• Protecting title and transferring property to children where relatives verbally assert rights

A Hindu family matter in Jharkhand. The relationships are as follows.

X and his wife Y had two sons, A and B. P is the wife of A.

The chain for the property is as follows. Y purchased it from an outside seller through a registered sale deed. A few years later, Y sold it to P by registered sale deed. Since then the mutation stands in P's name, she has remained in continuous possession, and rent has been paid in her name.

The descendants of B occasionally assert rights in the property verbally. In over fifty years they have filed no objection, no suit, nothing. B claims they have some document which proves their right, and this document is unknown to A, Y and their family. 

P is now elderly and wishes to secure the title & transfer the property to her children during her lifetime.

1. What is the position of the descendants of B in respect of property that Y purchased in her own name and later sold through a registered deed?
2. What steps can P take now, while she and A are alive, to protect the title against claims that may be raised in future?
3. What is the appropriate manner of transferring the properties to her children in these circumstances?
Asked 2 months ago in Property Law
Religion: Hindu

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13 Answers

As Y purchased the property from an outside seller via a registered sale deed using her own funds, the property is her self-acquired property under Hindu law. It never held the character of ancestral or coparcenary property. Y had the unconditional right to alienate, sell, or gift the property to anyone without seeking consent from her husband, sons (A or B), or any extended relatives. The transfer from Y to P via a registered sale deed transferred absolute title to P hence neither B nor his descendants have any legal share, claim, or right of inheritance in this property. Any attempt by B’s descendants to challenge the sale deed now is barred by limitation (Article 58/59 of the Limitation Act, 1963 imposes a 3-year limit from the date of knowledge or execution).

P can file a civil suit under Section 34 & 38 of the Specific Relief Act, 1963 in the local Civil Court (Jharkhand) seeking a formal declaration of her absolute title and a permanent injunction restraining B’s family from interfering with her possession or asserting false claims. P can issue a formal public notice through an advocate in local daily newspapers (Hindi & English) stating her sole title and continuous possession, inviting any claims within 15 days, and declaring that any unrecorded claims are null and void.

As P is elderly and wants the transfer executed during her lifetime, she can do so by executing a registered Gift Deed in favor of her children during her lifetime. This will extinguish P's ownership and vests full title directly in her children while she and A are alive to support it. Then it will become difficult to challenge in court once registered and accepted by the children. P can also execute a registered Will bequeathing the property in favor of her children but Will only takes effect after death. B's descendants might attempt to create friction or challenge the Will's validity during probate/mutation after P passes away.

If B’s descendants attempt physical or verbal obstruction during or after this process, file a Suit for Injunction in the competent local civil court.

 

T Kalaiselvan
Advocate, Vellore
91264 Answers
2528 Consultations

Descendants of B have no share in property as mother had during her lifetime sold it to her daughter in law through registered sane deed 

 

2) P can transfer property to her children through conditional gift deed 

 

3) Y can be one of the witnesses to gift deed 

Ajay Sethi
Advocate, Mumbai
101056 Answers
8259 Consultations

On the facts stated, P appears to have a substantially stronger title than a person merely claiming an interest through B.

  1. Rights of B's descendants

If Y acquired the property from an unrelated third party through a registered sale deed in her own name, the starting position is that the property was her property. If she subsequently executed a registered sale deed conveying it to P, P's title would ordinarily flow from that registered conveyance.

The descendants of B cannot acquire an interest merely because B was Y's son or because they assert that the property was somehow ancestral. If they claim that the property was actually joint/ancestral property, or that Y's purchase or subsequent sale to P was legally ineffective, the burden would generally be upon them to establish the factual and legal basis of that claim.

The mutation and payment of rent in P's name are supportive circumstances, although mutation by itself is not conclusive proof of title.

The alleged "document" said to establish B's rights is therefore important. Until that document is produced and examined, it is difficult to say what right, if any, it creates.

  1. What can P do now?

Given P's age and the long period of possession without any suit or formal objection, I would not wait until an actual dispute is filed.

First, P should collect and preserve the complete title chain: Y's original sale deed, Y's sale deed in favour of P, mutation records, rent/property-tax records and other possession-related documents.

If there is a genuine concern that the alleged document may surface later, one practical step is to conduct an appropriate title/document search in the relevant registration and revenue records to determine whether any earlier deed, settlement, partition or other instrument exists which could explain B's alleged claim.

If the title documents disclose a genuine cloud over P's title, a civil proceeding for appropriate declaratory/injunctive relief may be considered. But I would not recommend filing litigation merely because somebody is making occasional verbal assertions, without first identifying what document or legal basis they rely upon.

The fact that no objection or suit has apparently been brought for more than fifty years is certainly relevant, but long possession alone should not be treated as an automatic answer to every possible title claim. Limitation and adverse possession depend upon the nature of the alleged right and the manner in which possession has been held.

  1. Transfer to P's children

If P has clear title and wishes to transfer the property during her lifetime, the appropriate instrument would ordinarily be a registered gift deed, particularly where the transfer is intended to be without consideration.

