Oral settlement, no stamp duty payable.

Well best way out to avoid stamp duty is - Execute partition document only detailing how the properties are to be dealt with in future.

Otherwise registered partition deed.

Partition deed is best mode for partitioning the property. After amendment of stamp Act, stamp duty is payable on partition deed and also on settlement deed. On the basis of partition deed you could avail loan also. 

You can enter into deed of family settlement for division of property by metes and bounds 

it has to be stamped and registered 

Mandatory to pay stamp duty and registration charges on deed of family settlement or partition deed 

you can get loan on your share in property 

- The main difference between the two is that , a MOU does not require registration and stamping, but a partition deed requires registration. 

- If the Partition deed will not registered , then the bank will not consider it for granting loan . 

- Further, for removing future problems , the deed must be registered. 

- You can enter into any of the two , i.e. family settlement deed or Partition deed . 

Yes for any documents through which rights in immovable property is.transferred it has to be compulsorily registered and stamp duty needs be paid

You can register Settlement/Partition  Deed amongst all the stated parties by dividing the said property by metes and bounds by paying the stamp duty and registration fee.

1. You shall have to pay stamp duty and registration fee while registering the partition deed,

2. You shall have to deposit the original partition deed to the bank for creating mortgage on your share of the property while availing loan from the Bank.

1.  Registered Partition Deed amongst 5 persons clearly demarcating individual boundaries by metes and bounds in the jurisdictional Sub Registrar's Office would suffice.

2.  Only registered Partition Deed is legal and hence applicable stamp duty and registration charges have to be paid as per Indian law.

3.  After registered Partition Deed in your favour is completed, you would be entitled to take loan on your share of demarcated/partitioned property.

4.  Registration of MOU would be necessary if there's intent of division of property amongst the signatories.

Dear Client 

The requirement to pay stamp duty for a Memorandum of Family Settlement (MOFS) or a family partition deed in India depends on the laws and regulations of the specific state in which the property is located. Stamp duty is a state subject, and each state in India has its own Stamp Act that governs the payment of stamp duty on various types of documents, including property-related agreements and deeds.

In general, when there is a transfer of property involved, as is often the case with family partition deeds or MOFS, stamp duty is typically applicable. The rates and rules for stamp duty vary from state to state and may also depend on factors such as the property's value, the type of property, and the relationship between the parties involved.

If stamp duty is applicable, it is generally required to be paid on the document before it can be considered legally valid and admissible as evidence in court. Failing to pay the required stamp duty can lead to legal issues and disputes.

Thank you

You can sort out the division of properties or payments to be made to the shareholder who is ready to take consideration in lieu of a share in the  immovable asset and all other mutually agreed conditions reduced to writing on a family settlement deed, duly registered would be a better mode of settling the issue peacefully.  

The MOU in this regard can also be executed but that will be a risk in respect of future  developments especially when a shareholder is desirous of development and approaching bank for loan. 

The bank will grant loan on the registered title document only and for that you may have to pay the stamp duty as applicable.