You have stated that two years ago you purchased a resale flat from a widow (seller) and her two sons. The original male co-owner (husband) had died earlier, and to perfect the title before sale, a release deed was executed by the widow and both sons releasing their shares inter se, followed by a registered sale deed in your favour. Prior to the sale, you also caused a seven-day public notice to be published in two newspapers, and no objections were received.
Recently, you have learned that the deceased co-owner (husband) also had a married daughter who was living in Pune and had predeceased the sale transaction. That daughter had a minor daughter, who was around sixteen years old at the time of your purchase. The seller and her sons, who are now residing in Canada, acknowledge this but explain that since the granddaughter was a minor, they did not consider it necessary to include her as a party in the release deed. They now propose to execute an additional release deed, by which the granddaughter, now 18 years of age, will release her undivided share in favour of her grandmother (the seller), represented by her father (the deceased daughter’s husband) acting under a power of attorney (POA).
Legally speaking, this situation involves two issues — (a) the validity of your existing title, and (b) the manner in which it can be regularised.
Under Hindu Succession Act, 1956, when a Hindu male dies intestate (without a will), his property devolves equally among his Class I legal heirs — namely, his widow, sons, and daughters. If any of those heirs die before the property is partitioned, the share of that deceased heir passes to his or her legal heirs (in this case, the deceased daughter’s share passes to her own child, i.e., the granddaughter). Therefore, at the time of your purchase, the granddaughter was a co-owner of the property by inheritance, holding her late mother’s one-third share of the husband’s interest.
Because she was not made a party to the earlier release deed or to your sale deed, her share technically remained outstanding. The release deed and sale deed you obtained are valid only to the extent of the shares of the widow and sons. You effectively acquired an imperfect or defective title to the extent of the granddaughter’s inherited share.
Now that she is a major, she has the full legal right to execute a release deed or ratification deed relinquishing her inherited share in favour of her grandmother (the seller) or directly in your favour, depending on how the corrective document is structured. Such a release deed will validly and lawfully transfer her interest. Once it is registered, your title becomes complete.
However, a few precautions are essential:
1. The granddaughter must execute the deed personally, as she is now a major. Her father (the deceased daughter’s husband) can sign as a confirming party or witness, but not as attorney on her behalf. A POA for this purpose is not appropriate, as it raises questions about consent and consideration. The better approach is for her to sign in her own capacity before the Sub-Registrar in India.
2. The new release deed should be registered at the same Sub-Registrar Office where the property is situated, with full recitals explaining the earlier omission and the fact that she is relinquishing any residual or inherited right.
3. You, as the purchaser, should be added as a confirming party or beneficiary to that release deed, so that the document expressly records that it is executed to confirm and regularise the earlier sale in your favour.
4. You do not need to amend or cancel your original sale deed. Instead, the new release deed acts as a supplementary document curing the defect. You may later file both documents together with your society or association for updating records.
Regarding stamp duty and registration charges, a release deed executed in favour of a non-family member (i.e., not among the defined “family” under the Stamp Act) attracts stamp duty equivalent to a conveyance. However, in your case, the release will likely be made in favour of the grandmother (family member), which attracts nominal stamp duty (usually ₹500–₹1,000, depending on local rates in Andhra Pradesh). Registration fee is 1% of the market value or consideration mentioned, subject to a cap. If you are added merely as confirming party, no separate duty is payable by you.
After registration, you should have the document indexed and linked to your sale deed at the Sub-Registrar Office, and obtain an updated Encumbrance Certificate (EC) reflecting the release. This will show a clear chain of title.
If, for logistical reasons, the granddaughter is unable to travel to India, she may execute a Special Power of Attorney before the Indian Consulate abroad, authorising her father to sign on her behalf specifically for relinquishing her inherited rights. The POA must then be adjudicated in India under the Indian Stamp Act before registration of the release deed. This process is legally valid but must be precisely worded.
You are advised to avoid any unregistered or notarised documents. Only a registered release deed or confirmation deed will protect you against future claims. Once the release deed is properly executed and registered, there is no need to re-register your sale deed or pay fresh stamp duty on it. The existing sale deed remains valid; the release deed will be annexed as supporting document in any future title verification.
In summary, the correct and legally safe course of action is as follows:
1. Obtain a registered release deed from the granddaughter (now major) relinquishing her inherited share either directly to you or to her grandmother (seller).
2. Ensure it is signed personally or via consular POA, and properly registered at the property’s jurisdictional Sub-Registrar Office.
3. Record yourself as confirming party.
4. Obtain a fresh Encumbrance Certificate post-registration.
5. Keep both documents (sale deed and release deed) together as your complete title record.
You do not need to amend your original sale deed, nor do you need to pay fresh stamp duty on it. The new release deed will regularise your title and prevent any future disputes or claims.