Cancellation of Sale Deed: How It Works?

Declaration Deed: A Detailed Look at the Deed of Declaration in India

Real Estate Investments generally involve a very high capital and it’s very important to do a thorough verification of the property before investing in it. It’s crucial to know important details like the size of the property, type of the property and other such details. This is where a declaration deed comes in very handy. Let’s take a look at how a Deed of Declaration of a property helps a buyer make the right choice in choosing a better property.

What is a Deed of Declaration?

A deed of Declaration is an official property document giving detailed information about real estate. From the type of land to the total area of construction, exact details are to be provided by the builder in the correct deed of declaration format. It is the responsibility of the builder to execute a detailed Declaration Deed. In some instances, a deed of declaration means a Deed of Trust as well. A Deed of Declaration by the builder should also contain information about the amenities on the property like a swimming pool or gymnasium. The deed declaration will also contain information such as the carpet area of the property, the total number of individual apartments constructed and the value of each apartment. . A Deed of Declaration for property is a legal document used in real estate matters, but it can serve two purposes depending on the context.

Why is the Deed of Declaration Important to Execute?

As discussed, a deed of declaration means an official document giving detailed information about a property. It is mandatory by law for the builder to file and execute a detailed declaration deed of the property. A declaration deed is important because:

• It gives detailed information about the size and type of property for a better investment. 
• Gives a clear indication of the right owner to avoid any dispute in ownership
• Provides in-depth details about the location, amenities and value of the property
• Defines the correct boundaries and area of the property.

These important use cases of a deed of declaration help a buyer make an informed choice and make better decisions. 

Things To Keep in Mind While Making a Declaration Deed

1. Be Certain 

Once executed, the deed will change the legal ownership of the property and it will transfer the legal ownership rights. It is a legal document and can be enforced at the court as an official proof of ownership. 

2. Attention to Detail

Provide the details properly. From the name and details of the witnesses to who pays the stamp duty, everything should be taken into consideration and should be accounted for. 

3. Taken Consent of all Parties

The true owners and registered owners should be present while the deed is executed and signed. If all parties are not present, the deed may be considered fraudulent 

4. Make Proper Registration

To avoid any discrepancies, always get your property registered and pay the necessary taxes. It acts as proof of ownership. 

Deed of Declaration of HUF

According to the Indian succession laws, a Hindu Undivided Family (HUF) consists of members and coparceners. A HUF is treated as a person under the income tax laws of the country. A HUF is formed when all members of a Hindu family are from the same lineage and have a common ancestor. Under the Indian Tax Laws, a HUF has many benefits. Forming and availing of these benefits are also easy. If you are a HUF, let’s take a look at the HUF deed of declaration format for KYC:

Deed of Declaration of HUF: Format

Deed of Declaration Maharashtra: Sample

Download link:

https://www.pkgoyalandassociates.com/forms/2447.pdf

Sales Deed Format Maharastra

What should you include in a Deed Declaration?

The registered deed of declaration is a crucial legal document that outlines the ownership details of a property. Understanding the declaration deed format is crucial for ensuring the document accurately reflects ownership rights in a property. According to official Indian reports, the deed declaration should include the following information: the names of the parties involved, the property’s legal description, the purchase price, the date of purchase, and any restrictions or easements affecting the property. In addition, the deed declaration should also include a clause indicating the type of ownership, such as joint tenancy, tenancy in common, or sole ownership. This clause should also specify the percentage of ownership of each party.

What should you do if the declaration deed is lost?

If a declaration deed is lost, the first step is to obtain a copy of the original document from the registrar’s office. To do this, one must file an application for a certified copy of the deed and pay the required fee. In addition, one must provide proof of ownership, such as the original sale deed or a property tax receipt. If the original deed was registered, a duplicate can be obtained from the registrar’s office by following the same procedure. It is crucial to act quickly in such situations and not delay the process of obtaining a duplicate deed, as it is an essential legal document that establishes ownership of the property.

Get the best legal experts for your unique property hurdles

The deed of declaration is a crucial property document that the builder must correctly execute with all the necessary details. It provides essential information for property evaluation and decision-making. This document offers intricate investment details to property buyers and helps resolve ownership disputes. For expert legal advice, NoBroker offers affordable consultations with top legal experts in the country, ensuring all your questions are answered. Comment below and we will reach out to you.

Frequently Asked Questions

Relinquishment Deeds: Format, Registration 2024

When it comes to transferring property rights to a nominee, a Relinquishment Deed is crucial, especially in cases where the owner passes away without leaving a will. Such a deed is specifically for inherited properties and can only be transferred to legal heirs like siblings, children, or parents. It’s advisable to enlist the expertise of a competent lawyer to ensure the deed’s validity and prevent potential challenges. The registration process takes place at the sub-registrar office, with fees including registration fees and stamp duty varying depending on the state or union territory.

What is the Meaning of a Relinquishment Deed?

A relinquishment deed refers to a legal document in which a property holder releases or transfers his or her legal right of property to someone else. In this, the legal right of property is given up by the owner to another person. Since it is a legal document, the property relinquishment deed needs to be carried out carefully and registered following the governing laws and the compliances. A good property lawyer and consultant are required for the proper execution of a relinquishment deed and compliance. 

To register a relinquishment deed, after drafting the deed, necessary documentation is required. The person giving up the legal rights to his or her property is referred to as the executant, and the person receiving the property is called a nominee. Both the executant and the nominee must be physically present at the registrar’s office to register a relinquishment deed. It is considered valid only when the recipient agrees to accept the rights of ownership of property.

When is a Relinquishment Deed Created? 

A relinquishment deed needs to be created when the owner of a property dies without making a will, and the legal heir of the property decides to give up the legal rights of the property to a co-sharer or a co-owner. It is important to note that a relinquishment deed cannot be registered in the name of any other third person. The person in whose name the deed is being done needs to have a share in the property. Only the inheritor can transfer the property.

Who Can Create a Relinquishment Deed?

A relinquishment deed can be created by a person who has a share in the inherited property. In other words, a co-sharer of the property can relinquish their right to the property in favour of another co-sharer of the property. This includes the person’s children, mother, father, sister, and brother. A property cannot be relinquished in a third person’s name.

Why is it Necessary to Register a Relinquishment Deed?

It is compulsory to register a relinquishment deed to make the transferring of rights of property valid legally. This is governed by Section 17 (1) b of the Registration Act, 1908. This act serves as a tool to validate the transfer of the right of immovable property to the other co-owner. This legalises the process of transfer of property.

Documents Required for Relinquishment Deed

When preparing a relinquishment deed, it’s essential to have the necessary documentation to ensure a smooth and legally binding process. The following documents are typically required:

• Identification Proof: Valid identification proof such as an Aadhar card, passport, or driver’s license of all parties involved in the relinquishment.
• Property Documents: Original property documents, including title deeds and any previous transfer deeds.
• No Objection Certificate (NOC): If applicable, a No Objection Certificate from other legal heirs or stakeholders indicating their consent to the relinquishment.
• Stamp Paper: Non-judicial stamp paper of appropriate value, as per the stamp duty regulations of the respective state or union territory.
• Affidavit: An affidavit affirming the voluntary nature of the relinquishment and stating that there are no pending legal disputes related to the property.
• Passport Size Photographs: Recent passport-size photographs of all parties involved in the relinquishment.
• Witnesses: The presence of two witnesses with their identification proofs for attesting the deed.

What is the Sample Format for the Relinquishment Deed?

The sample deed of relinquishment format is given below:

RELINQUISHMENT DEED

This deed of relinquishment draft is made and executed on this ___day of ________ by

________________, ______(relationship) of Late _________________ and _________________,

____________ of Late ___________________, residents of _________________________________ 

_________________________________________________________, hereinafter called the 

EXECUTANTS/RELEASORS

IN FAVOUR OF

________________, _______ (relationship) of Late ___________________ hereinafter called the 

Releasee.

Whereas Late ________________ was a subscriber under the National Pension System with 

PRAN ________________.

Whereas the said Late ____________ died intestate and without nominating anyone to receive 

the claim for withdrawal of accumulated pension wealth, leaving behind the following legal 

heirs:-

Sr no. / Name /Age/ Relationship / Address

1.

2.

3.

NOW THIS DEED WITNESSETH AS UNDER:

The Executants/Releasers out of natural love and affection and without any monetary 

consideration, hereby wish to release and relinquish their respective shares in the claim under 

National Pension System, in favour of _________________, _____ (relationship) of Late 

________________, and hereby affirm and declare that they and their legal heirs shall have no 

right, claim or interest in the said claim for withdrawal of accumulated pension wealth of Late 

________________ and same shall vest absolutely in the said _______________, 

__________(relationship) of Late ________________, the Releasee.

IN WITNESS WHEREOF the Executants/Releasers and the Releasee have signed this deed of

relinquishment on this day, month, and year first mentioned above in the presence of the 

following witnesses; –

(A- _________________) (B-__________________) (C-__________________)

(Executants/Releasers)

Witnesses:

Name/ Address/ Signature

1. Witness 1
2. Witness 2

How to Register a Relinquishment Deed?

First, a draft is made of the relinquishment deed on a stamp paper of Rs. 100. Be careful not to make any errors regarding details and spelling. Try to keep the language simple so that the deed is easily understood by the concerned parties. The deed will be registered in the sub-registrar office of the area in which the property is situated. All the concerned people need to be physically present to register the deed. Along with this, they must have all documentation prepared in advance before paying the registration fee. After the verification of the documents by the officials, the relinquishment deed can be collected in about a week. 

What is the Difference Between a Relinquishment Deed and a Gift Deed?

A relinquishment deed is done when an inherited property is being relinquished. In this case, the legal rights to the property are being relinquished, i.e., given up. Also, only a co-owner of the property can be the nominee. In some cases, compensation is also required. Whereas, on the other hand, in the case of a gift deed, the property doesn’t have to be an inherited property. As the name suggests, the property is being gifted from one person to another person. Any person can be the receiver of a gift deed. A gift deed doesn’t require any compensation. Read more about gift deeds from here.

Can a Relinquishment Deed be Challenged or Revoked?

Relinquishment deeds are not usually revoked. However, in some exceptional cases, the co-owner can revoke it. The cases include fraud by duping the co-owner use of force to make the agreement or misinterpretation of the documents by the person. If the other co-owner doesn’t agree to the cancellation of the deed, then the matter is resolved in civil court. It can be cancelled only within the first three years after the registration of the relinquishment deed.

It is essential to register a relinquishment deed because an unregistered deed is not considered valid. When it comes to legal matters and paperwork, you have to be especially careful. So, to be on the safe side, always try to hire a professional. When forming a relinquishment deed, an experienced lawyer and consultant should be hired to avoid any errors and mistakes in the registration process. You can comfortably avail of these services from NoBroker by clicking below. NoBroker Legal Services provides an array of services related to property and paperwork. Apart from this, you can get services like home loans, home services like cleaning and painting, interior design and more.

Frequently Asked Questions

Sale Deed: Your Guide to Property Ownership

Confused what is sale deed certificate?A sale deed is a vital legal document confirming property ownership transfer from seller to buyer, establishing proof of ownership. It’s executed after agreeing on sale terms and conditions. This document transfers property rights and must be checked for encumbrances.

What is a Sale Deed in India?

A contract that executes the sale and transfer of ownership of immovable property from seller to purchaser in exchange for a consideration. When a sale is carried out with an objective of laid down guidelines, which are to be followed while processing the sale, it is a document created to execute the final purchase. 

The meaning of a sale deed is a legal and main document, that acts as evidence, that is executed at the time of sale and transfer. When you buy or sell property, the transaction should be carried out and duly signed between and by both the parties i.e., Vendor and Purchaser. And it should be in the presence of at least two Witnesses. When executed, it should be registered under the Registration Act, 1908 within four months by the Sub Registrar. Thus, only with properly executed transactions, a sale can be completed.  

The document is drafted by a legal draftsman adhering to all principal terms and conditions mentioned under the Transfer of Property Act to acquire a perfect title to the property that is being purchased as per the value prescribed by the stamp duty. Every state is accustomed to a predetermined value and is paid by the Buyer.

The seller transfers the ownership to the buyer through a sale deed. The buyer exercises the following rights; when rights are transferred: –

• Right to Sell
• Right to Use
• Right to Lease or Mortgage

Advantages of a Sale Deed

It is an important instrument that allows you to carry out the sale of an immovable asset, that transfers rights from one person to another is a lifetime. One cannot claim rights to any property without a sale deed.

The benefits of the Sale Deed document are as follows:

• It is a legal document that is enforceable by law.
• It allows Sale transactions to be carried out in a stable and comfortable manner.
• It protects the rights of both parties involved in the contract.
• It mentions the rights and duties of the Purchaser and Vendor.
• It clearly defines and describes the property.
• A well-drafted deed can avoid ambiguity and minimise risks.
• The whole process of the sale is now stamped and registered.

What Should a Sale Deed Include?

The final deed should include these details:

• Parties Descriptions: Name particulars, complete address, contact number, age and occupation of both, the buyers and sellers.
• Property Description: Identity number, exact location details, property dimensions, and construction details, if any.
• Sale Agreement: An agreement is carried out mutually under the terms so that it won’t affect the rights of either party. And is executed before the sale deed.
• Clause: This states a declaration from the seller that the property being transferred is free from every encumbrance, litigation, and charge. The seller indemnifies the buyer of any pending charges.
• Pending Loan: The seller should settle a pending loan, if any taken with the concerned property as a mortgage, before proceeding with the sale.  
• Right to Examine: The buyer can examine the documents related to the property before carrying out registration.
• Consideration: The price at which the transfer deal is finalized. 
• Advance Payment and Mode of Payment: Should also mention details about the advance amount paid, if any and shall include receipt of sale transactions too. The price details should be mentioned in words and figures. The parties should decide the payment mode and other details.  
• Passing of Title: The property title passes to the buyer. Once the title has been transferred, all rights are vested with the buyer.  
• Possession by the Buyer: The Conveyance Deed should clearly mention the date of delivery of property to the buyer.

The Process of Getting a Sale Deed

A Sale Deed is to be registered compulsorily as per the Registration Act,1908. To get a sale deed, the following process is involved: – 

• Process 1 – A lawyer should be present to carry out a transaction and a detailed analysis 
• Process 2 – Proper information to be mentioned wherever necessary 
• Process 3 – After all the information has been collected, the Lawyer will start working on your document-related matters. 
• Process 4 – within a few days, you would get a draft from your lawyer 
• Process 5 – evaluate and examine all the details provided. If any changes are to be done, then do inform the alterations to your lawyer.

Suggested Read: Sales Deed Vs. Sale Agreement, What Do You Need?

Sale Agreement Format

Land Sale Deed Format

THIS DEED OF SALE is made at ____ on this the______day of_____2022.

BY AND BETWEEN _____, etc., (hereinafter called “the seller”) which expression shall unless repugnant to the context shall include its successors, legal representatives, assigns of the ONE PART 

AND ________, etc., (hereinafter called “the buyer”) which expression shall unless repugnant to the context shall include its successors, legal representatives, assigns of the OTHER PART. 

Now Therefore It Is Hereby Agreed by and Between the Parties HereTo as Follows: 

1. In consideration of the sum of Rs___________paid by the buyer to the seller on the_________day of_________(the receipt of which the seller hereby acknowledges) the seller as owner hereby transfers to the buyer by way of sale ALL that pucca house standing on the land measuring ___ meters by ____ meters fully described in the schedule hereto annexed and thereon shown with its boundaries coloured red (hereinafter referred to as “Premises”) TO HOLD the same to the buyer as absolute owner.

2. The seller hereby covenants with the buyer as follows: – 

(a) The said Premises shall be quietly entered into and upon and held and enjoyed and the rents and profits received therefrom by the buyer without any interruption or disturbance by the seller or any person claiming through or under him and without any lawful disturbance or interruption by any other person whomsoever; 

(b) The seller will at the cost of the person requiring the same, execute and do every such assurance or thing necessary for further more perfectly assuring the said premises to the buyer, as may reasonably be required; 

(c) The interest hereby transferred subsists and the seller has the power to sell the same; 

(d) The property hereby sold is free from all encumbrances, charges, mortgages, liens, prior agreement to sell, court proceedings, gifts, of any nature whatsoever.

(e) That the construction existing on the said Premises is in accordance with the sanctioned plan. 

3. If any of the foregoing including the representations and warranties are found to be false in any manner and/or if the buyer is deprived of the said Premises at any time, in future after the execution of this Sale Deed in full or in part thereof, owing to the above reason or reasons whatsoever in respect of the said Premises, the Seller hereby undertakes that he will entirely remain liable and responsible to indemnify the buyer for the same in all manners, including but not limited by all his moveable and immoveable properties and all other assets.  

4. That the Seller has delivered the peaceful physical vacant possession of the said Premises under sale along with all its rights of ownership and also delivered all the previous original documents of the said Premises to the buyer at the time of execution and registration of this Sale Deed. 

5. That the buyer can get the said Premises under sale mutated in its own name and/or any other concerned authority by presenting this Sale Deed or its true copy. 

6. That from the date of execution of this Sale Deed the buyer becomes the sole and absolute owner of the said Premises under sale and shall be at full liberty to use, enjoy and utilize the said Premises under sale and also have right, power, absolute authority and be fully competent to sell or dispose of the same to anyone in any manner as he may like. 

7. That after the execution of this Sale Deed neither the buyer nor his legal heirs, may raise any objection or create any charge or demand any share in the said Premises under sale here-after. 

In Witness Where of the parties hereto have signed this Deed of Sale on the date mentioned against their respective signatures. 

Witness Vendor

Witness Purchaser

The schedule herein referred to 

(Description of the property)

What is the Sale Deed of Flat Format?

This DEED OF SALE is made and executed at ______ on this _______ day of ______________, Two Thousand _______

BETWEEN 

………., PAN NUMBER……, EPIC/Passport /OCI/CIO/PIO No………., Aadhar No………..  son / wife / daughter of    ……….  residing at …………by faith……………, by Occupation …………. , by Nationality………………., 

Herein after referred to and called as the “OWNER(S)/ VENDOR(S)”

AND

…………..…PAN-………, having place of business at ………, represented by its Partner(s) ……………….son / wife / daughter of ……….,  residing at ……….  by faith

….., by Occupation ….., by Nationality  ….. ,  hereinafter  referred to and called as the ‘DEVELOPER ( s) ’

    AND

………. PAN NUMBER, EPIC/Passport /OCI/CIO/PIO No………., Aadhar No………..   ………..  son / wife  / daughter of    ……….  residing at ……………..by faith…………… , by Occupation …………. , by Nationality………………., 

Herein after referred to and called as the “CONFIRMING PARTY (IES) ”

AND

………. PAN No……., EPIC/Passport /OCI/CIO/PIO No………., Aadhar No………..    son/ wife/ daughter of    ………. residing at …………  by faith………, by Occupation …………., by Nationality………………., hereinafter referred to and called as the “PURCHASER (S)

(The Vendors / Purchaser(s) is/are being represented by his/her/their Constituted Attorney (s)…..  PAN No……, EPIC/Passport /OCI/CIO/PIO No………., Aadhar No……..   son/wife/daughter of ……, residing at ………., by faith ………., by Occupation ………., by Nationality ………., by Constituted General/Special Power of Attorney dated ………., /by Authenticated General/Special Power of Attorney being No …dated ………. of the office of the……..  ) 

 [for and on his/her behalf the representative/nominee/guardian/ward (as the case may be) (with all additions), Order or Permission No. ………………..  Date …………………. (as the case may be)] / [Name of the Government / Organisation / Institution / Company / Firm / Trust / Society (as the case may be) with the place of its headquarters and for and on its behalf the / its …………………………. (Designation of the post held), …………………………………… (Name of the person holding the post 

or having the designation with all additions)]

The expression of the Vendor & Purchaser shall mean and include the parties itself, their respective legal heirs, executors, successors, administrators, legal representatives, and assigns / nominees.

Whereas the Vendor for his bonafide needs and legal requirements, in his sound and disposing mind without any pressure, force, compulsion or coercion has agreed to sell and transfer the said property unto the Purchaser for a consideration value of Rs …………

For which the Purchaser after scrutinising the status of the property and also being satisfied regarding the title of the Vendor has agreed to purchase the same against the said consideration.

