Property subdivision and registration
My dad and uncle bought property together few years back. They have not divided the property for each one of them. Now they want to transfer the property to their sons. What would be the recommended process to avoid one more registration fees?
Asked in Property Law from Coimbatore, Tamil Nadu
The properties bought under a sale deed shall be the absolute properties of the buyers.
They can transfer the properties to their sons or relatives or to the persons of their choice by executing a registered settlement deed or registered gift deed or a rgistered sale deed insofar as their respective undivided share in the property is concerned.
Alternately they can execute a duly registered partition deed between themselves and can go ahead with their proposal accordingly in respect of their individual share in the property is concerned.
But please remember that all the transaction with regard to transfer of immovable property shall be done only by a registered deed and any unregistered deed is invalid in the eyes of law. So you cannot avoid the stamp duty involved for the registered deed.
1. Let your father and your uncle execute Gift Deed to their respective Sons. The Gift takes effect immediately.
2. Or else your father and uncle can execute 'WILL' in favour of respective son's name. The 'WILL' takes effect after the death of the Testator.
1)deed of family settlement or partition can be executed for division of property by metes and bounds
2) they can then execute gift deed in favour of their sons
3) stamp duty and registration charges have to be paid
Your dad and his brother can either prepare partition deed and register it in each of their heirs name .
They can also prepare gift deeds in each children names respectively. both the ways the stamp duty will be less
after making the deeds of the said transfer, you can apply for the mutation in talati office which is to get the entry of each one's name in the village registry.
since it is ajoint property and both wants to divide to their children a partition deed is ideal. you all can decide what would be in each persons share . the division of the property into metes and bounds is possible in this way
if they do't want to pay stamp duty they can execute a special power of attorney in favour of their sons. it is legal way to transfer property among blood relation. recognised by the supreme court in the case of suraj lamps.
They should execute a registered partition deed. The registration fee can be avoided if a family settlement is executed instead of a partition deed