My father lent his bother 20 lakhs around 20 years back. It was agreed verbally that instead of the 20 lakhs my uncle would transfer a flat to my dad in Chennai. Now my dad has passed away unexpectedly & my uncle has agreed to transfer the property to my mum. Guideline value of the flat is 31 lakhs for UDS 10+ lakhs for building. Whats the effective way (with less stamp duty) to transfer this property? Sale deed or Settlement deed or Gift deed?
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If the flat is ancestral property then you can go for relinquish deed.
If the flat is purchased by your uncle then go for gift deed.
For relinquish deed no stamp duty ..only registration charges need to pay.
For gift deed you need to pay both stamp duty and registration charges but as compared to sale deed little bit less.
Gift deed should be executed by uncle in your mother favour
it should be duly stamped and registered
Registered Settlement deed is ideal way
Dear sir,
The best way to transferring property is a gift deed. Since your father did not have an registered deed regarding the money he lent to his brother, the settlement deed won't be applicable in this case.
Thank you
Since the transfer is not within the blood relative, the settlement deed would attract higher stamp duty as applicable, which is equal to the sale deed.
Therefore it is advisable that he transfers the property by a registered sale deed so that your mother can have a valid and marketable title to the property on her name.
- Legally a sale deed is having higher value than a gift deed or settlement deed , as generally the bank not accept gift deed or other documents for advancing loan
- Since, your uncle already accepted that he has taken the amount from your father , then he can execute a sale deed in favour of your mother after mentioning the consideration amount of 31 lakh has been received by the husband of vendee husband.
- If, he not agree for the same , then a registered gift deed is a better solution.