NOW THIS DEED WITNESSETH AS UNDER: –

1. That in consideration of Rs ………….… the entire amount has been received by the Vendor from the Purchaser prior to the execution of this sale deed, the receipt of which is hereby admitted and acknowledged by the Vendor.
2. That the Vendor hereby sells, conveys, and assigns the property absolutely and forever with all rights, title and interest of the same, unto the Purchaser who shall hereafter be the absolute owner of the same and enjoy all rights of ownership etc.
3. That the actual physical possession of the said property has been handed over by the Vendor to the Purchaser who is in possession of the same at the time of registration of this sale deed. 
4. That all taxes, charges, dues, demands, arrears, electricity charges, water charges, outstanding bills, house tax, development charges etc. if any, in respect of the said property for the period prior to the date of execution of this sale deed shall be paid and borne by the Vendor and thereafter the same shall be paid and borne by the Purchaser. 
5. That the Vendor hereby agrees and assures the Purchaser to help and assist him in getting the property transferred/mutated in the relevant department and any other concerned department and/or the Purchaser shall have full right to get the property transferred/ mutated in his/her own name from the concerned department on the basis of this Sale Deed even in the absence of the Vendor. 
6.  That all right and easements attached with the said property have also been conveyed and transferred with the said property, unto the Purchaser. 
7. That the Vendor has assured and delivered to the Purchaser that the said property under sale is free from all sorts of encumbrances such as Sale, Mortgage, Gift, Transfer, decree, litigation, lease, acquisition/ notification etc. and there is no defect in the title of the Vendor and if it is proved otherwise at any time and the Purchaser suffers any loss, then the Vendor shall be fully liable and responsible for the same and the Purchaser shall be entitled to recover all his/her losses from the
   Vendor.
8. That the Purchaser shall have full right to apply and get the Water, Electric and sewerage connection regarding the said property from the concerned authorities and also to get the existing name changed in his/her own name from the department concerned without any written consent of the Vendor.
9. That the Vendor has delivered the previous title documents relating to the said property.
10. That the Vendor hereby declares and assures to the Purchaser that the
    said property has not been acquired by the Govt. and there is no
    injunction or attachment order of any Court or Department.
11.  That the market value of the property is Rs……………………. All facts
    relating to its market value, consideration, and charge ability to stamp
    duty and transfer duty have been fully given in the sale deed and
    mentioned Schedule B of this sale deed.
12.  Any other points to specify

THE SCHEDULE “A”

              (DESCRIPTION OF THE ENTIRE PROPERTY)

ALL THAT piece and parcel of ………………… land measuring about ………… Cottahs ……………. Chittacks …………. sq. ft. more or less land, along with the Complex named ……………having   G + ……………Building lying and situated at Mouza-…………., Pargana–………………., J.L. No…………., Re Su No.-…………………  Touzi No…………comprising in R.S. Dag No.-……………………, under R.S. Khatian No.-………………, corresponding to LR Plot No………….   and LR Khatian No…………, having Municipal Holding No……………………, Road Name ………………, being Premises No.-……………., PIN-………………, under Ward No.-……………… within the limits of ………………. Municipality / Municipal Corporation, within the office of …………………… P.S.-………………  District-…………, and butted and bounded by: –

ON THE NORTH BY: –

ON THE SOUTH BY: – 

ON THE EAST BY: – 

ON THE WEST BY: –

THE SCHEDULE” B” ABOVE REFERRED TO –

[Description of the Flat/Unit]

ALL THAT piece and parcel of a demarcated self-contained residential/semi-commercial /office / commercial Flat/ covered garage / open garage being No.…………. on the ………… Floor, in Block-…………., having a measurement of ……………… sq. ft. Super built-up area more or less comprising of ……………………………, with ……. Flooring, from Developer’s Allocation within the G Plus………. Building, of age years ……., the property being tenanted / not tenanted, the property being litigated with pending Title suit No ……………for year ……. lying in The Court of ………/ not litigated, within the Complex named ………………. together with an undivided proportionate share of underneath land and other common amenities and facilities including easement and quasi-easement rights along with restrictions and reservations as stated aforesaid as attached with the Multi-storied Building within the said Complex at Municipal Holding No.-…………., Road, …………………. Being Premises No.- …………., Road………, Pin ………, under Ward No.-………., within the …………… Municipality / Municipal Corporation, under the office of ………., under P.S.- ………………., District-…………… fully described “A” SCHEDULE herein above written.

Annexed Plan marked with Red Border will be treated as part and parcel of this Deed.   

Upload Sketch Map

– THE SCHEDULE “C” ABOVE REFERRED TO –

[The Common portions]

1. Entrance and existing internal roads, and footpath.

2. Common durwans / caretaker room, Caretaker Room, Security Camera Room, (if any).

3. Boundary walls and main gates.

4. Drainage and sewerage lines and other installations for the same (except only those as are installed within the exclusive are of any unit and/or exclusively for its use).

5. Staircases lobbies on all the floors and vacant area of the ultimate roof of the proposed building (Roof right will not be available for Garage, Shop and Godown owners, but rights attached to the Ground Floor will be available only).

6. Tube well and water supply system, water pumps, water pump rooms, overhead tank, septic tank together with all common plumbing installation for carriage of water (save only those as are

exclusively within for the use of any unit.), community Hall and two-wheeler parking space

7. Lighting fixtures and fittings in common area from common use.

In Witness Whereof this sale and purchase agreement is executed at——- on the day, month and year above written.

Vendor

Vendee

Witnesses:

1. 

2.

What is the Sale Deed of Property Format?

Sale and Purchase Agreement

This sale and purchase agreement is executed at —– on this —— day by Mr. / Ms. ————— son/ daughter of—————————- aged about ———————— resident of —————————————–, hereinafter called the Vendor,

IN FAVOUR OF
Mr. / Ms. ———————————- son/ daughter of—————————- aged about ———————— resident of —————————————–, hereinafter called the Vendee.

The expression Vendor and Vendee shall mean and include their heirs, successors, executors, administrators and assigns of the respective parties.

Whereas the Vendor is the Bonafide owner of the property described below with all rights and title and has the absolute right to sale, alienate the aforesaid property to the Vendee.

Description of the property:

i) Plot No. —- and address

ii) Area

iii) Floors

iv) Location

v) Facilities and amenities

Whereas the Vendor has agreed to sale the aforesaid property to the vendee for her Bonafide needs and requirements with fittings and fixtures and the Vendee has agreed to purchase the same for a sum of Rs. ————————.

NOW THIS SALE AND PURCHASE AGREEMENT WITNESSETH AS UNDER
That the consideration amount of mentioned above stands already paid to the vendor as full and final settlement as stated above prior to execution of this sale and purchase agreement, vendor does hereby acknowledge the receipt of the same and the vendor do hereby sell, conveyed, transfer and assigns all his rights, title, and interest of the above said property under sale unto the vendee.

1. That the vendor hereby assures and declared that he is the conveyance deed holder and is the sole, absolute, exclusive and rightful owner of the aforesaid property under sale along with freehold rights of the land underneath and he is fully competent and has full rights and power to sale and transfer the same.

2. The vendor hereby absolutely assigns, conveys and transfers to the Vendee all her rights of ownership, titles and all interests in the above-mentioned property under sale hereby conveyed under this sale and purchase agreement.

3. The vacant and peaceful possession of the above-mentioned property under sale has already been given to the Vendee by the Vendor, who has occupied the same.

4. The Vendee shall hereinafter hold use, enjoy as he/she likes and to sell, mortgage, lien, let-out or make additions/alterations or renovations in the same as her own property without any hindrance, claim or demand whatsoever from the vendor.

5. That the Vendor hereby assures the vendee and declares that he is the sole, absolute, exclusive and rightful owner of the above-mentioned property under sale, and is fully competent and has full power, absolute authority and unrestricted rights to sell and transfer the same, and the same is free from all sorts of encumbrances, burden, sale, mortgage, gift, lien, decree, charges, court injunction orders, stay orders, liability, transfer, attachment, litigation, legal flaws, dispute, notices, surety, security, notifications, acquisition etc. and there is no legal defect in the title of the Vendor. If it is proved otherwise, the Vendor and the property both moveable and immoveable shall be liable to indemnify the vendee in full or part to the extent of loss sustained by the vendee at the prevalent market value of the said property at that time with all cost, expenses and damages, etc. and the vendee shall have full rights to recover the same, along with the cost and expenses of additions, alterations, renovations, modifications, etc. through the court of law.

6. That the Vendee can get the above-mentioned property under sale mutated and transferred in his/ her own name on the basis of this sale and purchase agreement with the concerned government department.

7. That all dues such as house tax, electric and water bills, etc. outstanding, if any, in respect of the above-mentioned property under sale, shall be paid and borne by the Vendor up to the date of execution/registration of this sale and purchase agreement and later on by the Vendee.

8. The Vendee has spent all costs of stamp papers and registration fees, etc. for the present sale and purchase agreement.

9. The Vendor has handed over all the original documents establishing the chain of title of the said property.

10. That the Vendee is fully empowered to transfer or get the fresh electric and water connections in respect of the above-mentioned property under sale in his/her own name after the execution/registration of this sale deed from the respective departments at his/her own cost and expenses.

12. The Vendee shall maintain the above-mentioned property under sale at her own cost and expenses.

14. That the Vendor, her heirs, successors, executors, administrators, legal representatives, and assignees have been left with no rights, titles or interests in the said property and the Vendee has become its absolute owner.

In Witness Whereof this sale and purchase agreement is executed at——- on the day, month and year above written.

Vendor

Vendee

Witnesses:

1. 

2.

Sale Deed Format for Resale Flat

Flats for resale follow the same sale deed formats as mentioned. All that is required is the recent history of possession of the flat.

What is Sale Deed Number? 

After registration is completed, stamp duty and registration charges are paid. The payment slip mentions the number and on each page of the sale deed, there is a stamp by a government official. On the top right corner of every page, you can find your sale deed number.

How To Find the Sale Deed Number?

A property sale deed is necessary since it is a legal document drawn on non-judicial stamp paper according to the state’s stamp duty value. This document serves as proof of a property sale or purchase between two parties in front of two adult witnesses. A description of the property is included in a sale deed.

The sale deed of land also includes-

• Details of the buyer and seller
• The size of the property, the building features, the specific address, and the surrounding area are all important factors to consider.
• The whole amount of the sale, including the amount paid in advance and the method of payment.
• Delivery date – Possession of property
• The clause of indemnity

The sale deed number is generally written in the following format:

• Document Number / Year / Sub Registrar Office initials
• For instance: 535/2021/HVL1
• Here, HVL1 is HAVELI sub-registrar number 1.

In India, a property transaction without an original sale deed sample is illegal, so make sure you have one recorded and registered when you buy the property. If you want to check the sale deed number, take a close look at your paperwork, and use the previous example to locate it.

Registration of a Sale Deed

The property papers are to be kept with the Sub-Registrar to confirm the deal is being closed. The registration includes the following: – 

• Value of the property
• Stamp duty assessed as per the market rate and actual price is to be considered
• Value of non-judicial stamp paper
• Deed to be executed on stamp paper
• Both the parties should execute the document in the presence of two witnesses
• Finally, it should be registered with the Sub-Registrar

What Are the Various Documents Required for Property Registration?

The Sale Deed documents required for registration are: – 

• Title Deed Draft
• Extract
• Sharing Agreement between owner and builder, if any
• Power of Attorney, if any
• Blueprint by the officials
• Allotment Letter from the Housing Board
• Original Property Papers with Bank, if any loan is taken
• Sale Agreement
• A copy of existing agreements, if any resale has taken place
• No objection Certificate, if any resale
• Property Tax Receipts
• Encumbrance Certificate
• Completion Certificate
• ID proof of both parties including witnesses
• Passport-size photographs
• Stamp Duty Receipt
• Possession Letter
• Occupancy Certificate

What does a Sale Deed imply?

According to the Registration Act of 1908, a sale deed is registered. To sign the sale deed and complete the transaction, both parties must be physically present in the sub-office registrars with two witnesses and all necessary paperwork.

When the sale deed is signed, it is assumed that the seller has given the buyer an irrevocable title to the property. It also signifies that they have abided by the terms and received full payment of the agreed-upon compensation. The legal ownership of the property is with the buyer.

How to Get a Certified Copy of a Lost Sale Deed?

Losing an important document is not a good thing, but mistakes happen, natural disasters happen, and people move places and misplace vital documents all the time. The importance of a sale deed as a vital document has already been established, but what is the process to get a certified sale deed copy? Simply follow the steps below:

• File a complaint to the local police as an FIR or first information report
• Only the owner can file the FIR by registering the mobile number for the status to be tracked online later
• Save a copy of the FIR for future prospective buyers or banks in case it is necessary
• Visit the local sub-registrar office or SRO and fill and submit an application to get a certified sale deed copy, and you will also be asked to publish a national and regional ad in the newspaper regarding the loss of property documents
• Keep a copy of both the complaint and clipping and wait for 2 to 4 weeks to see if your property papers turn up, or else, get an affidavit prepared on stamp paper stating the details of the lost deed, sign and notarise from a public notary
• Attach the FIR document along with the ad and FIR to the SRO with a prescribed fee.
• After verifying the SRO will legally issue a certified copy of the sale deed, as a substitute for the original

When Things Go Sour: How to Cancel a Sale Deed in India

A sale deed is a legal document that serves as evidence of the transfer of ownership of a property from the seller to the buyer. However, sometimes the sale deed needs to be cancelled due to various reasons. In this section, we will explore what the cancellation of a sale deed means and what are the steps involved.

Reasons For Cancellation Of Sale Deed:

• Breach of contract by either party
• Non-payment of the agreed-upon sale amount
• Dispute over the ownership of the property
• Fraudulent activity on the part of the seller

Steps Involved In The Cancellation Of A Sale Deed:

Draft a cancellation deed: A cancellation deed is a legal document that cancels the original sale deed. It should contain all the details of the original sale deed, the reason for cancellation, and the consent of both parties.

Execution of the cancellation deed: The cancellation deed should be executed on non-judicial stamp paper of appropriate value and registered at the Sub-Registrar’s office.

Payment of stamp duty and registration fees: The stamp duty and registration fees are based on the market value of the property and vary from state to state. NoBroker’s legal services can help you determine the applicable stamp duty and registration fees.

Handing over the possession of the property: Once the cancellation deed is executed and registered, the possession of the property should be handed over to the seller.

Things To Keep in Mind Before Executing a Sale Deed

• Do not use a copy-paste format for the deed. Get assistance as it is much harder to get the papers corrected.
• Correct information about the buyer and seller
• Connect it to the Agreement Sale
• A proper description of the property
• Absolute clear ownership and titles
• Clear mode of transaction and history of payments + future payment plans.
• Pass ownership title to the buyer
• Indemnification
• Delivery of old documents
• Witnesses

How Is a Sale Deed Different from a Sale Agreement?

The formalisation of property sales takes place in stages. The agreement to sell, agreement to sale, agreement for sale, or sale agreement is one of the first agreements that is signed to give legal status to an agreement between a buyer and a seller. The sale deed is the next document that is prepared to complete the transfer of the property title to the new owner. The deed of sale, or conveyance deed, is another name for this document.

Sale Deed	Sale Agreement
A sale deed is a legal document that documents the transfer of property ownership.	A sale agreement guarantees the transfer of property ownership in the future.
A sale deed means – The property’s rights and interests are transferred to the new owner through a sale document.	A sale agreement grants the buyer the right to purchase the property in question if specific requirements are met.
The sale deed contains information on both parties (buyer and seller), including their ages, addresses, and other pertinent information.	The terms and conditions under which the property will be transferred are specified in the sale agreement.
To complete a sale deed, the buyer must pay stamp duty and a registration fee.	The sale agreement comes before the sale deed, which is signed and executed on non-judicial stamp paper by both the seller and the buyer.

Is Sale Deed a Valid Document?

A Sale Deed is a valid document that mentions details about the property and the transaction that took place. A written agreement that involves the transfer of ownership.  It is also known as an absolute sale deed in places, as an absolute sale deed meaning in English denotes the complete authority and ownership of the property as well as the details that led to the sale and change of ownership taking place.

This comprehensive information provides insights into the significance of the sale deed. Additionally, NoBroker offers extensive support for property-related documentation, including property title verification, sale deed, agreement drafting, and registration. Our services are facilitated by expert lawyers, ensuring the creation of clear and comprehensive sale deeds and agreements. NoBroker also provides dedicated managerial assistance for prompt approvals, effectively eliminating the need for lengthy queues and simplifying the process. We encourage you to take advantage of our services by clicking the link below, offering competitive pricing and convenient delivery.

Frequently Asked Questions

Will Deed: Meaning, Types, Format and More

A will deed gives you authority over your possessions after death. It lets you clearly and precisely choose who gets your property, goods, and stuff. We will discuss Will Deed in this blog to help you protect your family from strife and uncertainty. Read on to know what is will deed and how to create one! 

What is a Will Deed?

A will deed is a legal document or terminology which is coined by joining two terms, will and deed. Let’s see what these terms mean:

• Will: A legal document that specifies how a person’s assets and property will be distributed after their death. It outlines who will inherit specific belongings and appoints an executor to manage the estate. Wills are not enforceable until the person who wrote them (the testator) dies.
• Deed: A legal document that transfers ownership of a specific asset, such as real estate, from one person (the grantor) to another (the grantee). Deeds take effect immediately upon being signed and registered.

What is the Meaning of a Will Deed?

The grantor and grantee transfer real estate (land and everything permanently related) in a property deed. Proof of property ownership is needed.

Here are some property deed basics to help you understand the will deed meaning:

What it contains:

• Names of grantor and grantee: Identifies the party transferring ownership and the party receiving it.
• Property Description: Provides a detailed description of the property, including address, legal boundaries, acreage, and any permanent fixtures.
• Transfer type: Specifies the type of transfer, such as purchase, gift, or inheritance.
• Covenants may include restrictions or assurances regarding the property’s use or development.
• Signatures and date: Requires signatures of both parties and the date of transfer to be legally valid.

Purpose of Will Deed

Creating a will help you keep your loved ones safe and provide legal protection against claims. Some of the benefits include: 

• Prevent disputes and legal battles: A clear will deed minimises the risk of misunderstandings and disagreements among heirs, ensuring a smooth and peaceful transition of your estate.
• Express your specific wishes: You can designate beneficiaries, allocate assets, and even name guardians for minor children or dependants.
• Appoint trusted individuals: You can choose an executor, a responsible person tasked with managing your estate and fulfilling the terms of your will.
• Offer peace of mind: Knowing your wishes are documented and legally binding provides you and your loved ones with security and comfort.

Types of Will Deed

Will deeds are of different types and created for different purposes. Here are different types of Will Deed:

• Warranty deed: Offers the strongest guarantee of title from the grantor, protecting the grantee from any hidden claims or defects.
• Quitclaim deed: Transfers ownership without guarantees or warranties, often used when gifting property or settling minor discrepancies.
• Special warranty deed: Offers some assurance against the grantor’s actions after the transfer but not against prior claims or defects.

What is Will in Property Documentation?

The term ‘will deed’ is not the most common terminology used in legal contexts. While it might be used colloquially in some regions, ‘will’ is a more precise term.

So, what is will in property? It’s a legal document that states how to divide your assets and property after death. You may pick who inherits your possessions, including:

• Real estate: houses, apartments, land, etc.
• Personal property: cars, furniture, jewellery, collectables, etc.
• Financial assets: cash, bank accounts, investments, etc.
• Digital assets: online accounts, cryptocurrency, etc.

Having a will helps to:

• Avoid intestacy: If you die without a will, your assets will be distributed according to the laws of your state, which may not be what you intended.
• Minimise conflict: A clear will can help to prevent disputes and arguments among your heirs about who gets what.
• Provide for loved ones: You can use your will to leave specific gifts to certain people, such as a family heirloom to a grandchild or a donation to a favourite charity.
• Appoint a guardian: If you have minor children, you can use your will to appoint a guardian to care for them after your death.

Wills are only effective after death and may be modified or repealed.

Additional will considerations:

• Formalities: Legal advice is advised, but most states don’t need lawyer-written wills. You must sign and have two witnesses witness the will.
• Updates: It’s a good idea to review and update your will periodically, especially if you experience significant life changes, such as getting married, having children, or going through a divorce.

Will Draft Format

Here is a sample will deed format:

[Your Full Name]

I, [Your Full Name], residing at [Your Address], being of sound mind and disposing memory, do hereby declare this to be my last will and testament, revoking all prior wills and codicils made by me.

Article 1: Executor

I appoint [Executor’s Full Name], residing at [Executor’s Address], to be the executor of this will. If [Executor’s Full Name] is unable or unwilling to serve, I appoint [Alternate Executor’s Full Name], residing at [Alternate Executor’s Address], as the alternate executor.

Article 2: Debts and Expenses

I direct my executor to pay all of my debts, funeral expenses, and the expenses of administering my estate as soon as practicable after my death.

Article 3: Distribution of Assets

I give, devise, and bequeath my property and assets as follows:

• To [Beneficiary 1’s Full Name], I bequeath [Description of Property or Assets].
• To [Beneficiary 2’s Full Name], I bequeath [Description of Property or Assets].
• …

Article 4: Guardianship (if applicable)

If [Minor Child(ren) Full Name(s)] is/are still minors at the time of my death, I appoint [Guardian’s Full Name] as their guardian. If [Guardian’s Full Name] is unable or unwilling to serve, I appoint [Alternate Guardian’s Full Name] as the alternate guardian.

Article 5: Residuary Clause

I give, devise, and bequeath any remaining property or assets not otherwise mentioned in this will to [Residuary Beneficiary’s Full Name].

Article 6: Miscellaneous Provisions

[Include any additional provisions or specific instructions, such as charitable bequests, specific funeral wishes, etc.]

IN WITNESS WHEREOF, I have executed and signed this will as of [Date].

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[Your Full Name]
(Testator)

[City, State]

[Signature]

This is a basic template, and the details will need to be customised based on your individual circumstances and the laws of your jurisdiction. Again, consulting with a legal professional is essential to ensure that your will is legally valid and accurately reflects your wishes.

What is a Registered Will Deed?

A registered will is a will document that has been officially recorded with the appropriate government authority, usually the local registrar or the relevant legal entity responsible for maintaining such records. Registering a will provides additional authentication and evidentiary support, making it more secure and less prone to challenges.

Step by Step Will Deed Registration Process

Here’s a basic outline of the process to create a registered will:

Drafting the Will

• Start by creating a detailed and clear document outlining your wishes regarding the distribution of your assets, appointment of an executor, guardianship of minors (if applicable), and any other specific instructions.
• Include your personal details, details of beneficiaries, and the specifics of the bequests or distributions.

Visit a Lawyer

• Consult with a legal professional to ensure that your will complies with the laws of your jurisdiction and includes all necessary elements.

Visit the Sub-Registrar’s Office

• Take the drafted will to the local sub-registrar’s office or the appropriate government authority responsible for will registration.
• Complete the necessary forms provided by the office.

Witnesses and Notarisation

• Usually, two or more witnesses are required to attest to the signing of the will. The witnesses should not be beneficiaries or related parties.
• Some jurisdictions may require notarisation of the will.

Submission and Registration

• Submit the signed and witnessed will to the registrar along with any required fees.
• The registrar will review the document and, if everything is in order, officially record and register the will.