However, the manner in which the gift is structured matters. If P wants to retain the right to live in or use the property during her lifetime, that should be expressly protected in the deed rather than left to an informal understanding.

Alternatively, depending upon her objectives, a family settlement or other properly structured transfer may sometimes be more appropriate. The choice should be made after considering whether she wants to retain possession, income, control or a life interest.

I would particularly avoid executing a transfer merely on the assumption that the verbal claims of B's descendants are irrelevant. Before transferring the property, the entire title chain and the alleged document referred to by B's descendants should ideally be examined. If the title is clean, a properly drafted and registered lifetime transfer can provide considerably greater certainty than leaving the property to be dealt with after P's death.

Indu Verma
Advocate, Chandigarh
366 Answers
10 Consultations

Dear SIr/Madam,

In the circumstances mentoned in your query the best way should be that the P transfers the property to her children by way of gift deed mentioning the chain of the property. This way, she will be able to remove all hurdles and possible disputes with B and his legal herirs.  

Ganesh Singh
Advocate, New Delhi
7374 Answers
16 Consultations

1. there is right title or interest of B's descendants in the property as P is the absolute owner of the property.

2. she may gift the property to her children by way of registered Gift deed or by way of Sell.

 

Nadeem Qureshi
Advocate, New Delhi
6395 Answers
302 Consultations

gift deed or family settlement deed can be executed for the same. 

Prashant Nayak
Advocate, Mumbai
35377 Answers
257 Consultations

Based on the facts stated by you, if Y acquired the property in her own name through a registered sale deed from an independent third-party seller, the property would ordinarily be treated as her individually acquired property and not as ancestral/coparcenary property merely because she belonged to a Hindu joint family. Y was therefore generally competent to subsequently sell the property to P through a registered sale deed. If P's sale deed is valid, the mutation is in her name, she has remained in possession and property/rent revenue has consistently been paid in her name, these circumstances collectively provide substantial documentary support for her title.

The descendants of B do not acquire a right merely by making a verbal assertion that the property belongs to the family. If they contend that they have an independent or inherited interest, the burden would ordinarily be upon them to establish the source and legal basis of that alleged right. The alleged document referred to by them should therefore be specifically identified and obtained. It is important not to proceed on the assumption that their claim is baseless merely because no litigation was filed for 50 years; the nature and date of the alleged document and the circumstances surrounding it must first be examined. At the same time, such prolonged absence of any objection, claim or litigation, coupled with P's continuous possession and registered title documents, can be significant factual circumstances in P's favour.

Since P is elderly and wishes to settle the property during her lifetime, I would first recommend undertaking a proper title verification before transferring it further. The complete chain of registered documents should be obtained and examined, including Y's original purchase deed, Y's subsequent registered sale deed in favour of P, the relevant mutation/revenue records, rent receipts, encumbrance records and, importantly, a search of the registration records to ascertain whether any prior deed, transfer, mortgage, gift, settlement, release or other document exists in respect of the property. If the descendants of B are asserting that they possess a particular document, a copy of that document should also be obtained and legally examined rather than dealing with the assertion merely at the verbal level.

If the title search confirms P's title and no legally sustainable competing interest is found, P can transfer the property to her children during her lifetime through a properly drafted and registered Gift Deed or Settlement Deed, depending upon the precise family arrangement and her objectives. The deed should clearly identify the property, recite P's source of title and contain appropriate declarations regarding her ownership and possession. After registration, mutation should also be carried out in favour of the children and the original title documents should be preserved safely.

However, if P's principal concern is that the descendants of B may subsequently challenge her title, I would not recommend transferring the property to the children before first completing the title investigation. A transfer does not cure a defective title; the children would generally receive only the interest that P herself validly possesses. If the alleged document of B's descendants reveals a genuine competing claim, it is better to address that issue while P is alive and capable of producing the historical evidence and explaining the transaction.

In the circumstances, the safest course would therefore be to first establish and document P's title comprehensively, obtain a formal title-search/title opinion, investigate the alleged document relied upon by B's descendants, and thereafter execute a registered Gift/Settlement Deed in favour of the children. If the alleged claim is serious and supported by some document, further preventive proceedings may also be considered after examining that document. for a detailed legal advise you can connect on https://share.google/jCbuYXivLzFBy0dSK

 

 

Yuganshu Sharma
Advocate, Delhi
1667 Answers
5 Consultations

Dear Client,

As Y purchased the property in her own name and then sold it to P through a registered Sale Deed, P is usually considered the lawful owner, and B’s descendants may not get immediate share merely because they are family members. If they claim otherwise, they have to produce a valid document establishing their title or interest. P may preserve the complete chain of Sale Deeds, mutation and rent records and conduct a title search to check for any undisclosed claim or litigation. You are advised to consult a local lawyer with all relevant details.

Thank you for contacting us, if you have any further queries kindly do not hesitate to contact again. Thankyou.

 

Anik Miu
Advocate, Bangalore
11554 Answers
127 Consultations

The legal position turns on the fact that Y purchased the property in her own name through a registered sale deed, and later sold it to P through another registered sale deed. The descendants of B have no recorded interest in the chain of title.

