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

Dear Sir,

Be informed that normally no issues will arrives in such family matters. However as a precautionary measure it is better to your father to transfer the amount from his own account to the accounts of his 5 siblings. Further to be more safe your father must create a documents which supports him that he received such amounts from his wife or relatives into his accounts by way loan or otherwise.

Netravathi Kalaskar
Advocate, Bengaluru
4952 Answers
27 Consultations

4.8 on 5.0

Ideally, the consideration amount paid your uncles for relinquishing their shares in the property should be paid from your father's bank account so that if any dispute arises in future, he would have no hard time proving that the funds were transferred from his account only towards consideration for executing the release date.

You or your mother can transfer money to your father's account, who can in turn write checks in favours of your uncles.

Siddharth Jain
Advocate, New Delhi
5925 Answers
101 Consultations

5.0 on 5.0

Hi, it is not necessary .. Once the release deed is made and the consideration amount is realised by the executors , it cannot be challenged in future

Hemant Chaudhary
Advocate, Gurgaon
4619 Answers
67 Consultations

4.9 on 5.0

1. There is no legal infirmity in you or your mother supporting your father financially for this purpose.

Make sure that this is reflected in your respective income tax returns.

2. She can very well do that.

3. There is no legal impediment in this arrangement.

You both can state that you have gifted this amount to your father.

T Kalaiselvan
Advocate, Vellore
78048 Answers
1543 Consultations

5.0 on 5.0

1) Yes, you and your mom can transfer money to your father's account for further distribution of cheques.

Ganesh Kadam
Advocate, Pune
12335 Answers
191 Consultations

4.9 on 5.0

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