Obtain the Registered Will

• Once registered, the registrar will provide a certified copy of the registered will. It’s essential to keep this copy in a safe and accessible place.

Inform Relevant Parties

• Inform your executor, family members, or relevant parties about the existence and location of the registered will.

Will Deed Registration Charges

Here are the various court charges associated with a will deed in India:

Will registration fee in India

The price of creating a will in India ranges from ₹10,000 to ₹15,000, and this price does not include the cost of will preparation. Other than the little fees for scanning and photocopies, there are no government fees associated with registering a will.

Court fee for will registration in India

In order to grant probate, the court may demand a portion of the estate as payment. The ad valorem system, which determines the fees, indicates that a certain portion of the estate’s value must be probated. Probate proceedings are required in places like Kolkata, Mumbai, and Chennai.  For instance, in Maharashtra, if an asset is valued at less than `50,000, the court fee is ~25; if it is valued at between `50,000 and `2 lakh, it is ~4%; and if it exceeds `2 lakh, it is 7.5%. An upper limit of ~75,000 is set.

Supreme Court Judgement on Will Deed

As per the Act, a “will” refers to the formal statement made by the testator about the distribution of their property in accordance with their intents and wishes, which would be implemented upon their passing. Moreover, a codicil is a document added to, amended, or explained in connection with a will; it is considered to be a part of the will.

Will vs Gift Deed: The Difference

Here’s a table outlining the key differences between a Will and a Gift Deed:

Feature	Will	Gift Deed
Definition	A legal document that outlines the testator’s wishes regarding asset distribution after death.	A legal document transferring ownership of property from one person (donor) to another (donee) during the donor’s lifetime.
Effective Period	Becomes effective only upon the death of the testator.	Takes effect immediately upon execution and registration of the deed.
Revocability	Generally revocable during the testator’s lifetime, allowing changes to be made.	Generally irrevocable once the gift deed is executed, although there may be exceptions and conditions.
Transfer of Ownership	Ownership of assets is transferred to beneficiaries after the testator’s death.	Ownership of property is transferred to the donee immediately.
Execution Requirements	Requires the testator to be of sound mind and comply with specific legal formalities. Witnesses are usually required.	Requires the donor’s intention to gift, acceptance by the donee, and compliance with legal formalities, including registration. Witnesses may be required.
Purpose	Primarily used to distribute assets and appoint guardians after death.	Used for transferring property ownership as a gift during the donor’s lifetime.
Flexibility	Can be updated or amended by the testator as circumstances change.	Generally not easily amendable once executed. A new gift deed may be required for changes.
Legal Formalities	Specific legal formalities vary by jurisdiction but often involve witnessing and notarization.	Involves specific legal formalities, including registration with the appropriate authorities.
Tax Implications	May be subject to inheritance or estate taxes upon the testator’s death.	Gift tax may apply, and the donor may be responsible for paying any applicable taxes.
Survivor’s Rights	Surviving family members may challenge the will in certain circumstances.	Generally, once a gift deed is executed and registered, it is less susceptible to challenges.

Get a Registered Will Deed With NoBroker

Keep in mind that the specific procedures and requirements for registering a will deed can vary by jurisdiction. It’s crucial to consult with a legal professional or the local registrar’s office to understand and adhere to the specific regulations in your area. NoBroker has the best legal and financial expertise available. Start your will deed registration through NoBroker today!

Frequently Asked Questions

The Deed of Release: A Key Element in Property Transactions

The deed of release plays a pivotal role in property transactions in India, often facilitating smooth transfer and settlement among parties. Here, we have compiled some key pieces of information regarding deed of release such as its types, implications, formats and more.

What is a Release Deed?

A release deed is a legal document used in the transfer of property rights. It is typically executed when one party (the releasor) decides to relinquish their rights in a piece of property to another party (the releasee). This deed is crucial in scenarios where multiple parties hold an interest in a property, and one wishes to give up their share or rights, effectively transferring them to another co-owner or a specified individual.

The release deed is commonly used in family and inheritance scenarios, where a member may choose to forgo their share in favor of another family member. This instrument is different from a sale deed as it usually involves a transfer without monetary consideration, particularly among family members.

Know The Different Types of Release Deeds, Their Applications and Their Implications

Release deeds can be categorized into different types, each serving specific purposes in property transactions. Understanding these types is crucial for anyone involved in property dealings or estate management. Here’s a detailed look at each type:

Full Release Deed

• Purpose: This type is used when a releasor relinquishes all their rights and interests in a property to the releasee.
• Application: Common in scenarios where an individual wants to completely transfer their ownership stake, such as in family settlements or relinquishing inheritance rights.
• Legal Implication: Once executed, the releasor has no remaining rights or claims over the property.

Partial Release Deed

• Purpose: Here, only a portion of the releasor’s rights or interests in a property is transferred to the releasee.
• Application: Useful in situations where a co-owner wants to give up a part of their share in the property, maybe to another co-owner or a third party.
• Legal Implication: The releasor retains some rights or interests in the property after the execution of this deed.

Conditional Release Deed

• Purpose: This type involves the release of property rights contingent upon certain conditions being met.
• Application: Often used in business transactions where the release of rights is linked to performance criteria or other conditions.
• Legal Implication: The release deed becomes fully effective and enforceable only upon fulfillment of the stipulated conditions.

Release Deed Among Family Members

• Purpose: Specifically designed for property transfers within a family, usually without financial consideration.
• Application: Commonly used for the distribution of property among heirs or as part of estate planning.
• Legal Implication: Often subject to different legal and tax treatments, especially concerning stamp duty and registration charges.

Release Deed in Blood Relation

• Purpose: Similar to the family member release deed but specifically focused on blood relatives.
• Application: Used for property transfer among direct blood relatives, like parents to children.
• Legal Implication: Might have different legal requisites and benefits, especially in terms of reduced stamp duty in some jurisdictions.

Release Deed Without Consideration

• Purpose: Here, the transfer of property rights is made without any financial compensation to the releasor.
• Application: Typically seen in altruistic transfers, like gifting property to a family member or a charitable trust.
• Legal Implication: While no monetary consideration is involved, the deed still needs to be legally executed and registered.

The Implications of a Release Deed

The execution of a release deed indeed has substantial legal ramifications that each of the parties involved must be aware of. These implications include:

Transfer of Rights

The most direct implication of a release deed is the transfer of property rights. This can be either a full or partial transfer. In a full transfer, the releasor gives up all their rights to the property, effectively transferring complete ownership to the releasee. In a partial transfer, only a specific portion or aspect of the property rights is transferred, allowing the releasor to retain some stake or interest in the property.

Tax Implications

Tax considerations are an important aspect of release deeds, and they can vary significantly based on several factors. If the property has appreciated in value since it was originally acquired, the releasor may be subject to capital gains tax, even if the release deed is executed without financial consideration. The release deed must be stamped and registered, which involves costs. These costs can vary depending on the state, the value of the property, and the relationship between the parties involved. In some cases, if the release deed is among family members, there may be concessions or exemptions in stamp duty.

Legal Binding

A release deed is a legally binding document once it is properly executed, stamped, and registered. This means that the terms of the deed are enforceable in a court of law. If disputes arise, parties can contest the release deed in court. However, proving a deed invalid can be challenging, especially if it has been properly drafted and executed. To avoid legal disputes, it’s crucial that the deed clearly states the intent of the parties, the property in question, and the rights being released. It should also adhere to all the legal formalities required for such documents.

Release Deed in Blood Relation

In cases involving blood relations, the release deed is a preferred legal instrument for the transfer of property rights within a family. This approach is often chosen due to its specific benefits:

• Reduced Stamp Duty: Many Indian states offer significant concessions on stamp duty for release deeds executed between blood relatives. This reduction in stamp duty makes it a cost-effective option for transferring property within families.
• Simplified Process: The process for executing a release deed in blood relations is generally more straightforward compared to standard property transfers. The legal requirements are often less stringent, reflecting the trust and close relationship between the parties involved.

Release Deed Among Family Members

Release deeds are also commonly used among wider family members, beyond immediate blood relations, for property succession or settlement:

• Estate Planning: These deeds are often employed as a tool in estate planning, allowing for the distribution of property among heirs in a manner that may be more harmonious and agreeable than other methods.
• Legal Recognition: The deed provides a clear legal recognition of the transfer, safeguarding the interests of all involved parties. It helps in avoiding disputes among family members regarding property rights in the future.

Release Deed Sample Format

A standard format for a release deed typically includes:

• Details of the Parties: Names, addresses, and identification details of both the releasor (the party releasing the rights) and the releasee (the party receiving the rights).
• Property Description: A thorough description of the property, including its location, size, boundaries, and any other relevant characteristics.
• Terms and Conditions: Any specific terms or conditions related to the release of the property should be clearly stated.
• Signatures and Witnesses: The deed should include the legal signatures of both parties, and where required, signatures of witnesses to the transaction.

Here’s a sample release deed that you can use as a template-

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RELEASE DEED FOR SELF ACQUIRED PROPERTY 

This DEED OF RELEASE 

executed on this the day of                                                 ,20        ,  by                                                   _            _                                                        s/o                                                                                           residing  

at                                                                                                                                                    hereinafter referred to as the RELEASORS of the One Part; 

AND IN FAVOUR 

OF                                                                         s/o                                                                          residing at                                                                                                                                                    hereinafter referred to as the RELEASEE of the Other Part; 

The term RELEASORS and RELEASEE shall mean and include their heirs, executors, legal representatives and assigns. 

WHEREAS the property measuring an extent of                             sq.ft and building thereon situated in Door No.                   Road in                                                                    Village, in Survey No.                                                & within the limits of                                                             District was acquired by/through the father of the Releasor and the Releasee herein in and by sale deed dated                                      from                                                                 and registered as Document No.              of Book 1 volume                   filed at pages             to              on the file of the Sub Registrar of                                                                          _ 

WHEREAS the father of the Releasor and the Releasee died intestate on leaving behind the Releasor and Releasee as his class 1 legal herirs. 

WHEREAS the property more fully described in the Schedule hereunder is one of indivisible and it has been agreed by the Releasor to releasee his undivided                                                        right in the property in favour of the Releasee and the Releasee has also accepted for the same. 

NOW THIS DEED OF RELEASE WITNESSETH AS FOLLOWS; 

THAT the RELEASOR did not received any consideration from the RELEASEE herein has released and relinquished his undivided                                                        right in the property more fully described in the Schedule hereunder in favour of the RELEASEE herein. 

THAT the RELEASOR here after do not have any right, title, interest over the schedule mentioned property and the RELEASEE hereafter enjoy the same absolutely with full right, title and interest over the property more fully described in the schedule hereunder. 

THAT the RELEASOR covenant and undertake to execute any further documents that may be necessary for assuring the title in favour of the RELEASEE herein in respect of the property more fully described in the schedule hereunder at the cost of the RELEASEE. 

SCHEDULE OF PROPERTY 

In Witness Whereof the RELEASORS have set their hands and Signatures on the day, month and year first above written in the presence of 

WITNESSES:
1.	RELEASOR
2.	RELEASEE

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Documents Required for Release Deed

The essential documents for executing a release deed include:

• Original Property Documents: The title deed and any previous sale deeds to establish the chain of ownership.
• Identification Proof: Valid government-issued identification like PAN cards or Aadhaar cards for all parties involved.
• No Objection Certificate (NOC): If required, an NOC from relevant authorities, such as housing societies or local government bodies, might be necessary.

How Can NoBroker Help

NoBroker, with its comprehensive legal services, offers invaluable assistance in navigating the complexities of release deed transactions. Their team of experienced legal professionals provides expert guidance on release deeds, ensuring that all documents are legally compliant and tailored to individual needs. Check out NoBroker legal services for comprehensive legal advice when it comes to real estate transactions.

Frequently Asked Questions

Trust Deeds in India: A Complete Guide

Discover the nuances of trust deeds in India, from their meaning to the process of obtaining and registering them. Gain insights into the trust deed format through a concise exploration of this crucial legal document.

How Trust Deeds Work: Unveiling the Mechanism of Trusts

Understanding how trust deeds work is akin to unravelling the intricate mechanism of a trust. Here’s a step-by-step breakdown to demystify the process:

1. Creation of the Trust

When someone decides to establish a trust, they initiate the process by creating it. This involves transferring assets—these can be anything from property to funds—into the trust. These assets essentially become the “trust property” held for specific purposes.

2. Appointment of a Trustee

A crucial aspect of the trust’s functioning is the appointment of a trustee. The trustee is an individual or entity entrusted with the responsibility of managing and overseeing the trust property. This includes making decisions about how the assets are invested, utilized, and ultimately distributed.

3. Outlining Rules in the Trust Deed

The rules and guidelines governing the trust’s operations are documented in what is known as the trust deed. This legal document acts as the rulebook or constitution of the trust, providing a blueprint for how the trust is to be managed and how its assets are to be handled.

4. Legal Binding of the Trustee

Once the trust deed is in place, the trustee becomes legally bound to adhere to the rules outlined within it. This legal obligation ensures that the trustee operates in the best interest of the trust and its beneficiaries.

5. Intended Purpose

The core purpose of a trust is typically outlined in the trust deed. This could involve supporting specific beneficiaries, managing assets for the benefit of family members, or contributing to charitable causes. The trustee’s actions are directed toward fulfilling these intended purposes as specified in the trust deed.

6. Guiding the Trustee

The trust deed serves as a guiding document, steering the trustee in making decisions that align with the goals and objectives set forth by the creator of the trust. It acts as a reference point for the trustee, helping them navigate the complexities of managing and distributing assets responsibly.

A Closer Look at How Trust Deeds Function

Understanding how trust deeds work involves grasping the mechanism of trust. When someone creates a trust, they transfer assets into it, appoint a trustee to manage those assets and outline the rules in the trust deed. The trustee is legally bound to follow these rules, ensuring the assets are used for the intended purposes, such as supporting beneficiaries or charitable causes. The trust deed acts as a guide, steering the trustee in managing and distributing assets responsibly.

Core Components of a Deed of Trust

A deed of trust typically includes crucial details about a property transaction. It outlines the roles of three parties: the borrower (trustor), the lender (beneficiary), and a neutral third party (trustee). 

1. Borrower (Trustor)

The borrower, or trustor, is the individual or entity taking out the loan to acquire the property. In the context of a deed of trust, this party is obligated to repay the loan according to the agreed-upon terms. The trustor’s role is vital as they are essentially the property owner seeking financial assistance.

2. Lender (Beneficiary)

The lender, or beneficiary, is the entity providing the loan to the borrower. They entrust their funds to the borrower with the expectation of repayment, usually with interest. The lender’s interest is secured by the property itself, making the deed of trust a form of security for the loan.

3. Trustee

The trustee is a neutral third party who holds a crucial role in the deed of trust arrangement. Unlike in a mortgage where the lender directly holds the title, in a deed of trust, the trustee holds the title until the borrower fulfils the loan terms. The trustee is responsible for initiating foreclosure proceedings if the borrower defaults on the loan, acting as a safeguard for the lender’s interests.

Key Information Included in a Deed of Trust

Property Description

The deed of trust includes a detailed description of the property being used as collateral for the loan. This description ensures clarity about the specific real estate involved in the transaction.

Loan Amount

The document specifies the amount of money being lent to the borrower. This is a critical element, as it outlines the financial terms of the agreement.

Repayment Terms

The terms and conditions for repaying the loan are explicitly stated in the deed of trust. This includes the schedule of payments, interest rates, and any other relevant details regarding loan repayment.

Conditions for Foreclosure

One of the significant features of a deed of trust is its provision for foreclosure. The document outlines the conditions under which the trustee can initiate foreclosure proceedings, such as the borrower’s failure to meet repayment obligations.

Know the Common Trust Deed Format

A deed of trust is a lengthy and comprehensive document. The following is a rough exemplar format you can use for reference-

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DEED OF TRUST

THIS DEED OF TRUST executed at _______on this _________day of_________20 ____, 

BETWEEN 

_____________________________ (Party of the first part) hereinafter called 

“SETTLOR” OF THE ONE PART 

AND 

1. _________________ S/O. ________________, residing at ____________ & 

2. __________________S/O. ________________, residing at ____________ & 

3. SMT. W/O SHRI. , of ____________ 

(Hereinafter called ” The Trustees” which expression shall unless repugnant to the context or meaning thereof be deemed to include the survivors or survivor of them and the trustees or trustee for the time being of these presents and their heirs, executors and administrators of the last surviving trustee, their or his assignees) of the other part; 

WHEREAS the SETTLOR is possessed of the sum of Rs. ___________/- (Rs. __________)only and assets and properties mentioned in the Schedule hereunder as his absolute property and he is desirous of creating a Religious/ Charitable/Educational Trust for the benefit of the humanity at large. 

AND WHEREAS each of the parties hereto of the “Other Part” has individually and jointly has agreed to act as Trustees of the Trust, proposed by the party of the first part. 

AND WHEREAS nothing contained in this deed shall be deemed to authorize the trustees to do any act which may in any way be construed statutory modifications thereof and all activities of the trust shall be carried out with a view to benefit the public at large, without any profit motive and in accordance with the provisions of the Income Tax Act, 1961. 

AND WHEREAS the trust is hereby expressly declared to be a public charitable trust and all the provisions of this deed are to be constituted accordingly. 

NOW THIS DEED OF TRUST WITNESSTH AS FOLLOWS: 

1. Settlement: 

The party of the first part, the SETTLOR, does hereby settle the sum of Rs._______ /- (Rs. __________ only) in Trust, with the name and for the objects hereinafter stated, by delivering the said amount in cash which the party of the other part, the Trustees, have accepted the receipt of which they do hereby acknowledge, to hold the same in and to the Trustees with the powers and obligations as provided hereinafter. 

2. Name: 

The name of the Trust shall be “____________________________”. 

3. Place: 

The principal office of the Trust shall be situated at ______________________. The Trust may also carry on its work at any other place or places, as decided by the Trustees. 

4. Objects: 

The objects of the Trust are – 

(a) Educational – to run, maintain or assist any educational or other institution for coaching, guidance, counselling or vocational training or to grant individual scholarships for poor, deserving and needy students for elementary and higher education. 

(b) Medical – to run, maintain or assist any medical institution, nursing home or clinics or to grant assistance to needy and indigent persons for meeting the cost of medical treatment. 

(c) Relief of the poor – to give financial or other assistance in kind by way of distribution of books, notebooks, cloths, uniforms, or meals for the poor and indigent and to the persons suffer due to natural calamities. 

(d) Old age and Physically challenged – Establishment, conduct, maintenance of old age homes, homes for physically challenged men, women and children and persons with similar disabilities and also for granting financial assistance to institutions performing similar activities. 

(e) Other objects of general public utility – 

(i) to acquire property for the sole use of the public by making it available for public purposes, for example – a library, clinic, crèche or a community hall to be available for public use as training classes, seminars, discourses and other public functions for benefit of the community in general. 

(ii) to undertake any other activity incidental to the above activities but which are not inconsistent with the above objects. 

The TRUSTEES do hereby agree that they shall hold and stand possessed of the said trust assets, properties and funds (which expression shall include all investments in cash or kind or in any nature whatsoever into and for which, the said property or a part or parts thereof may from time to time be converted, varied or exchanged) and/ or such investments as may be held by the TRUSTEES from time to time in relation to these presents together with all income, profits, additions and accretions thereof, upon trust for the object set out above with and subject to the provisions and conditions hereinafter contained in these presents. 

5. Beneficiaries: 

The Trust is established for the benefit of the citizens of India and the class of people mentioned above without discrimination of caste, religion, creed or sex. 

6. Properties: 

The Trust properties shall consist of 

(a) The amount Transferred by the SETTLOR as mentioned above, towards the Corpus fund of the Trust. 

(b) The immovable properties and other assets transferred by SETTLOR as mentioned above. 

(c) Any cash, kind, properties, movable and immovable that may be acquired by purchase or otherwise or all manner of rights, title or interest in or over any property movable or immovable 

(d) All additions and accretions to the Trust properties and the income there from 

(e) All donations, gifts, legacies or grants, in cash or kind accepted by the Trustees upon Trust. The properties of the Trust shall be utilized for the objects set forth herein above and subject to the provisions and conditions herein mentioned. 

7. Funds: 

The Trustees may accept donations, grants, subscriptions, aids or contributions from any person, Government, Local authorities or any other charitable institutions, in cash or in kind including immovable property without any encumbrance, but the Trustees shall not accept any receipt with any condition or terms inconsistent with the objects of the Trust. While applying such receipts to the objects, the Trustees shall respect the directions, if any, by the granter. Any receipt with specific direction to treat the same as part of the corpus of the Trust or separate fund shall be funded accordingly. 

8. Investments: 

(a) All monies, which will not be immediately required for current needs shall be invested by the Trustees in eligible securities and investments, or in banks. Such investments shall be in the name of the Trust. 

(b) That the trustees shall invest the trust fund, carry on any business with the trust fund and/or enter into partnership on behalf of the trust, as they may deem fit. 

(c) That the trustees shall manage the trust fund and investments thereof as a prudent man would do the same. They shall recover all outstanding and meet all recurring and other expenses incurred in the upkeep or management thereof. 

(d)That the trustees shall receive and hold the income of the trust on behalf of and for the benefit of the beneficiaries under the trust. 

9. Number of Trustees and their Term: 

The Trust will be managed by a Board of Trustees consisting of not less than 2 trustees and not more than 9 trustees. The parties of the Other Part will be First Trustees and they shall automatically form the Board of Trustees. 

The first Managing Trustee shall be the SETTLOR and he will hold office for his life time. After the demise or relinquishment of office of the Managing Trustee or in the event of the first Managing Trustee failing to nominate his successor in office, the remaining trustees shall elect one of the other Trustees as Managing Trustee. 

The term of office of First Trustees shall be for their respective lives. The Board of Trustees shall have the power to increase the total number of Trustees upto the maximum number stated above and fix their term as per provisions contained herein. 