1. What is the position of the descendants of B in respect of property that Y purchased in her own name and later sold through a registered deed?

The descendants of B have no legal standing. A registered sale deed conveys absolute title, and the failure of B's descendants to file any suit or objection for over fifty years means any claim is now barred by limitation under Article 65 of the Limitation Act, 1963, which prescribes twelve years from when possession becomes adverse. A registered deed cannot be challenged after such a prolonged period of continuous, open, and peaceful possession by P.

2. What steps can P take now, while she and A are alive, to protect the title against claims that may be raised in future?

P should file a suit for declaration of title and permanent injunction against B's descendants, impleading them as parties to bind them by the decree. The suit must be based on her registered sale deed and long possession. Simultaneously, she should publish a public notice in local newspapers asserting ownership and gather municipal records, rent receipts, and mutation documents. A declaratory decree will conclusively establish her title and prevent future verbal claims.

3. What is the appropriate manner of transferring the properties to her children in these circumstances?

P can transfer the property during her lifetime through a registered gift deed, which is irrevocable and immediately vests title in the children. Alternatively, she can execute a registered will, which takes effect after her death. Given the verbal claims by B's descendants, a gift deed is preferable because it creates an immediate, registered transfer that is harder to challenge than a will, which can be contested in probate proceedings.

Lalit Saxena
Advocate, Sonbhadra
536 Answers

Jharkhand does not offer a specific waived or reduced stamp duty concession for gifts to blood relatives. The uniform 7% overall registration/stamp cost generally applies regardless of your close familial relationship.

 

2) The Jharkhand registration system portal at JharNibandhan (integrated with the National Generic Document Registration System - NGDRS). Under the property valuation modules, select the District, Anchal (Circle), and Mauja to calculate the minimum government evaluation value.

Ajay Sethi
Advocate, Mumbai
101056 Answers
8259 Consultations

In Jharkhand, property transfers typically attract 4% Stamp Duty and 3% Registration Fee (totaling ~7% of the property value). Unlike some Indian states that offer zero or flat nominal stamp duty on transfers to close family, Jharkhand does not offer a blanket exemption or heavily reduced stamp duty rate for gift deeds to blood relatives.Duty is calculated on the fair market/circle rate value.

You can access the official property valuation portal via the Jharkhand National Generic Document Registration System (NGDRS) website (ngdrs.gov.in) or the Jharkhand Land Records / Revenue Department portal.

You can also inspect the physical MVR chart displayed at the Office of the Sub-Registrar having jurisdiction over the area where the property is located.

Registration of a Will is not legally mandatory under Section 18 of the Registration Act, 1908, but doing so creates a strong legal presumption of authenticity.

 

Section 67 provides that a bequest to an attesting witness (or to the husband/wife of an attesting witness) becomes void. However, because the grandson is not named as a beneficiary himself, his attestation does not automatically invalidate the Will or his father's bequest under Section 67.

Aggrieved relatives contesting the Will can argue that the grandson had a direct personal/financial interest in ensuring his father received the property (since he stands in line to inherit from his father later), creating a suspicious circumstance surrounding the execution of the Will. To avoid any allegation of undue influence or bias, do not use family members, legal heirs, or their immediate descendants as witnesses.

Select two completely independent, disinterested third-party witnesses (such as a family doctor, advocate, banker, or long-standing neighbor) who hold no financial interest in the outcome of P's estate.

 

T Kalaiselvan
Advocate, Vellore
91264 Answers
2528 Consultations

Gift Deed Route: In Jharkhand, the stamp duty on a gift deed is 3% of the government value (circle rate) of the property when executed in favour of a blood relative. For non-blood relatives, the stamp duty is higher at 5%. Registration charges are an additional 3% of the deed value. The circle rate for any property in Jharkhand can be checked online through the official Jharkhand e-Nibandhan portal at https://regd.jharkhand.gov.in or via the NGDRS Valuation Portal, where you can select the district, Aanchal, Mauja, and property category to view the applicable rate.

Registered Will Route: To strengthen the document chain, key additional steps include notarisation of the Will and registration with the local sub-registrar, both of which are optional but highly recommended. Maintaining clear witness records with contact details, storing the original Will securely, and avoiding contradictory documents are also crucial. A comprehensive video record of the testator reading out the Will and confirming execution before the Registrar provides strong corroborative evidence. Obtaining a probate from the competent court further conclusively establishes the Will's validity.

Witnesses: Yes, the grandson can act as a witness. Under Section 63 of the Indian Succession Act, 1925, a Will must be attested by two or more witnesses, and Section 68 explicitly states that no person shall be disqualified as a witness merely by reason of interest in the Will. However, under Section 67, any bequest made to the attesting witness or their spouse becomes void. Since the grandson is not a named beneficiary and his father's bequest is separate, the Will remains valid and the father's inheritance is unaffected.

Lalit Saxena
Advocate, Sonbhadra
536 Answers

Yes you can do the above as stated all of above is legal but for witness it’s better the person is independent and not from family 

Prashant Nayak
Advocate, Mumbai
35377 Answers
257 Consultations

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