I and my son in law have jointly purchased a flat of 1300sqft. It was registered on our both names @650 Sq ft each in two separate registrations. Now my son-in-law who is an a NRI wants to withdraw from the said property by disposing of his share of 650Sq.Ft since it is an independent registration document. It was suggested to him that I will take his share in my wife's name who is also his mother-in-law and will pay the total amount he invested to him. Out of the options available i.e Sale deed, Gift deed , Settlement deed Kindly inform us which one is best. Is settlement deed is good and safe. Regards Muralimohan
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1. Let your son-in-law execute a registered Gift Deed in favour of his wife (your daughter) in the jurisdictional Sub Registrar's Office.
2. Then your daughter can gift it to your wife by executing a registered Gift Deed in the jurisdictional Sub Registrar's Office.
3. Based on above, your wife becomes joint owner with you for the flat.
4. This route is suggested to save stamp duty if the property were to be in the State of Karnataka.
Both my daughter and son-in-law live abroad. I am trying to obtain the notarised POA from my son in law in my name to execute the deed. If I follow your advise I may have to take the PoA (Power of Attorney) twice, first I should have the PoA from my son-in-law to make a gift deed in my daughter's name and then another PoA from my daughter for making the gift deed in my daughter's name. Property is in the state of Andhra.
Since your son in law is not a blood relative, it is not possible to transfer the property by a settlement deed, hence he can transfer his property by a registered gift deed or by a registered sale deed.
For gift deed and sale deed the stamp duty payable is same, hence it would be advisable that he executes a registered sale deed itself in order to avoid any future ambiguity.
What you have asked in your question is the answer.
first get Gift deed done between Husband and wife (your daughter) and later on from your daughter to parents gift deed. via POA. but for first transaction your daughter should come in India.
here you can save stamp duty and registration charges and just pay normal legal charges.
As far as I know if son-in-law authorises his father-in-law, who is not a blood relative through POA, then for adjudication of the POA in India, the stamp duty may be around 5% of the value of the property. To avoid this huge stamp duty, I had suggested earlier the route to avoid it.
Settlement deed or relinquishment deed
Your son in law should execute gift deed in his wife name
gift deed should be stamped and registered
If son in law is unable to come down to india he should execute Special POA in favour of family member ie close blood relative
POA should be attested before Indian consulate
he should not execute POA in your favour at it would attract higher stamp duty
Sale deed is the best mode of transfer. You can take POA of son in law and can execute sale deed in favour of wife.
Your son in law can send a POA deed in favor of any close blood relatives in India, wo will inturn execute a gift deed in your daughter's favor.
Simultaneously you can obtain a POA deed from your daughter in law in your favor to accept the gift deed.
Don't get confused by too many meanings.
You cannot get two POA deeds in 6favor for the same reason
Gift of immovable property from Son-in-law to mother-in-law is allowed as per foreign exchange laws. But, mother-in-law has to bear the taxability on such gift and for the purpose of taxability, stamp duty value of the immovable property will be determined and accordingly the tax will be levied.
The best way to transfer the property from your son-in-law to your wife is through a gift deed. A gift deed is a legal document that transfers ownership of a property from one person to another without any consideration. This means that you will not have to pay any stamp duty or registration fees.
If you are not comfortable with using a gift deed, you can also use a sale deed or a settlement deed. However, these documents will require you to pay stamp duty and registration fees.
Your son-in-law can issue a Power of Attorney (POA) deed to a close blood relative in India, who will then execute a gift deed on behalf of your daughter.
At the same time, you can also obtain a POA deed from your daughter-in-law, allowing you to accept the gift deed.
To clarify, you cannot obtain two POA deeds for the same purpose.