Any Trustee, including the Managing Trustee may retire from the Trusteeship hereof by giving two months notice in writing of his or her intention to do so, to the Board of Trustees and after the expiry of the period of notice, the Trustee shall cease to be a Trustee of these presents. 

Any vacancy caused by death of any one of the First Trustees, or any vacancy caused by the resignation of any of the Trustees, may be filled up by co-option by the Board of Trustees. 

The Trustees who are not First Managing Trustee or First Trustees shall hold office for a period of one year from their date of appointment by the Trustees. At the end of this one year period, the Board of Trustees may reappoint them for subsequent term or appoint other persons as 

Trustees in such a manner that the total number of Trustees does not exceed the approved maximum number of Trustees. 

The Managing Trustee shall have the power to remove a Trustee suffering from physical or mental disability or if he is accused of misfeasance of trust funds or property or misconduct, after satisfying himself on enquiry and such action of the Managing Trustee shall be final. 

The proceedings of the Board of Trustees shall not in any way be invalidated due to any post or posts remaining vacant. During the time when a vacancy is yet to be filled up, the remaining 

Trustees shall act as “Full Board”, subject to the presence of Quorum in the meetings. Any vacancy in the Board of Trustees or illegality in the appointment of Trustees or their proceedings shall not invalidate any prior act or decision of the Board. 

10. Administration of Trust and Power of Board 

The Board of Trustees shall have power to: 

(a) To administer the Trust, its properties and affairs and do all the things which will fulfill the performance of the objects for which the Trust is established and for this purpose the Board can apply the whole or any part of the Trust property towards the payment of the expenses of the Trust. 

(b) The income and the properties of the Trust will be solely utilized towards the objects of the Trust and no portion of it will be utilized for payment to the Settlor or Trustees or their relatives by way of salary, allowances, profit, interest, dividend etc. 

(c) To open one or more bank accounts and operate the same or provide for operation of the said accounts by any two among them authorized on their behalf. 

(d) To invest the Trust funds in the manner not prohibited by any provisions of the Income Tax Act, 1961. 

(e) To buy, sell, mortgage, grant, lease, hire or otherwise alienate all or any of the properties of the Trust in its discretion for adequate consideration. However any sale or alienation of immovable properties of the trust can be done only after obtaining the prior approval of the appropriate authorities. 

(f) To execute Power of Attorney or Powers of Attorney to any person for the purpose of executing, administering or managing the whole or any part of the Trust for the purpose of all or some objects of the Trust. 

(g) To borrow money with or without security and to repay the same. 

(h) To receive, collect and enforce recovery of all monies due or payable to the Trust and grant receipts and discharges therefore. 

(i) To settle, compromise or compound any disputes or refer the same to arbitration 

or litigation. 

(j) To receive voluntary contributions from any person or persons from India or outside, after complying with the statutory formalities, by way of donation, gifts or in any other manner and to hold the same upon Trust for the objects set forth herein. 

(k) To appoint, suspend, dismiss or otherwise deal with the staff required for the administration of the Trust, to frame rules relating to their salaries and other benefits and generally to exercise all powers ancillary and incidental to effectively carry out the objects of the Trust. 

(l) The Board shall have power to make and rescind rules and regulations for the management and administration of the Trust. 

(m) No Trustee shall commit any act or breach of Trust of the Trust fund or property or cause any loss to the Trust property or commit fraud in the administration of the Trust fund / property. 

(n) The Trustees shall hold honorary office and shall not be entitled to any Salary, allowances or perquisites, except for the reimbursement of actual expenses incurred in connection with attending to the Trust matters. 

(o) The Board of Trustees will follow the instructions given by any donor who makes substantial contribution towards furtherance of the objects of the Trust, so long as such instructions are not detrimental to the attainment of the objects of the Trust and are in conformity with the provisions of the Income-tax Act, 1961. 

(p) For the management and administration of the Trust, the Trustees shall elect one amongst themselves for each of the offices of Vice President, Secretary and Treasurer. The term of office for Vice President, Secretary and Treasurer shall be for a period of one year from their date of appointment and they may be re-elected for further terms. No Trustee including the Managing Trustee shall hold more than one of the above offices at the same time. The persons holding these offices of Vice President, Secretary and Treasurer shall be under the administrative guidance and supervision of the Managing Trustee and will report to him directly. 

11. Roles and Responsibilities: 

The Roles, Responsibilities and powers of all the officers are detailed below. In addition to these, the Managing Trustee may grant additional roles, responsibilities and powers to any of the Trustees. 

(a) Managing Trustee – 

The Managing Trustee shall preside over the meeting of the Board of Trustees. The Managing Trustee is authorized to sign all documents, including bank documents, acknowledgements for the contributions received, and agreements with individuals, Government Institutions and other organizations, on behalf of the Board of Trustees. The Managing Trustee shall have all the residuary powers, not explicitly assigned to any of the other officers in these presents. The Managing Trustee is authorized to sign along with the Treasurer, bank cheques, deposit release vouchers etc. The Managing Trustee is empowered to remove any Trustee from the Trust and its offices, if he finds that his/her activities are not congenial to the activities of the Trust. The Managing Trustee is responsible for ensuring that the Trust pursues its Objects and for maintaining the dignity of the Trust organization and shall use his influence to promote the activities of the Trust. 

(b) Vice President – 

The Vice President shall discharge the duties of the Managing Trustee, in the absence of the Managing Trustee of the Trust and shall have the power and authority delegated and assigned to him/her by the Managing Trustee. 

(c) Secretary 

The Secretary shall maintain the records of the trust, prepare and circulate agenda for Board of Trustees’ meeting for the approval of the Managing Trustee and also prepare the minutes of the Board meeting. The Secretary shall be also responsible for the day to day administrative activities of the Trust. The Secretary shall deal with correspondence received by the Trust, send replies in consultation with the Managing Trustee, Vice President and/or the Treasurer wherever necessary. He/she will be responsible for the safe custody of all the properties and records of the Trust. The Secretary shall represent the Trust in all legal matters, sign the papers related to legal cases, attend to courts or represent the Trust in Government offices. 

(d) Treasurer 

The Treasurer will prepare Annual Budget, monthly and yearly expenditure statements get the expenditure audited by auditor duly appointed by the Board of Trustees and place them before the Board of Trustees for approval. The Treasurer is responsible to maintain cash book and prepare vouchers for the payments made, receive contributions, sign acknowledgements for the amounts or articles received by the Trust and prepare monthly and yearly statements of revenue and expenditure, as well as, the register of assets of the Trust and place them before the Board of Trustees for their approval. The Treasurer is authorized to sign bank cheques, application for drafts and payment instructions jointly with the Managing Trustee and draw money from the bank, upto the limits defined by the Board of Trustees in their meetings. The Treasurer is responsible for safe custody of cash, bonds, securities etc. of the Trust. 

12. Meeting of the Board of Trustees: 

The Board of Trustees should meet atleast once in every calendar quarter and may meet more often when required. 

(a) The meeting of Board of Trustees shall be convened by the Managing Trustee and he shall preside over the meetings. In his absence, the Managing Trustee may authorize the Vice President to be the Chairman of such meetings. In the event the Managing Trustee or Vice President are not able to attend the meeting already convened, any of the Trustees present in the meeting may elect one amongst themselves to be the Chairman of the meeting. 

(b) One half of the Board of Trustees or a minimum of two trustees, whichever is higher, shall constitute the Quorum for the Board of Trustee meetings. 

(c) All decisions shall be carried out by the majority decision of the Board but in the event of equality of votes, the Chairman presiding over the meeting shall have a casting vote. 

(d) Any resolution in writing signed by all the Trustees by circulation shall have equal force as though it has been passed at a meeting of the Board of Trustees. 

(e) The meeting of the Board shall be conveyed after giving at least a week’s notice unless all the Trustees agree to accept a shorter notice. 

(f) The Board of Trustees may invite other persons interested in the objects and functioning of the Trust to attend the meetings of the Board, but they shall not be entitled to vote in the meetings of the Board. 

13. Bank Account: 

All income, subscription and pecuniary donations for the general purposes of the Trust and the income, investments and all other money from time to time forming part of the general revenue of the Trust shall on the same being received be paid into a bank account with any scheduled bank for the purpose of the Trust. The bank accounts shall be operated by the Managing Trustee along with any one of the remaining Trustees. One or more Bank Accounts may be opened in any Bank and/or Banks in the name of the Trust. 

14. Accounts And Audit: 

The financial year of the Trust shall be from 1st April to 31st March of the following year, unless otherwise decided by the Board of Trustees. The Trustee shall maintain proper books of account of all the assets, liabilities and income and expenditure of the Trust and shall prepare an Income and Expenditure Account and Balance Sheet for every year as on the last day of March. The accounts of the Trust shall be annually audited by a Chartered Accountant or a firm of Chartered Accountants who shall be appointed for that purpose by the Trustees and the audited accounts shall be placed at a meeting of the Trustees, which shall be held before the end of the succeeding year. 

15. Irrevocable: 

This Trust is declared irrevocable. 

16. Amendments: 

While this Trust shall be irrevocable, the Board of Trustees may amend any of the clauses except those relating to objects of the Trust. The First Managing Trustee and First Trustees may do so, at a duly convened meeting of the Board with at least two weeks’ notice, and by a resolution passed by atleast three-fourth majority of the Board of Trustees present and voting. The amendments to the Trust deed can only be passed by a resolution of the Board of Trustees in an actual meeting and not by circulation. If any alteration or amendment is necessary, the same shall be affected through supplementary deed/deeds with the previous approval of the Commissioner of Income Tax and these shall be read together with the main Trust deed. 

17. Amalgamation: 

The trustees may amalgamate the Trust with another Charitable Trust or Institution having similar objects with prior permission of the Charity Commissioner/Court/any other law as may be applicable for the time being. 

18. Settlor and their Relatives: 

Notwithstanding the powers vested with the Trustees, no part of the income of the Trust shall benefit directly or indirectly the trustees and no part of the income of the property of the Trust shall be used or applied directly or indirectly for the benefit of: 

(a) SETTLOR, Managing Trustee, Trustees or any person who makes a substantial contribution to the Trust or of any relative of the SETTLOR, Managing Trustee, Trustees or the person who makes a substantial contribution. 

(b) Any “related concern” in which any of the above persons has substantial interest. 

(c) For the purpose of this clause, the word “relative” and the phrases “related concern”, “substantial interest” and “substantial contribution” shall have the meanings assigned to them in the Income Tax Act, 1961. 

19. Applicability Of Trust Act: 

The provisions of the Indian Trust Act, 1882 (or any other applicable state specific trust Act) shall apply to all matters not specifically mentioned in these presents. 

20. Dissolution: 

In the event of dissolution or winding up of the Trust the assets remaining as on the date of dissolution shall under no circumstances be distributed amongst the Trustees but the same shall be transferred to some other similar Trust/Organisation whose objects are similar to those of this Trust with the permission of the Charity Commissioner / Court / any other law as may be applicable for the time being. The Trustees shall be indemnified against all losses and liabilities incurred by them in the execution of the Trust and shall have a lien over the funds and properties of the Trust for such indemnity. 

SCHEDULE 

At present, the Trust has no property or assets, either movable or immovable, other than the Trust Fund and the immovable properties, donated by the SETTLOR, as described in the Schedule below: 

1. Cash contribution to the Corpus Fund of the Trust of Rupees ————— (Rupees ————————————————————————– only) 

2. Properties of ————————————————————————– 

3. Assets of —————————————————————————– 

IN WITNESS WHEREOF, The Parties hereunto have signed and delivered the presents on the day and year first hereinabove written. 

SETTLOR 

WITNESS: 1. TRUSTEE ____________ 

1. 2. TRUSTEE ____________ 

2. 3. TRUSTEE ____________ 

Understanding the Differences Between Deed of Trust and Mortgage

While both a deed of trust and a mortgage serve as security for a loan, they differ in their structures. In a deed of trust, there are three parties involved: the borrower, the lender, and the trustee. The trustee holds a “power of sale” that allows them to sell the property if the borrower defaults. On the other hand, a mortgage involves just two parties—the borrower and the lender—and it typically requires a judicial foreclosure process. So, the primary distinction lies in the number of parties and the foreclosure process.

Contrasts Between Warranty Deed and Deed of Trust

A warranty deed and a deed of trust serve different purposes in a real estate transaction. A warranty deed is a document that transfers ownership of a property and guarantees that the seller has clear title to the property. It’s essentially a promise that the property is free from any liens or encumbrances. On the contrary, a deed of trust is a security instrument that is used to secure a loan, involving a trustee who holds the power to sell the property if the borrower defaults. In simple terms, one assures ownership, while the other secures a loan.

A trust deed is not merely a legal document. It forms the foundation of trust in the relationships between the borrower, lender, and trustee in the context of property transactions. It defines the rules, safeguards the interests of all parties, and outlines the conditions under which foreclosure can occur.

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FAQs

Deed of Reconveyance in India: All You Need to Know

A Deed of Reconveyance in India is a vital legal document, especially in the realm of mortgages. It plays a significant role in property transactions and debt repayment. In this article, we’ll delve into the meaning, format, registration, and importance of a reconveyance deed in India.

What is a Deed of Reconveyance?

A Deed of Reconveyance, also known as a reconveyance deed, plays a pivotal role in property transactions, particularly those involving mortgages. This legal document carries substantial significance for both borrowers and lenders and encompasses various essential aspects, including the reconveyance deed’s meaning, the reconveyance of a mortgage, its format, and more.

At its core, the reconveyance deed’s meaning is the transfer of property title from the trustee to the trustor. The trustor, in this context, is the individual who borrowed funds to finance the purchase of the property. This transfer occurs once the trustor has fully repaid the mortgage, marking a crucial milestone in property ownership.

The concept of reconveyance is intimately connected with the repayment of a mortgage. When someone opts for mortgage financing or a home loan to acquire a property, a deed of trust is initially employed to secure the lender’s interests. This deed of trust places the property title in trust, designating the lender or trustee as the beneficiary.

Regarding the reconveyance deed’s format, it adheres to specific legal requirements. Typically, it includes comprehensive property details, the names of both the trustor and trustee and a clear statement affirming the complete repayment of the mortgage debt. Notably, the trustee’s signature on the document must be notarized to ensure its legal validity.

To finalize the transfer of property title and make it legally binding, the reconveyance deed must be submitted and recorded at the relevant municipal or provincial records office. The precise registration process may vary depending on the jurisdiction, emphasizing the importance of adhering to regional legal requirements.

In essence, a Deed of Reconveyance signifies a deed of full reconveyance. It serves as a concrete confirmation that the mortgage loan has been paid in full, and the trustor, who was initially the borrower, now holds undisputed ownership of the property. This transition from mortgage holder to property owner marks a significant turning point in a borrower’s financial commitment and property ownership journey.

How Does a Deed of Reconveyance Work?

When a borrower fully repays their mortgage loan, the lender initiates the reconveyance process. The lender contacts the title company, which is responsible for issuing the deed of reconveyance, following the specific legal requirements dictated by state law. This typically occurs within a relatively short timeframe, approximately 3 to 4 weeks after the final loan payment.

A crucial element of the reconveyance process is the meticulous documentation of the property’s legal status. The deed of reconveyance includes essential information such as the name and address of the homeowner or mortgage borrower. This section of the document ensures that the borrower’s identity is accurately recorded.

Additionally, the deed of reconveyance specifies the name of the lender or trustee involved in the mortgage transaction. The trustee, often a bank or financial institution, holds the property title in trust until the mortgage is fully repaid.

One of the fundamental aspects of the reconveyance deed is the legal description of the property. This comprehensive description leaves no room for ambiguity and includes details such as property boundaries, dimensions, and parcel numbers derived from the original deed. This detailed legal description serves to precisely identify the property in question.

The heart of the reconveyance process lies in the proof of the borrower’s fulfilment of their financial obligation. The deed of reconveyance unequivocally states that the property, once used as collateral for the home loan, now exclusively belongs to the borrower. This transition of property ownership from lender or trustee to borrower signifies the culmination of the mortgage.

To add an extra layer of legal validity, the deed of reconveyance must be notarized. This notarization process is typically conducted by a notary public and serves as verification of the document’s authenticity and the validity of the signatures therein.

What Information is Mentioned in a Deed of Reconveyance?

This document encompasses various critical details, including reconveyance deed meaning, reconveyance of mortgage, reconveyance deed format, and more, all serving to establish the transfer of property ownership from the lender or trustee to the borrower.

Name and Address of the Homeowner/Mortgage Borrower

• At the outset, the reconveyance deed identifies the homeowner or mortgage borrower. It provides the borrower’s full name and current residential address.

Name of the Lender/Trustee

• Additionally, the document specifies the name of the lender or trustee involved in the mortgage transaction. The trustee holds the property title in trust until the mortgage is fully repaid.

Legal Description of the Property and Parcel Number

• A fundamental aspect of the reconveyance deed is the inclusion of a comprehensive legal description of the property. This description is meticulous and ensures precise identification of the property.
• Parcel numbers, derived from the original deed, are often included to further define and reference the property’s legal status.

Proof of Fulfillment of Borrower’s Obligation

• The core purpose of the reconveyance deed is to furnish irrefutable evidence that the borrower has dutifully fulfilled their financial obligation to the lender.
• This section of the deed unequivocally states that the property, once held as collateral for the home loan, now rightfully and solely belongs to the borrower. This marks the complete transition of property ownership.

Signatures of Parties Involved

• The reconveyance deed bears the signatures of all relevant parties in the transaction. Typically, this includes the borrower, the lender or trustee, and in some cases, a notary public.
• These signatures signify the unanimous consent and agreement to the terms and conditions stipulated within the reconveyance deed.

Notary Stamp

• To enhance the document’s legal validity, a notary stamp is affixed to the reconveyance deed. This stamp serves as confirmation that the signatures on the document have undergone verification by a notary public, thereby affirming both the authenticity of the signatures and the overall legitimacy of the document.

Why is a Deed of Reconveyance Important?

The significance of a Deed of Reconveyance is multifaceted, encompassing reconveyance deed meaning, reconveyance of mortgage, and ensuring a clear title, making it a vital document for homeowners. Here, we explore the key reasons why a deed of reconveyance is essential.

1. Establishing a Clear Title

A central role of the reconveyance deed is to provide tangible evidence that a property holds a clear title. This means that the property is free from any outstanding mortgages, liens, or claims.

In real estate transactions, having a clear title is highly desirable and often a requirement for buyers. It assures them that the property they are purchasing is unencumbered by financial encumbrances, enhancing their confidence in the transaction.

2. Facilitating Property Sale

When homeowners decide to sell their property, the reconveyance deed becomes a crucial asset. It serves as compelling proof that the mortgage has been fully repaid and that the property has transitioned to the homeowner’s sole ownership. Without this documentation, selling a property can become challenging, as prospective buyers typically seek assurance of a clear title to proceed with the purchase.

3. Protecting Homeowner’s Rights

Even if there are no immediate plans to sell the property, a reconveyance deed remains vital for homeowners. It acts as a safeguard against potential claims from lenders. This means that the lender cannot assert any continued interest or ownership rights in the property once the mortgage is paid off. This protection ensures that homeowners can enjoy undisputed ownership and control of their property.

4. Acknowledging Mortgage Repayment

The reconveyance deed signifies the successful completion of mortgage repayment. It serves as tangible proof that the homeowner has fulfilled their financial obligation to the lender or trustee. This acknowledgement is pivotal in ensuring that the property is no longer encumbered by the mortgage, marking the transition from mortgage holder to property owner.

5. Maintaining Financial Responsibilities

While the mortgage may be paid off, homeowners must remain aware of their ongoing financial responsibilities. Property taxes, for instance, continue to be the homeowner’s obligation, separate from the mortgage. Ensuring the timely payment of property taxes is essential to maintain the property’s status and rights.

What Happens if a Deed of Reconveyance Isn’t Filed?

A Deed of Reconveyance is crucial for property transactions and mortgage repayment, as it establishes a clear title and protects property rights. However, failing to file this document can lead to complications for homeowners and potential buyers.

When a Deed of Reconveyance goes unfiled, it creates title issues, burdening the property with an outstanding mortgage debt. Attempting to sell the property becomes challenging, as buyers require a clear title, free from liens or claims.

Inaccuracies within the document and the absence of a lien release can exacerbate title problems. The title company, during a title search, highlights these issues, complicating property sales.

Ultimately, homeowners must ensure the proper filing and registration of reconveyance deeds, address errors, and verify a clear title when selling their property. Understanding its importance is essential to maintain clear property titles and protect the interests of homeowners and buyers alike.

Reconveyance Deed Format

The Deed of Reconveyance format is as follows-

RECONVEYANCE DEED 

THIS INDENTURE made at ………………… this ………………… day of ……………….., 2000, between A, son of ……………….. resident of ………………… hereinafter called the Mortgagee of the ONE PART and B, son of ………………… resident of …………………. hereinafter called the Mortgagor of the OTHER PART. 

WHEREAS the Mortgagor mortgaged in favour of the Mortgagee the property described in the Schedule hereunder written, by an Indenture of Mortgage dated the ………………… day of ………………… 19 …… registered in the Office of Sub-Registrar of Assurances ………………. under Serial No. ………………… of 19 ….. under date ………………… to secure a loan of Rs. ………………… lent by the Mortgagee to the Mortgagor. 

AND WHEREAS the Mortgagor has paid a sum of Rs. ………………… on account of principal and interest thereon payable under the said Mortgage and is willing to pay the balance of Rs. ………………… for the redemption of the mortgage. 

NOW THIS DEED WITNESSETH THAT in consideration of the payment of Rs. ………………… to the Mortgagee by the Mortgagor paid in full of the principal sum and interest due and owing to the mortgagee on the security of the said Indenture of the Mortgage (the receipt whereof the Mortgagee doth hereby admit and acknowledge and of and from the same doth hereby acquit, release and forever discharge the Mortgagor), the Mortgagee doth hereby retransfer and reconvey to the Mortgagor all that the said mortgage property, more particularly described in the Schedule hereto, to have and hold the same unto the Mortgagor absolutely and free from encumbrances of any kind whatsoever and discharged from all claims, demands and rights of the Mortgagee under the said mortgage and the Mortgagee hereby covenant with the Mortgagor that he has not done or knowing or willingly suffered or been party or privy to any act, deed or thing whereby or by reason of means whereof the said mortgaged property hereby reconveyed or retransferred or intended so to be or any of them or any part thereof may or shall be impeached, affected or encumbered in title, estate or otherwise howsoever. 

AND THE MORTGAGEE HEREBY DECLARES AND CONFIRMS that title deeds he has delivered the title deeds in respect of the mortgaged property and the Deed of Mortgage to the Mortgagor. 

IN WITNESS WHEREOF, the said Mortgagee has hereunto set his hand the day and year first hereinabove written. 

The Schedule above referred to 

Signed and delivered by the within-named Mortgagee

A deed of Reconveyance is your key to property ownership and a clear title. Its absence can hinder property sales, create legal complexities, and keep your property in the lender’s shadow.

To avoid these pitfalls, ensure prompt registration of your Deed of Reconveyance. NoBrokers Real estate experts can expedite the process and help you secure your property rights hassle-free. Whether you’re a seller, buyer, or homeowner, a properly filed reconveyance deed is your passport to a smooth real estate journey. Take action today and safeguard your property interests with NoBroker’s assistance.

Frequently Asked Questions

Sales Deed vs. Sale Agreement: Understanding the Differences

When it comes to selling and purchasing property, have you heard professionals in the real estate industry throwing around jargon like sale agreement and sale deed, sale and agreement to sell, sales contract, and found yourself in a dilemma? Well, that’s alright; we’re to take you through everything you need to know when it comes to sales deed vs. sale agreement.

Let us break down the concept to comprehend the differences between a sales deed vs. sale agreement.

What is an Agreement for Sale?

An agreement for sale is a land sale agreement that shows the willingness of both parties to buy or sell the property under specific stipulations and conditions. 

An agreement for sale includes the following elements, they are:

1. Proposal to purchase and an agreement to sell in the future.
2. Description of the property.
3. A notice stating the property is free from any legal encumbrances.
4. Value of the property.
5. Payment details.
6. Original documents submitted on the final payment.
7. Description of the method of property delivery.
8. Carrying out of the sale deed.
9. Sale deed registration.
10. Payment refund in case of any conflict.
11. A remedy for any legal issues that may occur.
12. The transfer of tax-related certificates.

For example, in some states in India, like Uttar Pradesh, the draft sale agreement is not considered legally binding until it is registered with the sub-registrar’s office. 

What is a Sale Deed?

Unlike the agreement for sale that only shows willingness for future decisions, a sale deed is drafted on an actual day that the property is sold or transferred. Once the sale deed of the flat is executed, the owner gets complete ownership of the property in question. The sale deed is registered at the registrar’s office under the Registration Act of 1908. 

 A buyer-seller agreement includes the following elements, they are:

1. Information about both the parties involved.
2. Property description
3. Title transfer.
4. The terms and conditions pertaining to the sale consideration.
5. References pertaining to the agreement of sale.
6. Details in regard to price and payment.
7. Transfer of rights claim of the property and interest the new buyer.
8. It is important to mention a clause stating that the previous owner does not hold any authority on the facility, privileges, and overall ownership.
9. Authority of the vendor to sell the property. 

Sale Deed Format

Here is a sample format of a sale deed in India:

SALE DEED

(General)

This deed of sale is executed on ________ day of ______________ month of

_____________ year by Sri./Smt.__________________________,

S/o./ W/o.____________________________, occupation____________________,

and aged __________ years, residing

at_________________________________________________________________

_________________________________________________________________.

hereinafter called the “SELLER”.1

In favour of

Sri./Smt.__________________________S/o./W/o._________________________,

occupation____________________, aged __________ years, residing

at_________________________________________________________________

_________________________________________________________________.

hereinafter called the “PURCHASER”. 2

Whereas, the term SELLER and PURCHASER, unless repugnant to the context

shall mean and include there representatives heirs, successors, executors,

administrators, trustees, legal representatives and assigns.

Whereas, the SELLER herein, is the sole and absolute owner of immovable

property 3

bearing No.___________ known as _____________________ situated

at ________________ and morefully described in the schedule hereunder written

and hereinafter called the schedule property.

Whereas, the SELLER is the absolute owner, having acquired the property, by

____________________

4

and since then SELLER has been in possession and

enjoyment of the schedule property and paying taxes and levies thereon, as sole

and absolute owner thereof.

Whereas the SELLER herein being desirous of selling the Schedule property due

to the reason 5

____________

Whereas the PURCHASER has agreed to purchase the schedule property in terms

an oral / written agreement for a total sale consideration of Rs.____________

(Rupees________________________________________only) and the purchaser

in terms of aforesaid oral / written agreement agreed to pay the entire sale

consideration at the time of execution of the sale deed.

Whereas in consideration of the purchaser having paid the entire sale

consideration Rs.____________Rupees_____________________________only)

Agreement for Sale vs Sale Deed: The difference between Sale Deed and Sale Agreement

1. The agreement for sale implies that the property will be sold in the future, whereas the sale deed signifies the immediate transfer of property.
2. When it comes to the sale and agreement to sell, all risk and liability stay with the seller until the property is transferred. All risk is immediately transferred to the new buyer for the sale deed. Element sales have not been fully implemented; it just shows a willingness. In contrast, the sale of an act is an executed contract.
3. When it comes to sales and agreement to sell, a breach of contract might result in a suit for damages. For the sale of the deed, violation results in legal complaints and monetary compensation for any damages.
4. It is unnecessary to register the agreement for sale, but it is mandatory to report the sale deed. 

Importance of an Agreement for Sale

Consenting to an arrangement available to be purchased is very significant considering a few elements. In the first place, this is a lawful verification of the purchaser and seller going into an understanding. The future strategy would be chosen if there should be any conflict. Additionally, on the off chance that you are applying for a home loan, the bank would not acknowledge your application till you consent to an arrangement available to be bought. 

Sale Agreement Format

Here is a sample of sale agreement for property format in India:

DRAFT OF AGREEMENT FOR SALE

THIS AGREEMENT FOR SALE is made and executed on this the____________ day _____________ of ___________, 200-

BETWEEN

Mr. ____________s/o. ____________ aged_________________ years residing at _____________Hereinafter called “The SELLER” (which expression shall mean and include her legal heirs, successors, successors-in-interest, executors, administrators, legal representatives, attorneys and assigns) of ONE PART.

AND

Mr. ______________ s /o __________ aged­ ________ years residing at__________ ___Hereinafter referred as “The PURCHASER” (represented by his power of attorney) which expression shall mean and include his heirs, successors, executors, administrators, legal representatives, attorneys and assigns of the OTHER PART.

WHEREAS THE SELLER is the absolute owner in possession and enjoyment of the more fully described in the schedule hereunder and hereafter called the “SCHEDULE PROPERTY.

WHEREAS the property more fully described in the schedule hereunder is the self acquired property of the SELLER who purchased the same from Mr._____________ in and by sale deed dated _____________ and registered as Doct No._________of Book 1 Volume No______________Page No_____to_________, registered on and filed on the file of the Sub-Registrar,

WHEREAS the SELLER is the absolute owner of the property and he has been enjoying the same with absolute right and he has clear and marketable title to the Schedule Property

WHEREAS the SELLER being in need of funds for the purpose of ________________ has decided to sell the property more fully described in the Schedule hereunder and the PURCHASER has offered to purchase the same..

WHEREAS the SELLER offered to sell and transfer the schedule property to the PURCHASER for a sale consideration of Rs.___________(Rupees___________ only) and the PURCHASER herein has agreed to purchase the same for the aforesaid consideration on the following terms and conditions:

NOW THIS AGREEMENT WITNESSETH AS FOLLOWS:

The Sale consideration of the Schedule Property is fixed at Rs. __________ (Rupees________ only).

The PURCHASER has paid a sum of Rs.­­­­­­­­­­­­­___________(Rupees _________ only) by cash/ cheque /D.D. bearing No _________ drawn on ___________ dated________ as advance, the receipt of which sum the SELLER hereby acknowledges.

The balance payment of Rs._____________(Rupees _________ only) will be paid by the PURCHASER to the SELLER at the time of execution of the absolute Sale Deed and thus completing the Sale transaction.

The parties herein covenant to complete the Sale transaction and to execute the Absolute Sale Deed by the end of

The SELLER confirms with the PURCHASER that he/she has not entered into any agreement for sale, mortgage or exchange whatsoever with any other person relating to the Schedule Property of this Agreement.

The SELLER hereby assures the PURCHASER and he/she has absolute power to convey the same and there are no encumbrances, liens, charges, Government dues, attachments, acquisition, or requisition, proceedings etc.

The SELLER agrees to put the PURCHASER in absolute and vacant possession of the schedule property after executing the sale deed and registering the same in the jurisdictional Sub-Registrar’s office.

The SELLER covenants with the PURCHASER that he/she shall not do any act, deed or thing creating any charge, lien or encumbrance in respect of the schedule property during the subsistence of this Agreement.

The SELLER has specifically agreed and covenants with the PURCHASER that he/she shall do all acts, deeds and things which are necessary and requisite to convey absolute and marketable title in respect of the schedule property in favour of the PURCHASER or his nominee.

IT IS AGREED between the parties that all expenses towards Stamp Duty and Registration charges shall be borne by the PURCHASER only.

 The PURCHASER shall have the right to nominate or assign his right under this agreement to any person / persons of his choice and the SELLER shall execute the Sale Deed as per terms and conditions of this Agreement in favour of the PURCHASER or his nominee or assignee.

  The SELLER has agreed to get consent deed duly executed to this Sale transaction from his wife/her husband, sons and daughters on or before date of registration of Sale Deed and assured that they all join to execute sale deed in favour of the purchaser.

It is hereby expressly provided and agreed by the parties here to that both parties are entitled to enforce specific performance of the agreement against each other in case of breach of any conditions mentioned in this Agreement.

The original of the “AGREEMENT” signed by both the parties shall be with the PURCHASER and copy of the same similarly signed shall be with the SELLER.

SCHEDULE

IN WITNESS WHEREOF the SELLER and the PURCHASER have signed this Agreement of Sale on the day month and year herein above mentioned in the presence of the witnesses:

WITNESSES:

1.

2.

Signed by SELLER_____________

In presence of

Signed by PURCHASER______________

In presence of

Are Sales Deeds and Conveyance Deed the Same Thing?

The sale deed is considered a type of conveyance deed. But the two have different meanings behind their concept. Conveyance deed is more of an umbrella term, covering exchange deed, mortgage deed, lease deed, etc. All these papers/documents are considered as a part of types of conveyance deeds. Though they need two documents for the property purchase rather than one.

Sale Agreement at The Time of Property Registration

When property is being registered, the new buyers must also present the contract of sale and the other required papers or documents. This ensures that the deal is the same as that made by both parties previously. 

Supreme Court Ruling on Sale Deed and Agreement for Sale

According to the Transfer of Property Act, a contract for sale, whether with possession or without possession, is not a conveyance. The sale of immovable property can be made only by a registered individual as per section 54 of the Transfer of Property Act. Any interest or charge on its subject matter does not create via an agreement for sale.

The Consequences of Not Having Your Paperwork in Order 

According to the Indian Registration Act of 1908, any agreement for transferring an interest in immovable property of value more than 100 rupees must be registered.  Therefore, if you have purchased some property under any contract for sale, it is considered null and void without proper documentation and paperwork.

Before purchasing your abode, it is crucial to understand the terms and differences between the Sales deed vs. sale agreement to have no confusion or misunderstanding.

Some of these things may go over your head, and it may be confusing at first, but that’s alright. Instead of stressing yourself out, we at NoBroker can help you! If you need any help with documentation while buying or selling a house, let our experts help. Click the link below to find out how we make the process of buying and selling safer with great legal assistance. 

FAQs 

Partnership Deed and How It Can Protect Your Interests

Before you invest your savings towards a joint business venture, it is advised that you opt for a partnership deed document that can protect your interests in the time of any internal conflicts. Read more to know about the benefits of the partnership deed and its contents. 

It is tough to be a master of all trades. It is a known fact that when different people have different capabilities, and when they come together the task at hand seems more manageable, and the organization, in general, is improved. 

However, running a business is hard. Keeping up with all the departments like production, finance, marketing, etc., is complicated and requires continuous efforts. That’s one of the primary reasons why entrepreneurs forming a strategic partnership is considered the second most effective way to run a business in any country. Ever since time immemorial, merchants and traders have partnered up with a capable counterpart to run their business. However, the thought of putting all your efforts into running a business that your partner at any moment could exploit could be pretty frightening. Hence, the legal practice of signing a partnership deed is considered essential before embarking on any new project together. 

What is a Partnership Deed?

To define a partnership deed, let’s understand what partnership means in legal terms. Section 4 of The Partnership Act, 1932 states that “Partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all.” 

A partnership deed is a legal document written when two individuals come together and decide to run a business, regardless of the profits or losses incurred. This official document helps ensure that both parties, over time, do not end up in some misunderstanding, conflict, or harassment. Also known as Partnership Agreement, Partnership Deed is registered under the Indian Registration Act, 1908, so that there’s no risk of it being destroyed under the care of any specific individual. Anytime both the partners wish to change the terms of the agreement of the partnership deed, they can do so. If the partnership firm somehow ends up in a courtroom, a partnership deed serves as a legal document that can influence the final decision served. 

Even though it is not necessary to sign a partnership deed before starting a business, it is highly recommended by law to protect your interest and assets. 

What are some of the steps of drafting the partnership deed?

Draft agreement – The partners must select an agreement that includes all of the firm’s pertinent facts and partners.

Obtaining E-stamp paper — purchase the required amount of e-stamp paper and have the deed printed on it.

Sign the deed by getting all of the partners’ signatures on all of the pages of the act, recognising the norms and restrictions.

Whether the deed is attested by a notary or registered, it is up to the partners to decide whether they want the deed attested by a notary or registered.

Features of a partnership deed

What Are the Contents of a Partnership Deed? The following are some of the most important partnership deed features:

• Name and address of the partnership and its co-owners — the partnership deed specifies the name under which the business will operate in the future.
• Content of Partnership deed – The partnership deed includes all partners’ names and current addresses in addition to the owners’ names and addresses.
• Nature of the business – the deed specifies the type of business that will be conducted.
• The location of all offices, as well as the head office, shall be listed in the partnership deed.
• Opening date and location – the time and location of the business’s opening must be clearly stated.
• The duration of the partnership, whether for a definite period or a project, is also included in the deed.
• Owners’ capital contributions — the agreement should specify how much money each owner has contributed.
• Profit-sharing ratio — it must state the proportion of earnings received by partners.
• Audit Details – Details of the audit procedure are also included in the cooperation agreement. (The partnership agreement format is easily available on the internet).
• Admission, retirement, or death of partners – the regulations govern the admission, resignation, or death of any partner in the firm in the deed.
• The rights and responsibilities of the partners — the partnership deed outlines all of the partners’ rights as well as their specific responsibilities.
• Settlement of accounts – if the firm dissolves, the partnership agreement also contains the settlement of accounts.

Features And Benefits That Explain Partnership Deed

Here are some distinctive features of a partnership deed that you should know:

1. Partnership businesses must have at least two members. The rights, responsibilities, and liabilities of each partner must be mentioned in the registered partnership deed to avoid litigation in the case of future disputes.
2. Partners must come to a mutual decision before starting the firm. The ratio of the distribution of profit and loss incurred by the organization must be mentioned in the partnership deed to simplify the financial process. 
3. There’s no minimum and maximum limit on the capital invested by each partner of the firm. A partnership deed keeps a check on the salary, commission, and interest rate on the capital earned by each partner.

Making partnerships a piece of cake: Understanding the importance of a partnership deed

Starting a business with partners is an exciting venture, but without a proper partnership deed, it could quickly turn into a recipe for disaster. A partnership deed is a written agreement that outlines the terms and conditions of the partnership, including the rights and responsibilities of each partner. It’s an essential tool for avoiding misunderstandings and settling disputes down the road.

The must-have ingredients of a mouth-watering partnership deed

Just like a cake recipe, a partnership deed has specific benefits of partnership deed that are critical to the success of the partnership. These ingredients include:

• Names and addresses of the partners
• Nature of the business
• Percentage of profit/loss sharing
• Roles and responsibilities of each partner
• Capital contribution of each partner
• Procedure for admission of new partners
• Dissolution of the partnership
• Dispute resolution procedures

What are the characteristics of partnership deed?

A well-crafted partnership deed should also include provisions for profit sharing, decision-making processes, and dispute resolution. It’s crucial to carefully consider the features of partnership deed to ensure a smooth partnership. Here are some key aspects to consider when drafting a partnership deed:

1. Profit Sharing: The partnership deed should clearly specify how profits and losses will be shared between partners. This could be based on a pre-agreed percentage or on the amount of capital each partner has invested in the business.
2. Decision-Making Processes: The partnership deed should outline how decisions will be made in the business. This could include a simple majority vote or a more complex decision-making process that involves all partners.
3. Dispute Resolution: Disputes are inevitable in any business partnership. A partnership deed should include provisions for how disputes will be resolved in a fair and efficient manner. This could involve mediation, arbitration, or even legal proceedings.
4. Duration of Partnership: The partnership deed should specify the duration of the partnership. This could be an open-ended arrangement or a fixed-term partnership with a specific end date.
5. Roles and Responsibilities: The partnership deed should outline the roles and responsibilities of each partner. This could include specific tasks or responsibilities that each partner has agreed to undertake.
6. Termination of Partnership: The partnership deed should specify the circumstances under which the partnership can be terminated, and what will happen to the business assets and liabilities in the event of termination.

NoBroker’s home loan services can help provide the necessary funding for your business venture. To learn more about partnership deeds and their contents, get in touch with NoBroker’s legal experts for a free consultation.

What are the top considerations when starting a project on partnership deed

When embarking on a new business partnership, it’s essential to take the time to “project on partnership deed.” A well-thought-out partnership deed can help ensure the success of the partnership and minimize the risk of conflict. Here are the top considerations to keep in mind when “projecting on partnership deed” and starting a new business partnership:

1. Define the Business Purpose: Clearly define the purpose of the partnership, including the products and services to be offered and the target market. This will help both partners understand their roles and responsibilities and ensure everyone is on the same page.
2. Distribution of Profits and Losses: Decide how profits and losses will be distributed among the partners. This can include a profit-sharing agreement, a salary for each partner, or a combination of both.
3. Decision-Making Authority: Determine who has the final say in important business decisions. This could be one partner, a majority vote among partners, or a specific decision-making process agreed upon by all partners.
4. Duration of the Partnership: Specify the length of the partnership. This can be an indefinite partnership or a partnership with a set end date.
5. Dispute Resolution: Establish a process for resolving disputes between partners. This can include mediation, arbitration, or legal action.
6. Partnership Termination: Define the circumstances under which the partnership can be terminated, such as the death or resignation of a partner, or a disagreement between partners.
7. Capital Contributions: Specify the amount of capital each partner will contribute to the partnership and the conditions under which additional capital can be contributed.
8. Partner Responsibilities: Clearly outline the responsibilities of each partner, including the tasks they will be responsible for and the amount of time they will spend on the partnership.
9. Record Keeping: Establish a system for keeping records of the partnership’s finances, including receipts, invoices, and bank statements.

Regular Review: Schedule regular reviews of the partnership deed to ensure that it still meets the needs of the partnership and to make any necessary changes.

Documents Required to Form a Partnership 

It is mandatory to have two or more willing individuals form a partnership. The Partnership Act, 1932, regulates all partnership registrations. Documents required to form a partnership –

• PAN Card of all the partners
• Address proof of all the partners like Aadhar Card, Voter ID, Driving Licence, etc.
• PAN of the firm
• Address proof of the firm

An official authority must sign the documents required to register a partnership deed between two partners. 

Procedure To Register a Partnership Firm in India

Indian Partnership Act, 1932 is the official Act according to which partnerships are governed. It is entirely up to partners to decide if they want to get their firm registered or not. If they do not register, they won’t be allowed the benefits of a registered partnership firm. The registration process can happen anytime from the start of the business. However, your firm must be registered by law if a legal dispute before the court case is filed. 

For registration of a partnership firm, submit an application and prescribed fees to the Registrar of Firms of the respective state in which the business is operable. You must also include the following documents – 

1. Registration of Partnership Application in Form No. 1
2. Affidavit duly filled and signed
3. The original copy of the partnership deed
4. Ownership proof of the business space or the rental/lease agreement

All partners must sign the submitted application. After checking the contents of the partnership deed that explain the intention of the business firm, the Registrar of Firms will record an entry in the Register of Firms and issue the Certificate of Registration. 

It is also compulsory for all firms to register themselves with the Income Tax Department and receive a PAN Card for official purposes. After the PAN Card is issued, the firm can open a current account in any bank and handle all financial transactions through it. 

Benefits Of Registering a Partnership Firm in India

Here are the benefits of a partnership deed in India

1. Partners of a registered firm are free to file a case against a 3rd party in dispute cases. For example – If the 3rd party claimed goods but is refusing to make payment. However, unregistered firms do not hold that right. 3rd parties can file the case against business partners regardless of the registration status of the firm.
2. If there is an internal conflict between the partners, a registered firm has the freedom to approach the court of law to let them handle the dispute. This could include situations like one partner cheating the other one out of profit or making sole decisions. 
3. Registered firms have the power to claim set-off. If a 3rd party claims that the firm owes them some money, the firm is allowed to state if the 3rd party also owes them some money in return. 
4. Registered firms carry higher credibility than unregistered firms. 

Types of Partnership 

Even though the definition of a partnership deed remains the same, it can be written for three types of partnership. 

1. General Partnership – Governed under The Partnership Act, 1932, the general partnership involves two or more partners who carry equal responsibilities and rights with unlimited liability. 

2. Limited partnership – Also governed under The Partnership Act, 1932, limited partnership means that one partner has unlimited liability while the other has limited liability. Partner with limited liability cannot partake in the firm’s day-to-day decisions and has limited control access. 

3. Limited Liability partnership – Governed according to The Liability Act, 2008, LLP means that each partner holds limited liability that is decided according to the extent of their investment in the firm.

What Happens in the Absence of a Partnership Deed?

If the business partners fail to sign a partnership deed, it means that – 

• Partners are liable to share the profits and losses regardless of the conditions equally.
• Partners do not get a fixed salary at regular intervals.
• Interest earned on the invested capital is not payable.
• In case of mutual consent, partners will get 6% per annum interest on the loans to the firm.
• Drawings made by any partner will not be charged with interest.

Partnership Deed Format

After proprietorship, the partnership is the 2nd most preferred way to run a business. People with different talents and capabilities come together and try to form a business organization that can benefit all partners in the long run. Even though there are numerous benefits of starting a business in partnership with someone, the risk of internal conflict always remains. People often find that they are wary of investing all their savings, time, and effort into a business venture that their partner at any time can exploit. To ensure that such situations do not arise, a partnership deed is signed by all partners along with official authority. A partnership deed, also meaning partnership agreement, is an official document formed to preserve the rights and interests of all partners involved in the business firm. Now that you are one step closer to starting your business, it is time to find the best space!

Get a free consultation from NoBroker’s legal experts

Taking the time to consider these key elements will help ensure the success of your partnership and minimize the risk of conflict. A well-written partnership deed is essential to the success of any business partnership. And, when you’re ready to take the next step and secure funding for your partnership, consider a home loan from NoBroker. Our experts can guide you through the process and help you get the funding you need to grow your business.

At NoBroker, we understand the importance of a solid partnership deed. That’s why we offer free legal consultations to help you craft the perfect partnership deed for your business. Don’t let a lack of knowledge hold you back from making your partnership a sweet success. Reach out to us today!

FAQ’s

Conveyance Deed: Meaning, Importance, Format & More

Conveyance simply means transferring or transporting something from one place to another. In law terms, conveyance means the process of transferring property, assets, title, rights, ownership, etc. from one person to another. If you are purchasing or selling a property, then you must have a deed or contract to do so. A sale is not complete without a valid contract, which is a Conveyance deed. This is required for transferring all property rights to the legal owner.

What is a Conveyance Deed and Why is It Important?

A conveyance deed is the transfer of property rights, titles, and ownership from one person to another, not necessarily always for consideration.

A conveyance deed is necessary to make sure that the buyer, who buys the property has all the right over it and can hold, or sell it on his or her wish. The seller transfers all the legal rights of the property (movable or immovable) to the name of the buyer after signing the conveyance deed for a valid monetary consideration.

What happens if the sale happens without a conveyance deed?

If there is no proper conveyance deed, the buyer will not have any legal right against the property. He cannot claim his ownership. Hence, a conveyance deed is a must for any sale.

Sale Deed vs. Conveyance Deed

A Conveyance deed is often confused with a sale deed. Every sale deed is a conveyance deed, but not all conveyance deeds are a sale deed. This is because a conveyance deed includes gifts, mortgages, exchanges, etc.

A sale is when the seller sells the property to the buyer in exchange for consideration.

What Does It Include?

• The actual markings of the land or property
• Any other rights appended to the property and its use
• All the title owner’s names till the present-day seller
• State of delivery of the property to the buyer
• A memo to declare the consideration received, whether monetary or non-monetary
• Terms and conditions while buying the property for transferring full rights
• Signatures from both the parties

Points to be Noted Before Signing It

• The seller must certify with an encumbrance certificate the property is free from any encumbrance
• The property should not have any open mortgages. In other words, the seller must clear the mortgages on the property or should transfer that to the name of the buyer while signing it. This can be checked at the sub-registrar office
• The dates should be mentioned clearly on when the property will be transferred from the seller’s name to the buyer’s name
• This deed must be signed by at least two witnesses

Conveyance Deed – Procedure

• It will be written on stamp paper
• This document will be presented at the local sub-registrar’s office
• The registrar verifies the deed and approves for registration
• After approval, stamp duty and registration charges must be paid and the conveyance deed will be ready

What are the Charges for the Conveyance Deed?

The charges and the expenses incurred while creating this deed depend on the duties implied by the government. The stamp duties and the registration charges vary from one state to another state.

Documents Required for the Conveyance Deed

Below is the list of documents that are required to create this deed:

• Sale agreement: The seller agrees with the buyer promising to sell the property along with the price terms. This document must be provided while making the deed
• Mutation entries: These are the entries that are present in revenue records that indicate the transfer of ownership of a property. This is also known as a property card
• Location plan
• A survey plan for the property from the revenue department
• Along with the survey plan, include a layout plot plan which is approved by the local authority
• Architecture certificate
• Urban Ceiling Act certification
• The building or structure plan must be approved by the appropriate authority
• Certificate of commencement
• OC or occupancy certificate (if applicable)
• The document that proves the payment of stamp duty
• Proof of registration
• Drafted conveyance deed

Types of Conveyance Deed

• On freehold property: This is a deed where the buyer gets the full authority to enjoy the property. The property will be converted into a freehold and the owner gets the complete right over the property. The conveyance deed will be the final document given to the buyer.
• On leasehold property: The leasehold ownership is given to the owner who has the right only to the built house, meaning the walls constructed on the property and not the land ownership. The landlord will be the owner of the common areas and structures built.
• On the subject to the mortgage: If the property is subject to the mortgage, the buyer can enter the property from time to time and enjoy the building and its premises.
• Relinquishment deed: This form of deed is created at the time of transferring or releasing the rights, titles, or interests of one person in favour of other legal heirs. This usually occurs when the transfer of property happens with common property.
• Gift deed: If the property is gifted by the grantor to the grantee, it is known as a gift deed.

Sample Conveyance Deed

This conveyance made on ………… day of ………… between Mr. ‘X’ hereinafter called as “The Vendor” (which expression shall unless excluded by repugnant to the context be deemed to include his successors in office and assigns) of the one part and Shri/ Smt. / Kumari/ daughter/ wife/ widow of Shri ………… …………. A resident of ………… ………… ………… through his or her attorney Shri/ Smt. / Kumari/ daughter/ wife/ widow of Shri ………… ………….

………… ………… ………… hereinafter called the “Allottee” (which expression shall unless excluded by repugnant to the context be deemed to include his successors in office and assigns) of the second part and Shri/ Smt. / Kumari/ daughter/ wife/ widow of Shri ………… …………. A resident of ………… ………… ………… hereinafter called “The Purchaser” (which expression shall unless excluded by repugnant to the context be deemed to include his successors in office and assigns) of the third party.

WHEREAS the Allottee is a member of the Co-Operative Society which was allotted land measuring ………… sq. mts at ………… ………… vide lease deed dated ……… ……… ……… and registered with Sub-Registrar of Delhi as document no. ……… in book no. ……… volume no. ……… at pages ……… to ……….

WHEREAS vide Allotment letter No. ……… dated ……… Flat No. ………. Block No. ……… situated at ……… ……… ………  (Full particulars of the property may kindly be mentioned here) was allotted to the side allottee herein, subject to the limitation, terms and conditions mentioned therein.

AND WHEREAS the allottee had given the possession Shri/ Smt. / Kumari/ daughter/ wife/ widow of Shri ……….. A resident of ……… ……… ……… has executed the power of attorney on ……… appointing Shri/ Smt. / Kumari/ daughter/ wife/ widow of Shri ………. A resident of ……… ……… ……… as his or her attorney authorizing him or her to sell the property on his or her behalf.

AND WHEREAS representing that the said allotment is still valid and subsisting the said allottee has applied to the vendor through his attorney for grant of revisionary interest of the vendor in the land underneath the flat allotted or leased or conveyed to him or her in favour of the purchaser and the vendor has agreed to convey the revisionary interest in the land underneath the demised property to the purchaser subject to the terms and conditions appearing hereinafter.

Who prepares a conveyance deed?

The conveyance deed meaning, as stated in the article, is legal paperwork of a buyer’s power and ownership transfer. The government has stepped in to make sure that this is a legal transaction. The presence of a lawyer and, in some situations, a real estate agent is required to facilitate this procedure. They allow the two parties to draw the deed in an orderly manner. Their assistance is frequently necessary since they are familiar with the legalities and are aware of the needs. The government receives money or revenue through the stamp duty that is required for this conveyance deed’s charges (registration).

What if the conveyance deed is lost?

If the banker’s negligence causes the transfer deed to be lost, the following procedures must be taken:

• The property owner should file a police report as soon as possible. Keep a copy of the first information report (FIR) on hand in case a potential buyer requests it at the time of sale.
• You can place an ad in the newspaper stating that the transfer deed paperwork has been lost. You may have to wait up to 15 days to find out if someone finds and returns the documents within that time frame.
• You can write an affidavit and have it notarized. It should include all property information, FIR information, and data about the notified newspaper ad.
• The sub-office registrar’s where the property was registered can provide you with a legally certified copy of the conveyance deed. You must pay the indicated fees and submit the required documentation.

Deemed conveyance deed

Even though the developer has not executed the transfer deed, the law considers it to be executed until the state government releases a considered conveyance deed or a deed of conveyance. To get a presumed deemed conveyance meaning, one must submit an application to the appropriate authorities along with the requisite documentation. The developer should also make sure that both parties are present, as the authority law will only make a decision when both parties have been heard.

The documents needed to apply for a presumed conveyance deed are as follows:

• Land documents that are relevant, such as land revenue, municipal records, and the like
• A document of the development agreement between the landlord and the developer for a property
• Each flat has a registered and stamped agreement copy.
• Copy of the approved building plan

Conditions for a deemed conveyance

The following are the requirements for obtaining a presumed conveyance deed format. The listed points are in accordance with conveyance meaning –

• At least 60% of the total number of flats in the building should be sold.
• Before applying for a presumed conveyance, the apartment owners should have formed a cooperative organisation for at least 3-to 4 months.
• Where the builder has either promised or failed to produce a complete conveyance deed, there should be clear communication between this cooperative organisation and the builder.
• Before applying for a presumed conveyance deed, a resolution should be passed on the subject.

The Latest News on Conveyance Deeds

In Pune, there was a conveyance drive till January 31, 2021. In this drive, the Co-Operation department conducts surveys of societies that do not have a conveyance deed.  Maharashtra government brought the concept of deemed conveyance to bypass the builder who fails to execute the conveyance deed and get the deed directly from the registrar.

Anil Kawade, registrar of co-operative societies and commissioner of co-operation has confirmed on launching of a website that boosts the process of executing the conveyance deed for the registered societies. This website will be helping in tracking the applications for registration, and revenue and the department can ease the process. This website is set to be launched in two months.

In New Delhi, Delhi Authority organized meetings and awareness camps with Resident Welfare Associations (RAWs) for the unauthorized colony residents to help them get their ownership.

Nagrik Suvidha Kendra (NSK) has been reopened in New Delhi to help the people of Delhi to receive conveyance deeds for their properties with the Delhi Development Authority (DDA). NSK’s headquarters is Vikas Sadan, INA.

A conveyance deed is a crucial part of any sale, lease, or gift transfer of property. If this deed is not done, or if it is not registered, there are chances of losing the property. Hence, make sure to have your conveyance deed registered.

When it comes to legal issues and paperwork, you need to be extremely careful, even the slightest mistake could mean a huge loss. The best way to avoid such mistakes is to get a team of professionals to assist you. At NoBroker, our experts will guide you and ensure your paperwork is perfect. Click the link below to know more about NoBroker Legal services. You can even drop us a comment below with any questions, and we’ll be happy to help.

Frequently Asked Questions (FAQs)

Property Gift Deed in India: Stamp Duty, Format, Rules & Relation

There is nothing better than getting a gift, and there is also joy in giving. No matter how big or small the gift is, the sentiment is the same. When you are gifting something as large as property or a house, however, there are certain steps that should be followed, this is done so that the new owner has clear titles and documentation of the property and how they came to own it. Gift deeds have no become increasingly popular because of the governmental documentation that comes along with it.

Gift Deed meaning and why you need to know about it?

When it comes to the Transfer of Property Act, the Gift Deed is the unsung hero of the real estate world. It may not have the fanfare of a property purchase or sale agreement, but it sure plays a big role in transferring ownership of a property. So, buckle up and let’s dive into the world of Gift Deeds!

What exactly is a Gift Deed?

A Gift Deed is a legal document that is used to transfer ownership of a property from one person to another as a gift. It’s a simple yet powerful way to show your love and appreciation for someone by giving them a gift that they can cherish for a lifetime.

How is it different from Sale or Purchase Agreement?

Well, unlike a Sale or Purchase Agreement, a Gift Deed doesn’t involve any exchange of money. It’s a pure act of love and generosity from one person to another. It’s also different from a Will as it doesn’t come into effect after the donor’s death, it transfers the ownership of the property immediately.

How to get a Gift Deed done?

Getting a Gift Deed done is a simple process, just follow these steps:

• Choose the right stamp paper value as per the market rate (Source: Legal Desk)
• Fill out the Gift Deed form with all the relevant details
• Get it signed by the donor and two witnesses
• Get the Gift Deed registered at the Sub-Registrar’s office
• Breathe a sigh of relief, you’ve successfully transferred ownership of the property!

Is a Gift Deed valid forever?

The validity of gift deed depends on various factors such as the age of the donor, the relationship between the donor and recipient, and whether it’s executed properly. However, it’s a legally binding document and holds up in a court of law if challenged.

If you’re looking to transfer ownership of a property as a gift, NoBroker can assist you with all the legal formalities involved in the process. From getting the right stamp paper value to getting the Gift Deed registered, we’ve got you covered!

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A gift has to meet certain criteria –

• It has to be tangible
• It has to be well defined existing movable or immovable property
• It has to exist in the present and can’t be a future property
• It has to be transferable

Gift Deed vs Will

A will and Gift deed are two different legal instruments. 

A will is a document empowered by the law of succession, which comes into power only after the death of the testator. It can be revoked many times, and need not be registered.

Meanwhile, a gift deed comes under the ambit of Income tax and cannot be revoked, unless under some specific circumstances. A gift deed of property must be registered under section 123 of the Transfer of Property Act 1882 and Section 17 of the Registration act of 1908.

A will is comparatively cheaper because for a registered gift deed you will have to pay stamp duty and registration charges.

Drafting a Gift Deed – format for Gift Deed

Like any legal document, the Gift Deed also needs to follow a certain format and meet certain requirements to be considered valid. This is why the best policy to follow is to have a lawyer assist you in drafting a gift deed. The deed must state-

• What is being gifted and from whom to whom as well as their relationship whether gift deed in blood relation or not.
• It should look like a contract between donor and donee where there is free and open giving and receiving of the gift.
• It should state that the donor is giving the gift out of free will and not being forced, it should also state that there is no exchange of money in return for the gift.
• The Gift Deed should also mention that the donor is not bankrupt and should be above 18 years of age.
• It should mention the date and location where the registration will take place.

Accepting a Gift Deed:

This is as important as giving the gift, the donee or receiver of the gift must accept it by signing the Gift Deed. There can’t be much delay as the gift and the Gift Deed is considered invalid if the donor dies before the donee accepts the gift.

Registering a Gift Deed or Requirements for Gift Deed:

In accordance with Section 123 in The Representation of the People Act, 1951, the gift cannot be passed on to the receiver unless and until it is registered. What you should keep in mind while registration –

• The cost of registration is calculated based on the value of the gift
• The Deed must be signed by the donor
• The Deed should have two witnesses and it has to be attested by both of them
• The donor and donee must be present in the office of the Registrar
• Valid Identification documents (passport, driving license etc.) and PAN card must be submitted to the Registrar
• Stamp duty and Transfer Duty must be paid

What’s the format of a Gift Deed?

The format of a Gift Deed is pretty standard, it includes details such as the names and addresses of the donor and the recipient, description of the property being gifted, the date of the Gift Deed, and signatures of the donor and two witnesses. (Source: Ministry of Law and Justice)

NRI Gift Deed Format

The NRI Gift Deed format is as follows:

KNOW ALL MEN BY THESE PRESENTS that I, _____________ S/o Sh.___________ r/o _______________, transfers voluntarily, the property bearing no.___________ situated at _______________ (more particularly described in the schedule annexed hereto), the estimated value of which is Rs._____________ (Rupees_____________ only) to my daughter Smt.____________ w/o of Sh._________________ (hereinafter referred to as “the donee”) To Hold the same to the donee absolutely forever. I further declare that the said gift has been made by me out of my natural love and affection for the donee and the same has been accepted by the donee.

IN WITNESS WHEREOF, I have executed this deed this ________ day of __________.

Witness:

1.

2.

DONOR

I, Smt. ______________, the donee hereby accept the gift of the said property.

DONEE

Common questions about the Gift Deed:

Who is eligible for a gift deed?

You can gift anyone. While minors can’t be a donor, they can be a done, they are able to receive the gift if they have a guardian who will accept the gift on their behalf. Once the minor becomes an adult, they can either accept the gift or return it.

Read: Everything You Need to Know About Conveyance Deed

Who can create a Gift Deed?

Anyone can create a Gift Deed, as long as they are not minors or are being forced to create one. You must also have valid identification proofs like Adhar, passport etc.

What documents are needed to create a gift deed?

For a Gift Deed to be valid it needs to be registered, for registration, you will need to hand over documents like passport, PAN, driving license etc. to the Registrar.

Is stamp duty payable on gifted property?

Yes, you must pay stamp duty and transfer duty on the deed of gift property. The cost of Stamp duty will vary in each state.

Is there a Tax levied on Gift Deed?

There is no tax on Gift Deeds in the hands of the done as per the Income Tax Act if they are close relatives (mother and daughter etc.). If the done is not a close relative, then there will be a tax levied if the total of all the gifts is valued at more than Rs.50,000.  If it is more than this amount, it will be taxable without any threshold exemption.

If you are a close relative receiving the gift, then the first time you will pay tax is when you sell the property. This will be counted as short term (less than 36 months) or long-term gains. If it is a short term, you will pay tax as per the bracket it falls under; if it is long term you will have to pay 20% tax. If you don’t wish to do so, you can invest this money by buying residential property or capital gains bonds of Rural Electrification Corporation (REC) or the National Highway Authority of India (NHAI).

Read: Here’s Why Sale Deed Is So Important

Important clauses in a Gift Deed

• It should be stated explicitly in the Gift Deed format in word that the donation is made out of love and affection and that no money or other kind of payment is involved. It makes no difference how tiny the payment is; it is not considered a gift.
• The property you want to give away must be in your possession, which means you must own the title to it. When giving a gift, the property must already exist; you cannot give something that you may acquire in the future.
• Any form of coercion, undue persuasion, intimidation, or fear should be avoided during the transfer. The gift should express unequivocally that the transfer is voluntary and that the transferor intends to do so.
• It is necessary to provide a full description of the property. It should include information on the structure, address, colour, area, and location, among other things. These are the requirements expected by the property gift deed rules.
• Whether the donor and donee are blood relatives or not, the link between them is crucial. Some state governments also give stamp duty exemptions for presents presented to blood relatives. Please note that this is different from the gift tax exemption in blood relations.If the gift comes with any additional rights or obligations, this condition must be indicated. For example, any rights to a subsequent sale or lease of the property of the exchange deed. Also, gift deed property can be sold without any conditions attached. 
• The Gift Deed is inextricably linked to a clear declaration of Donee rights. It comprises the rights to peacefully enjoy the property, to make changes to the property, to receive rents, and to profit from the property.
• A delivery clause refers to the action (express or implicit) that confirms the delivery of property possession.
• Although not required, it is recommended. It will aid in the prevention of future issues. It must be stated explicitly, not implied. This clause must be agreed upon by both the donor and the donee. Make sure you have a proper gift deed registration.

Who can be a donor/donee?

A person who transfers immovable property is known as a donor. A donor can be someone who is of sound mind and capable of agreeing. A minor cannot donate since he or she is unable to engage in a contract.

A donee is someone who accepts a gift or transfer that has been offered to him. A minor can be a donee, but the gift must be accepted on behalf of the donee by the donee’s guardian. In the case of an onerous present (one that comes with strings attached), a minor can either accept or return the gift after reaching adulthood.

Documents required for Gift Deed registrations

After you’ve double-checked that your Gift Deed is completed, and witnessed you’ve paid the stamp duty and registration fees required by your state. You’ll also need a few extra documents, such as —

• PAN Card  
• Aadhar Card 
• Original Gift Deed 
• ID Proofs, such as Driver’s Licence, Passport, etc.
• A document such as a sale deed establishes the donor’s ownership of the property.
• Other property-related agreements that you may have entered into

The list is not exhaustive; depending on your state, you may require additional documents such as certificates relating to the value of your property. If the gift comes with any additional rights or obligations, this condition must be indicated. For example, any rights to a subsequent sale or lease of the property.

What type of properties can be gifted?

Gift deed rules in India state that particular types of property can be gifted. They are listed below –

• A movable or immovable property
• A transferable property
• An existing property
• A tangible property

The Gift Deed has various advantages that can be attributed to it. Gifts are advantageous since they are made within the donor’s lifetime. If you want someone special to look after your possessions or if you need to aid someone, you can transfer your property as a gift. Also, if there is a good probability that legal issues could arise in the future, some people would create a Gift Deed to avoid such disputes.

The gift deed of immovable property formats for from father to son, gift deed blood relation format, and more etc. are all available online. 

Can a Gift Deed be revoked/cancelled?

It is impossible to rescind a donation that has been made and registered per the law. After it has been approved, it becomes the property of the donee. The giver cannot cancel the deed on his or her own. A legal Gift Deed is also one in which the parties have agreed that the deed will be revocable in part or whole by the donor’s will.

There are some circumstances in which gifts can be cancelled under Section 126 of the Transfer of Property Act, 1882. The cancellation of the Gift Deed is included in the revocation, and the donor retains control of the property. The terrain is –

• If the donor and donee agree that the gift will be withdrawn if certain specified events occur or do not occur, the gift will be cancelled. The important thing to remember here is that the donor should not have any control over the occurrence of such an incident. In provisions of the Gift Deed, both parties must have agreed to such a condition.
• The terms should not be immoral, illegal, or repugnant in the eyes of the property.

So, if the donation was made with the foregoing grounds in mind, it can be cancelled. If the donor passes away, his heirs have the right to have the deed revoked.

What are the gift deed clauses and what is included in them?

A Gift Deed can have various clauses, but some of the common ones include:

• Clause specifying the description of the property being gifted
• Clause specifying that the gift is made out of love and affection and not under any coercion or undue influence
• Clause specifying that the recipient accepts the gift voluntarily and without any obligation
• Clause specifying that the donor has full rights to transfer the property and it’s not encumbered in any way

What are the tax implications of gifting a property?

Section 56(2)(x) of the Income Tax Act of 1961 states that if a person gets an amount of money without consideration over fifty thousand rupees after April 1, 2017, the entire sum is taxed under the heading “Income from other sources.” The following individuals are exempt from the provisions of the clause:-

• from any family member; or
• on the occasion of the individual’s marriage; or
• as a result of a will or inheritance; or
• in anticipation of the payer’s or donor’s death, as the case may be; or from any municipal government
• any trust or institution referred to in clause (23C) of section 10; or any fund, foundation, university, or other educational institution, hospital, or other medical institution, or any trust or institution referred to in clause (23C) of section 10; or
• from or on behalf of any trust or institution that has been registered under sections 12A or 12AA; or
• sub-clause (iv), sub-clause (v), sub-clause (vi), or sub-clause (via) of clause (23C) of section 10; or by any fund, trust, or institution, or any university or other educational institution, or any hospital or other medical institution referred to in sub-clause (iv), sub-clause (v), sub-clause (vi), or sub-clause (via) of clause (23C) of section 10; or

Stamp duty on gift deed in Delhi in blood relation

The following are important considerations to remember when registering a gift deed in Delhi:

• If the donee is a woman, stamp duty is 4%; if the donee is a man, stamp duty is 6%. Even if the gift is made to a family member such as a son, daughter, wife, husband, sister, brother, or other relatives, this tax must be paid.
• The registration fee is 1% of the entire Consideration value, plus Rs. 100/- for pasting costs.
• At the time of presentation, both the donor and the recipient must be present in the registrar’s office, together with identity documents such as a PAN card, an election card, a passport, a driving licence, and so on.
• During the Presentation before the Sub Registrar for the Registration of Gift Deed, two witnesses must be present, as well as identity documents.

Gift deed registration fees

State	Stamp duty for gift deed
Delhi	Women: 4%Men: 6%
Gujarat	4.9% of the market value
Karnataka	Family members: ₹1,000- 5,000Non-family: 5.6% of the land value
Maharashtra	Family members: 3%Other relatives: 5%Agricultural land/ residential property: ₹200
Punjab	Family members: NILNon-family: 6%
Rajasthan	Women: 4% and 3%Men: 5%SC/ST or BPL: 3%Widow: NoneTo wife: 1%Immediate family: 2.5%
Tamil Nadu	Family members: 1%Non-family: 7%
Uttar Pradesh	Men: 7%Women: 6%
West Bengal	Family members: 0.5%Non-family: 6%Above ₹40 lakh: Surcharge of 1%

Can a Gift Deed be cancelled or changed?

Once the Gift Deed is registered and executed, it cannot be revoked or altered. This is unless the donor has made a provision to do so. It can also be revoked if the donor and do agree on certain terms that allow the Deed to be revoked. At times, the donor might also mention that the property or house will be given back to his(donor’s) family upon the death of the done.

Gift deeds not only fulfil their purpose of a gift but are also well documented. If you have more questions or are looking for assistance related to Gift Deeds, feel free to drop us a message. NoBroker is here to assist you, you get a home, rental agreement, legal assistance, loan assistance and a lot more.

A comprehensive guide to Gift Deed and why NoBroker is your best bet for real estate

A Gift Deed may seem like a small and simple document, but it packs a punch when it comes to transferring ownership of a property. So, make sure you have all your ducks in a row, choose the right gift deed stamp paper, fill out the form correctly, get it signed and registered, and voila! You’re done! And don’t forget to use NoBroker for all your real estate needs.

Understanding Lease Deed: A Guide for Landlords and Tenants

Imagine you’re a tenant searching for the perfect apartment, or you’re a landlord looking to rent out your property. In both scenarios, a lease deed becomes a crucial document that solidifies the rental agreement between the two parties.

It provides legal protection, establishes rights and obligations, and ensures a smooth and transparent leasing experience for everyone involved. Whether it’s a residential, commercial, or industrial property, understanding the ins and outs of a lease deed is essential to safeguarding your interests and maintaining a harmonious landlord-tenant relationship. 

In this blog, we will explore the significance of lease deeds, examine their essential components, and offer insights to help you navigate the world of leasing with confidence.

What is a Lease Deed?

A lease deed, also known as a “deed of lease agreement,” is a legally binding document that formalizes the rental arrangement between a landlord (lessor) and a tenant (lessee). It outlines the terms, conditions, and rights of both parties regarding the leasing of a property. 

The lease deed specifies important details such as the duration of the lease, rent amount, payment terms, maintenance responsibilities, and any additional clauses or provisions agreed upon by both parties.

Understanding key terminologies is essential when dealing with a lease deed. Familiarize yourself with these terms:

• Lessor – The Lessor is the legal owner of the property that is the subject of the lease.
• Lessee- The Lessee is the individual who acquires the rights to use and enjoy the property under lease from the Lessor.
• Duration- The time or period for which the rights to use and enjoy the property are given is referred to as the duration. The lease can be for a certain period, either explicitly or implicitly, or it can be for an indefinite period.
• Premium or Rent- Generally, it is considered to give the right to use and enjoy the property. Rent is a term used to describe the payment of money or any other valuable items regularly or at given specified times or intervals.

How to create a lease deed?

Creating a lease deed in India involves a legally binding agreement between a lessor (landlord) and a lessee (tenant) for the lease of a property. Here’s a general outline of the process to create a lease deed:

Stages In the Creation of a Lease Deed

Extensively there are three types of lease deeds- a registered lease deed, an unregistered lease deed, and a perpetual lease deed. Each of the steps involved in completing the Lease Deed can be divided into the following categories:

1.  Negotiation Stage

The negotiation stage is the first step of the transaction, and it takes effect immediately after the Lessee has selected a property that is appropriate for his purposes. Each of the parties involved will need to address the many business elements of the transaction, including the length of the lease, the amount of consideration, the method of payment, and other related issues. It is more important to concentrate on the business elements of the transaction at this point than the legal ones. 

2. Preliminary Documentation Stage

Once the commercial aspects of the transaction have been agreed upon, the parties involved can enter into an Agreement to Lease or, preferably, a Memorandum of Understanding, which will record the commercial aspects of the transaction and the general duties and obligations of the respective parties.

3. Title Investigation or Due Diligence Stage

The purpose of this stage is to determine whether or not the Lessor has legal title to the property and whether or not the Lessor has the power to diminish the property in the Lessee’s favour via the execution of the lease contract.

A comprehensive examination of the title deeds is followed by confirmation with government records via a Title Search at the appropriate agency and, ultimately, the publication of Public Notices inviting objections.

4. Drafting Payments

This step entails the payment of the premium by the Lessee to the Lessor, and it is also known as the execution and registration stage. They have the option to pay the discussed amount of money, take possession of the property, and sign the Lease Deed all at the same time. 

Even though it is not required, it is common practice for two witnesses to execute the Lease Deed to sign and date the document. As soon as the document has been signed, it can be submitted for registration at the Office of the relevant Sub-Registrar of Assurances, who has authority over the property in question. 

5. Registration Stage

Immediately after the lease deed has been registered and the property has been transferred to the Lessee’s possession, it is recommended that the different governmental and semi-governmental organizations with jurisdiction over the property be informed in writing of the transfer of ownership. This would guarantee a seamless transition and make the process of submitting applications and obtaining licenses reasonably straightforward.

Lease Deed Format

By creating a lease deed, both landlord and the tenant can ensure clarity, transparency, and protection of their rights and obligations during the lease term. The lease deed provides a comprehensive record of the agreement, covering essential details and terms agreed upon by the lessor and lessee.

Download: You can download the sample sale deed format in Word document by clicking the following link:

[Lease Deed Format for Residential Property]

Stamp Duty on Lease Deed 

Stamp duty is imposed by the Indian government and it applies to various legal documents, including lease deeds. The exact amount of stamp duty to be paid is determined by factors such as the value of the property being leased and the state in which the property is located. 

In India, the Indian Stamp Act of 1899 governs the stamp duty on lease deeds and provides specific rates for different types of lease agreements.

State	Residential	Commercial
Andhra Pradesh	6%	8%
Assam	6%	8%
Bihar	6%	8%
Chhattisgarh	6%	8%
Delhi	5%	8%
Goa	5%	6%
Gujarat	6%	8%
Haryana	7%	12%
Himachal Pradesh	7%	10%
Jammu and Kashmir	6%	8%
Jharkhand	6%	8%
Karnataka	5%	7%
Kerala	8%	12%
Maharashtra	5% (male)  6% (female)	0.25% (up to 5 years)1% (5-10 years)2% (above 10 years)
Manipur	6%	8%
Madhya Pradesh	7.5%	11%
Meghalaya	6%	8%
Mizoram	6%	8%
Nagaland	6%	8%
Odisha	6%	8%
Punjab	6%	8%
Rajasthan	6%	8%
Tamil Nadu	7%	10%
Telangana	5%	7%
Tripura	5%	7%
Uttar Pradesh	6%	8%
Uttarakhand	6%	8%

Key Considerations for Creating a Legally Binding Lease Deed

• A lease creates a separation of ownership and control, where the Lessor retains ownership rights but excludes themselves from enjoying possession during the lease period.
• Commercial property leases often utilize a lease deed format to document the agreement, which must be jointly signed by the Lessor and Lessee to express consent to the lease conditions.
• The lease deed serves as a legally binding document that courts may refer to as evidence in case of disputes between the Lessor and Lessee.
• In India, lease deeds must be printed on Non-Judicial Stamp Paper to be legally binding, with specific formats for different types of properties such as shops, houses, commercial properties, agricultural lands, and residential properties.
• The stamp duty value or cost of the stamp paper for the lease agreement is determined by the state and the rent amount specified in the agreement.
• Lease deeds can also be registered with the Sub-Registrar Office having jurisdiction over the leased property. Typically, two copies of the lease deed are executed, with each party retaining an original copy.
• The use of the term “demise” in a lease deed or other lease instruments implies the Lessor’s guarantee of providing peaceful enjoyment of the property to the Lessee.
• The Lessee has the right to remain in possession of the property until the lease is legally terminated through appropriate legal action.

Difference Between Lease Deed and Lease Agreement

A lease deed and a lease agreement are both legal documents that outline the terms and conditions of a rental agreement between a landlord and a tenant. However, there are some key differences between the two documents.

Difference	Lease Deed	Lease Agreement
Definition	A lease deed is a legal document used to transfer ownership rights of a property from the lessor (landlord) to the lessee (tenant) for a specified period. It is a formal and registered document.	A lease agreement is a contract between the lessor (landlord) and the lessee (tenant) outlining the terms and conditions of the lease, but it may or may not be a registered document. It can be a written or oral agreement.
Legal Nature	Lease deeds have a formal and permanent legal status. They must be executed on stamp paper and registered with the appropriate authority to be legally valid and enforceable.	Lease agreements may be formal or informal, and their legal status depends on whether they are in writing, on stamp paper, and registered. Unregistered agreements may have limited enforceability.
Transfer of Rights	A lease deed transfers the ownership rights of the property to the lessee for the agreed lease period. The lessee gains possession and full control of the property during the lease term.	A lease agreement grants the lessee the right to use and occupy the property for a specified period, but the ownership remains with the lessor. The lessee does not have full ownership rights.
Registration	Lease deeds must be registered as per the Indian Registration Act. Registration provides legal validity, prevents disputes, and allows the document to be admissible as evidence in court.	Lease agreements may or may not be registered, depending on the state’s laws. Registration, if done, provides additional legal protection, but unregistered agreements may still be valid to some extent.
Stamp Duty	Lease deeds attract stamp duty, and the amount varies from state to state, based on the property’s location and type of lease (residential, commercial, etc.).	Lease agreements may or may not attract stamp duty, depending on the state’s regulations. Unstamped or inadequately stamped agreements may have limited evidentiary value.
Applicability	Lease deeds are typically used for long-term leases, such as those exceeding 11 months. They provide more security and legal protection for both parties.	Lease agreements are commonly used for short-term leases, such as those for 11 months or less. They offer flexibility and are less cumbersome for shorter durations.
Witness and Attestation	Lease deeds often require witnesses and notarization for additional legal validity.	Lease agreements may or may not require witnesses or notarization, depending on local laws and preferences.
Revocation and Termination	Lease deeds are usually irrevocable during the lease term unless both parties agree to terminate the lease under specific circumstances.	Lease agreements are often revocable or renewable at the end of the agreed-upon lease term, allowing both parties to renegotiate or terminate the agreement.

Is a legal deed registration mandatory?

The Indian Registration Act, of 1908 governs the registration of various types of documents, including deeds, agreements, and other instruments that involve the transfer or creation of rights in immovable property.

The Act specifies that certain types of documents must be compulsorily registered to be valid and legally enforceable. Section 17 of the Registration Act provides an exhaustive list of documents that require mandatory registration, such as:

• Deeds of sale or transfer of immovable property.
• Gift deeds relating to immovable property.
• Lease agreements for terms exceeding one year.
• Mortgage deeds.
• Partition deeds.
• Exchange deeds.
• Power of Attorney relating to the sale or transfer of immovable property.

Note:  the Act mandates registration to provide legal sanctity, authenticity, and public notice to the documents. 

The registration process involves submitting the document to the office of the Sub-Registrar of Assurances or the sub-registrar’s office having jurisdiction over the property. The parties involved in the transaction, such as the buyer and seller, are required to be present during the registration process or may appoint an authorized representative through a Power of Attorney.

How can NoBroker help?

A lease deed must be drafted and scrutinized more thoroughly than a lease or tenancy of residential premises or tenancy because there are various aspects of commercial transactions and commercial use of a property. Drafting a fair lease deed can be confusing! 

That is why you should consult the legal advisors available to you at NoBroker who will guide you through the entire process. If you have any questions, just click on the link below this article and our team will be in touch with you soon.

FAQ’s

Rectification Deed – Rectify Mistakes in Your Sale Deed

During property transactions, paperwork is crucial. However, minor errors like misspelt names, incorrect area measurements, or typographical mistakes in survey numbers can undermine the legal validity of your documents. To rectify these errors promptly, you need a rectification deed—a supplementary document that nullifies mistakes and ensures accurate property records.  

A Rectification Deed, also known as a correction deed, is mentioned in Section 17 of the Indian Registration Act, 1908. With the help of a correction deed, you can correct documentation errors in the existing sale deed, transfer deed or other property-related documents. You can also add important information or delete non-relevant property details with a correction deed. However, the correction of the sale deed cannot be done to change the nature of the transaction or the parties’ original intention. 

Having the correct sale deed details is vital for proving ownership of your property. Read on to know more about how you can rectify these errors.

What is a Rectification Deed?

Property purchase documents contain a lot of crucial details. Therefore, you must correct any minor discrepancies in these details, like spelling mistakes or numerical errors, immediately. The way to do it is by creating a rectification deed. Apart from typing mistakes, the correction of the sale deed may also include the addition of important information or the deletion of irrelevant details.

Also, any correction in the registered sale deed has to be done in the presence of both parties. By both parties, we mean the buyer and the seller. If the previous owner is no more, you can contact the legal heir of the previous owners for rectification. But what if you cannot trace the legal heir? A rectification deed without a seller is possible in those cases. You can apply for correction with subsequent documentation. 

What you need to know about Rectification Deed

Here are some aspects of the rectification deed that you need to keep in mind.

1. The error in the original document must be real and not be done on purpose. Also, the mistake must be a mistake of fact, not a mistake of law.
2. The rectification deed must be registered if the original deed was registered. 
3. Everyone who was a part of the original deal must help get the rectification deed registered.
4. Parties who don’t want a rectification deed to be carried out can ask for help under Section 26 of the Specific Relief Act, 1963.
5. You can’t change the sale deed unless the seller is there and signs it. If he refuses to make the change, you will have to start the legal process.

What kind of Mistakes can be Corrected with a Rectification Deed

The error should be very clearly mentioned while applying for a rectified property document

The rectification deed gives you the power to correct mistakes in the property documents.

This is how you should approach a Rectification Deed

1. The error should be very clearly mentioned while applying for a rectified property document
2. You can only rectify or nullify minor factual errors in your correction deed. 
3. No legal mistakes can be corrected with this deed. 
4. A correction deed is possible only when the error is genuine and unintentional. Moreover, all parties must agree to the rectified act.

Conditions for a Rectification Deed in India

A rectification deed is a legal document used to correct errors in an original property document, such as a sale deed or gift deed. The conditions for a rectification deed in India are as follows:

• Both parties involved in the original document must agree to the corrections.
• The errors in the original document must not be substantial and must be minor.
• The rectification deed must be executed on a non-judicial stamp paper of appropriate value.
• The rectification deed must be registered with the appropriate authority in the same jurisdiction as the original document.

It is important to note that a rectification deed cannot be used to change the fundamental terms of the original document. It can only be used to correct minor errors that do not affect the intent of the original document.

If one party does not agree to the corrections, the matter can be taken to court for resolution. However, this process can be time-consuming and expensive. It is always advisable to resolve such disputes amicably through negotiation and mediation.

What is the time limit for executing a rectification deed?

As per the statement of Sanjeev Chanda, an attorney at Meghalaya High Court, there is no specific timeframe mentioned by the law for correcting errors or mistakes in any document. If any party involved in the transaction discovers inaccurate information or discrepancies in the title document, it is important to notify the other party and rectify the mistake by creating a rectification deed.

Considering that these documents act as evidence of your ownership of an asset, it is crucial to promptly correct any errors. Neglecting to rectify these mistakes may put your position as the owner at risk.

Rectification Deed Format

Any rectification of the sale deed must follow a format that should contain the relevant details, including the error

The deed of rectification format must mention the following details

The deed must mention the following details:

• Personal information of the concerned parties
• Details of the Original Deed
• The discrepancy that needs to be rectified the concerned parties have to provide an undertaking stating that there are no changes to the original format and nature of the transaction.

A Sample Format for Deed of Rectification

This deed of rectification is executed at _____________, on _____________, between ______________, son/daughter of ____________, residing at ______________, hereinafter referred to the Rectifier/Vendor, which term includes its successors and assigns of the one part;

And

_____________, son/daughter of ___________________, residing at, __________, hereinafter referred to as purchaser/buyer, which term includes his heirs, executors, administrators, representatives and assigns of the other part

WHEREAS the property was sold by the rectifier in favour of the purchaser herein in and by sale deed dated and registered as Document No. of Book1 volume in the file of the Sub Registrar of __________ hereinafter referred to as the principal deed.

WHEREAS in the principal deed dated ________ in line _______of page number ________ the name of the purchaser was wrongly typed as _______ instead of ______. 

WHEREAS this typographical error has come to the knowledge of the above-said purchaser and requested the rectifier/vendor to rectify the same.

THE DEED OF RECTIFICATION WITNESSETH AS FOLLOWS:

That is the Principal Deed dated _______ in line _________ of page No. ________ the name of the purchaser of the property MENTIONED is wrongly typed as __________ and is rectified as ______________ by this rectification deed.

This rectification deed confirms that except for the change aforementioned, the principal sale deed remains in full force and effect.

That no consideration has been received by the rectifier/vendor for the execution of this Rectification deed.

Name of the purchaser

(In the principal deed)

_________

Name of the purchaser

(Rectified by this deed of rectification)

___________

Property market value: Rs __________

In witness whereof, the RECTIFIER/VENDOR and the PURCHASER have set their hands on the day and month year first above written in the presence of:

WITNESS 

__________________

RECTIFIER

________________

PURCHASER

___________________

You can refer to this correction deed format. It’s easy to follow and can be applied under various circumstances.

Rectification Deed Stamp Duty

For concerned parties, the rectification deed stamp duty depends on whether the original sale deed was registered or not. If not registered, you can null the previous deed and draft a new one.

In the case of registered deeds, you have to pay Rs 100 as stamp duty. However, if there is a mistake in the original Document regarding any area change, then stamp duty will differ along with the deed of rectification cost.

How to Use a Deed of Rectification for Name Change?

It is important to note that a deed of rectification for a name change can only be used for minor errors in the name. If there are major errors or discrepancies in the name, a rectification deed for name change may not work and a separate legal process may be required.

How to make a Rectification Deed? 

There are two ways to create a rectification deed.

1. At the office of the sub-registrar

If either party finds a mistake in the sale deed, they must go to the sub-office registrar’s where the deed was originally registered, in person. 

With all the necessary proof, they will have to fill out an application and send it to the office to ask for changes to the document. 

If big changes need to be made to the original document, both parties will need to bring two witnesses each for the rectification deed to be registered.

You can also carry out a rectification deed online. To get started, you will need to go to the website of the State land revenue department.

2. Create a Rectification Deed Online

Now visit the state official websites and apply for a rectified deed from the comfort of your home

Now, you can book appointments, fill out and pay correction deed stamp duty online. Each state has their official website for maintaining the rectification deed procedure online. Visit the concerned state website and apply for a correction deed.

Here are the official sites for some states:

1. West Bengal: www.wbregistration.gov.in
2. Maharashtra: gras.mahakosh.gov.in/igr/
3. Bihar: http://bhumijankari.bihar.gov.in
4. Gujarat: https://services.india.gov.in
5. Delhi: http://revenue.delhi.gov.in
6. Karnataka: https://kaverionline.karnataka.gov.in
7. Tamil Nadu: https://tnreginet.gov.in

Procedure for Rectification Deeds

Once a mistake is identified, both parties involved must know and agree verbally to rectify the error. All parties should be present at the Sub-registrar’s office, where the correction deed is created and registered. 

You have to apply for it and submit all the supporting documents. If there is any significant change like a change in property location, a witness from both parties should be present.

Now you can quickly rectify any minor mistake in your property documents with the help of a Rectification Deed. However, most of us are not well-versed in a lot of legal terms and implications.

Limitations of the Rectification Deed

1. Cannot be used for changing legal aspects of the documents such as the nature of the transaction or the initial intention of both the parties involved
2. Errors that come under the jurisdiction of the Sub-Registrar’s office 
3. A complete change in the property location, which in turn changes the jurisdiction
4. Correction Deed stamp duty errors

In conclusion, rectifying mistakes in property documents through a rectification deed is crucial to ensure accurate records and maintain the legal validity of your documents. However, legal issues such as these can be a hassle, especially for individuals who are not familiar with legal terms and implications. This is where NoBroker can Help. Contact NoBroker’s legal services to help you rectify errors efficiently and ensure accurate and reliable property records.

FAQ’s

Everything You Must Know about Settlement Deed

In the case of properties such as land or buildings, the meaning of the settlement deed shifts to – a legal instrument in which parties work out their differences or conflicts. According to the legal standard, the settlement is the disposal of real estate – whether mobile or inanimate – at the landlord’s discretion. It must be written down and recorded for a settlement deed to be valid. Court lawsuits, property partitions, and payment settlements are common conflicts resolved using a settlement deed. A family settlement agreement is another name for a settlement deed. It is a contract or legal instrument among family members that states that in the event of a disagreement, all members of the family adhere to the same terms and conditions. A settlement deed between family members involves family members that are most typically related to the distribution of properties. The settlement deed is a legally binding contract that must be documented.

What is a Settlement Deed?

The settlement deed is a quick and easy technique to resolve the situation. The settlement is a peaceful resolution to the problems. When people live in a society, disagreements are a common occurrence that cannot be stopped. It is a non-litigation option with legally binding provisions that the parties have agreed to. Because the settlement is declared final, these contracts frequently restrict the parties from pursuing a future lawsuit.

For those who are unsure what litigation entails. It’s just the process or act of bringing a case to a court of law for resolution. Litigation can be perplexing, consuming a significant amount of time and money. As a result, a Deed of Settlement can be a time and cost-effective way to resolve a legal dispute. A settlement deed format has to be precise for this to take place.

Conditional Settlement

The settlor can include conditions in the conditional settlement deed format that the claimant must obey. The requirements can be any terms, requiring the claimant to pay a specified sum every month or every year. The settlement can potentially become void if the requirements are not met. If any of the requirements are not met, the settlor has the power to revoke the agreement, rendering it void.  Otherwise, the agreement becomes void if the beneficiary fails to meet the agreed-upon terms. As a result, the settlers are free to impose their conditions. Both parties must follow the deed of settlement format.

Absolute Settlement

The settlement is not conditional, and no conditions are indicated in the event of an absolute settlement or unconditional settlement. Any condition does not obligate the claimant stated directly in the deed. The claimant is under no legal responsibility, and the asset is handed to the beneficiary without condition, with no power of revocation for the defendant. No clause can render the unconditional settlements void, and there are no conditions that can render the settlements void.

How do Settlements Take Place?

A settlement deed is always preferable to a will. Because you will only be declared the owner after issues that come up before the High Court. However, after a settlement deed, you immediately become the proprietor after you have filed. Yes, a provision regarding the transfer of the shares after his demise can be included. The parties agree on how to resolve the issue in a settlement agreement. The parties have reached an agreement on the final result. They document their agreement and have both sides sign it. The settlement agreement then has the same impact as if a jury had determined the case with that result.

Settlement Deed Format

The settlement deed is similar to other agreements in that it follows particular protocols. All parties must agree on the terms of the settlement agreement. External elements such as deceit, coercion, or deception should not be allowed to influence free consent. Oral and written agreements are both acceptable. If the agreement is written, it must be signed by all parties involved. Eyewitnesses must sign the document.

All sides must sign the settlement deed if it is used to divide the family property. The settlement deed sample between brothers, sisters etc., becomes null or void if they aren’t included and have not signed it. The members are obliged by the terms of the settlement deed after it is signed. The format for the settlement deed in Tamil can be found easily online for further reference. There are also many other family settlement deed formats that you can easily find details about from the lawyer or court.

DRAFT OF MEMORANDUM RECORDING ORAL FAMILY SETTLEMENT

THIS MEMORANDUM RECORDING ORAL FAMILY SETTLEMENT is made at _________ this ________ day of ____________ between Shri ____________ an Indian inhabitant residing at __________ _________ _________ (hereinafter called “the Party of the First Part“) of the FIRST PART, Shri ______________, an Indian inhabitant residing at _____________ _____________ (hereinafter called “the Party of the Second Part”) of the SECOND PART and Shri _________, also an Indian inhabitant residing at ____________________________________ (hereinafter called “the Party of the Third Part”) of the THIRD PART.

and reference to the parties hereto shall, unless repugnant to the context or meaning thereof mean and include their respective successors and assigns.

WHEREAS: –

1.     The parties hereto are related to each other, the party of the first part being the ____________ of the party of the Second Part etc;

2.     Serious disputes and differences have arisen between the parties hereto, relating to ___________, and which have disrupted the peace and harmony of the family and affected the business and family relations and threatened to resort to litigation;

3.     With the object of resolving the aforesaid disputes arising out of the conflicting claims made by the parties hereto as stated above and for effectuating a permanent solution of all the outstanding disputes once and for settlement was arrived at for ensuring family peace and harmony after considering what was best in the interest of the parties and in the expectation that the settlement would result in achieving amity and goodwill among the Parties and it was agreed that the parties and it were agreed that the settlement arrived at would be final and binding upon all the parties hereto and avoid any further disputes and or differences amongst the parties hereto.

4.     The parties hereto, have come to a settlement after the aforesaid discussion with the help of mutual friends to resolve the disputes and differences, and a memorandum of settlement with certain terms and conditions was drawn with a view to avoiding any future disputes and or differences amongst the parties hereto and that this memorandum has been entered into to record the said terms and conditions of the Family Settlement already agreed upon by the parties hereto.

NOW THEREFORE THIS MEMORANDUM OF FAMILY SETTLEMENT WITNESSETH THE SAID TERMS AND CONDITIONS AS FOLLOWS:

1.     In pursuance of the said agreement and in consideration of the premises, the parties hereto agree that the Party of the Third Part shall apply to the Court for grant of letters of administration with the will annexed of the estate of the late ___________, the deceased.

2.     Without prejudice to their right to get their shares in the estate of the deceased as hereinafter fixed and agreed to by the parties hereto, the heirs shall give their letters of consent to the Party of the Third Part for obtaining the letters of administration as aforesaid.

3.     In consideration of the premises, the Party of the Third Part shall immediately after the letters of administration have been obtained grant, deliver and transfer one-third of the said properties and assets (after setting apart a sum of Rs. ___________/- for discharging the liabilities of the late _____________ and also to meet the expenses for the grant of letters of administration in favour of the Party of the Third Part.) to each of the said heirs and retain the remaining one-third for himself.

4.     An inventory of the assets of the deceased and of the respective agreed values thereof, is listed in Part I of Annexure B, hereto. A list of the debts due and owing by the estate of the deceased is listed in Part II of the said Annexure B hereto. An estimated sum of Rs______ has been taken into consideration and set apart by the Parties in a separate Savings Bank Account no. with __________ Bank, _____________ Branch, towards the expenses of obtaining the Probate / Letters of Administration with the will annexed and the transfer/distribution of the estate of the deceased in accordance herewith and the said sum shall be utilized by the parties hereto, accordingly. In case of any deficit in meeting the debts of the deceased and/ or the expenses of proving the Will and distribution of the estate, the parties hereto shall contribute equally to such deficit.

5.     After setting apart sums to meet the debts of the deceased and the estimated expenses of distribution of the estate, The assets allotted to the said the Party of the First Part pursuant to the Family Settlement arrived at are more particularly described in the First Schedule hereunder written. Similarly, The assets allotted to the said the Party of the Second Part pursuant to the Family Settlement arrived at are more particularly described in the Second Schedule hereunder written. The assets allotted to the Party of the Third Part pursuant to the Family Settlement arrived at are more particularly described in the Third Schedule hereunder written.

6.     All expenses of and incidental to the grant of letters of administration as also of transfer of the shares to the respective parties hereto shall come out of the estate of the deceased.

7.     It is expressly agreed by and between the parties hereto that the heirs shall not claim any rights under the said codicil and the Party of the Third Part shall not, after obtaining the letters of administration with the will annex, claim any rights under the said will save as hereinbefore provided.

8.     The parties hereto confirm and declare that all the disputes and differences between them are settled and that none of the parties has any further or other claim or demand of any nature whatsoever against the other or others of them.

9.     The parties hereto expressly agree and declare that they have arrived at this Family Arrangement in order to put an end to existing and future disputes between the parties and with a view to bring about amity and goodwill amongst them and with a view to maintaining peace and bring about harmony in the family. The parties hereto further agree and declare that the terms of the Memorandum of Family Settlement arrived at between them and recorded herein are fair and bona fide and in the interest of all the parties.

10.  The parties hereto shall sign and execute or cause to be signed and executed all such documents, deeds, writing and/or instructions as may be necessary to give effect to the Family Arrangement arrived at amongst the parties hereto. On ___________ and which is recorded in this Memorandum of Family Arrangement-cum-Compromise.

Annexure ‘A’

(Copy to the Will)

Annexure ‘B’

Part I: List of assets of the deceased and estimated agreed values

Thereof.

The first schedule hereinabove referred to

(The assets allotted to the said the Party of the First Part)

Part IV: List of Debts of the Deceased.

The Second schedule hereinabove referred to

(The assets allotted to the said the Party of the Second Part)

The third schedule hereinabove referred to

(The assets allotted to the said the Party of the Third Part)

IN WITNESSES WHEREOF the parties hereto have hereunto set and subscribed their respective hands the day and year first hereinabove written.

SIGNED AND DELIVERED by }

the Party of the First Part }

Shri…………………….. }

in the presence of ___________ }

SIGNED AND DELIVERED by }

the Party of the Second Part }

Shri…………………….. }

in the presence of ___________ }

SIGNED AND DELIVERED by }

the Party of the Third Part }

Shri……………………. }

in the presence of ____________ }

Gift Settlement Deed

Through a gift deed, one can transfer the ownership of one’s asset to another. A Gift settlement deed means giving property to a close friend or family member through a gift deed with some financial ramifications that you should think about first. A certified gift deed is also proof in itself, and unlike a will, the transfer of ownership is instantaneous, and you will not be obliged to go to court to execute the gift deed, saving you time.

Difference Between Gift Deed and Settlement Deed

A gift deed is an act of giving. A Deed in which the compensation is not financial but is made in exchange for love and appreciation is known as a Deed. It is a gift agreement that transfers property from one person to another. This type of Deed is frequently used to give someone a gift. A gift Deed transfer can be recorded as a gift for national tax reasons.

It’s a better alternative to litigation because the parties agreed on legally enforceable conditions. Each party has the opportunity to express their concerns and interests during these conversations. In a family settlement, deed stamp duty is paid comparatively lesser than the gift deed.

Which is better Gift Deed or a Settlement Deed?

The best option is a gift deed. It is best to use a gift deed since the property is transferred from the donor to the recipient right away while the donor is still alive. Gift Deeds are best used to avoid paying stamp duty.

Documents Required for Settlement Deed

For a settlement document to be legitimate, a permanent asset such as land or a structure must be certified. The title document (parent document and Patta) in initial, the indefeasible certificate of the property (until the date of registration), ID proof, and Aadhaar proof of both parties – this list is not comprehensive. It differs on a case-by-case basis depending on the real estate settled. The requirements contained therein are the settlement. You can easily find more details regarding this online in any property settlement deed format pdf. The above-mentioned are a few of the documents required for a settlement deed in Tamil Nadu.

How to Cancel Settlement Deed?

The legitimacy of deeds is irrelevant to the register, and he will register any deed that provides revenue for the government. So disregard what the registers indicate. The question that arises is, can the settlement deed be revoked? The answer to this question is no; the settlement deed cannot be revoked once executed and acted upon. In your case, you agreed to the settlement deed and had the assets transferred to your name. In that case, your father loses his right to cancellation of the settlement deed format.

Do not lose possession of the properties. If your sister disrupts the peaceful ownership, file a lawsuit seeking a judgement that the second settlement deed is effectively worthless and order against any disruption to peaceful possession of the very same. The procedure to cancel the transfer of property through a settlement deed after all these disputes would be done by your lawyer, and they would let you know wherever you are needed for the cancellation process. You can get more detailed information about this in any family settlement deed format pdf online easily.

Can a Deed of Settlement be a Challenge?

The agreement will be assessed as stamp duty depending on the property’s worth. A settlement agreement can be contested in court, but it can only be cancelled by a court order. If there is fraud or coercion, deception, or illegal execution, a settlement agreement might be contested. 

While a properly prepared family settlement cannot be revoked without a court order, it can be legally challenged in the following situations. Any fabrication of facts about the contested property’s title can also lead to future disputes. 

However, a family settlement deed may be challenged in court in the following circumstances: When a contract was obtained by deception when a contract is forced into existence. When facts relating to the title, for example, have been manipulated.

Is the Money from a Divorce Settlement Taxable?

Taxation on the money received in a family settlement deed registration – accumulation of income – because the complete asset was in existence at the time of division and interested family members had their interests/shares, it was obviously a family settlement. As a result, the family arrangement is exempt from tax.

Stamp Duty due on Property Transfers between Family Members?

If the property is being passed in the name of the father, mother, son, sister, daughter-in-law, grandson, or daughter as a gift, 2.5 % of the value of the property must be paid in stamp duty.

Does a Settlement Deed need to be Recorded?

It is not necessary to register an oral settlement agreement. If the settlement is for collateral, the agreement must be stamped rather than registered. If the agreement is written, it must be registered to be considered legal and admissible in court. Although an unregistered settlement is illegal in the eyes of the law, the validity of the unregistered family settlement deed can enforce because it has already been signed and is in possession of the legal heirs of the dead titleholder. A family settlement might be either oral or written. Remember this basic idea in the family settlement: if a family settlement is to be effected through the use of a document, that document must be registered

We hope that this article has provided you with a general understanding of the settlement deed and the difference between a settlement deed and a gift deed. If you’re looking for some family settlement deeds in India, just search it up or enquire about it from court or lawyers to get more details and ideas about it. Use it to carefully organise the distribution of your property and other assets!

Frequently Asked Questions about Settlement Deed

Everything You Need to Know About Title Deed – Meaning, Registration and Types of Deeds

To keep the process calm, those entering the world of property purchase should expand their vocabulary before entering this uncharted territory. Various names are given to documents that prove the buyer’s ownership of a specific immovable property. It is also known as the title deed and is sometimes referred to as the sale deed. While you might believe the two things are the same, this is not the case. While you’re at it, learn the difference between a sale deed and a title deed, which are documents that prove your ownership of a property. 
What’s the difference between a sale deed and a title deed? What are the differences between them if they are different? We attempt to dispel the ambiguity surrounding this frequently asked question among buyers. Let’s examine the definitions of the two words, how they differ and understand the debate about the deed of transfer vs title deed.

What is title deeds of property

Among its many definitions, the Oxford Dictionary defines a title deed meaning as the “legal right to own something, particularly land or property; a document that proves this right.”. When you buy a property in real estate, you must go through a formal process known as property registration to obtain legal ownership of the asset. Property ownership is transferred to you through this process.  The main title deed vs sale deed difference is that the sale deed is the legal document that allows this process. The terms title deed and sale deed are frequently used interchangeably.

Title Deed Registration

Owners of commercial properties, such as commercial companies, directors, or trustees, can file title deeds. This allows them to ensure that they are properly registered if they need to raise funds. Some commercial companies use deed polls to ensure that their assets are correctly registered in their names if they need to raise funds.

To register a property and know-how to find title deeds, the seller must produce all previous records about the property used to create a sale deed. To put it alternatively, there must be a chain of documentary proof tracing a property’s original owner and subsequent changes in ownership. A sale deed eventually becomes a chain link in the form of a title document.

Difference Between Sale Deed and Title Deed

A major difference between a title deed vs a sale deed is that a title is a concept, whereas a sale is always in documentary form, although one helps establish the other. Your sale deed is a title deed because it acts as a statement of your ownership over an asset. The sale deed becomes a title deed as soon as it is registered, as it serves as proof that you now own a specific property. The sale deed serves several purposes and is a statement of the property titles. A sale deed, for example, keeps track of the property’s titleholders. If the property has changed hands several times in the past, the sale deed, for example, would contain every detail. However, there are no specific documents that can be referred to as a title deed.

Legal Difference

From a legal view, the difference between these two is that one is an agreement, and the other is a statement. The sale deed lays out all the terms and conditions under which the buyer and seller agreed to complete the transaction. This legal document, which must be registered with the sub-office registrars under the Registration Act, 1908, takes on the form of an agreement in its very nature.

This isn’t the case with a title deed. The title deed is a legally bound statement that only pertains to the rightful ownership over a specific property, although it is spoken through a sale deed. The title deeds also spelt out the owner’s rights and obligations. It’s also worth noting that the sale deed is the legal document that transfers property ownership to the buyer. The agreement-to-sell document isn’t given the same consideration.

Home Deed Vs Title Deed

When it comes to buying real estate, you’ll hear many terms thrown around. Most people mistakenly believe that property deeds and titles are interchangeable, but they refer to two different legal concepts. You will have both the Deed and the title when you fully own the property thereby knowing the title vs deed house argument. On the other hand, a title is not the same as a Deed. If you don’t know what you’re doing, mixing the two can cause problems.

The legal term for owning a right to something is the title. In the context of real estate, the title denotes ownership of the property, implying that you have the right to use it. It could be partial or complete ownership of the property. You can, however, access the land and potentially modify it as you see fit because you have a title. You can also transfer that interest or portion of your ownership to others if you have a title. You can’t legally transfer more than you own, though.

On the other hand, Deeds are legally acquired documents that pass ownership of property from one person to another. You do not require a title deed if you sell your property for less than the legal minimum. You will need to obtain a deed from the government if your property sells for more than this amount or if it requires any repairs, the government department is the answer to your where to check title deeds question.  A certified copy of title deed can be obtained by visiting the nearest registrar’s office. 

When it comes to selling your home, a house title deed is essential because it serves as proof. It demonstrates that you own the property and that there are no liens or other claims against it. It is critical to check the seller’s name before selling a home so that potential buyers are aware of any liens or court judgments against them.

Different types of titles deed 

Warranty Deeds

The most important documents for companies to protect themselves from liability are warranty deeds. They are also important documents that their legal team must draft, review, and sign. Warranty deeds are used for a variety of reasons:

• To transfer ownership of a product to a buyer.
• To provide certain warranties to the buyer, such as a warranty against material defects or a service warranty.
• During strict contractual agreements to protect the rights of one party.

The grantor transfers real property owned by the grantor to the grantee in a warranty deed. The grantee agrees to do or not do something in exchange. In other words, a warranty deed gives another person an interest in the property’s title deeds in exchange for the grantor’s promise. Under this agreement, the grantee may be required to take possession of and hold onto the specific property until a specific event occurs.

Quitclaims

One of the most important legal documents you can file is a quitclaim deed. You claim property ownership and relinquish your rights as a tenant in this legal document. This document contains a description of the property, the landlord’s name and address, and other pertinent, regularly updated information.

Previously, people who wanted to start over would use quitclaim deeds to document their separation from their previous lives. They’ve recently been involved in divorces and other property disputes. Quitclaim deeds are available in both analogue and digital formats. They could be created as a PDF or scanned into a Word document, then printed by the person who ordered them.

Gifts

A type of property ownership document is the land title deed. The bearer receives ownership of the property. The title deed gives the owner permission to occupy, use, and sell the property. Birthdays, graduations, weddings, anniversaries, and other occasions are good occasions to give title deeds as gifts. That piece of land would then become part of the recipient’s property.

Pledges

A pledge is an act of transferring ownership of a property to another person. Depending on the language, different types of title deeds are used. Depending on the language, different types of title deeds are used. A trust deed is the most common type of pledge. A pledge is not the same as a mortgage by deposit of title deeds, which is a loan.

Chattel Mortgages

Chattel mortgages are home-purchase loans available to people who are not qualified for a traditional mortgage because of a low credit score or insufficient income. They can, however, make monthly payments on the loan, just like with other instalment loans. They are an invaluable resource for the registration of mortgages by depositing title deeds or refinancing your existing ones. More people have used arranged mortgages to purchase homes than traditional mortgages in recent years. These mortgages are designed for people who do not meet the minimum income requirements but still want to own a home.

Memorandum of Deposit of Title Deeds Sample

DEPOSIT OF TITLE DEED This memorandum relating to Deposit of title deeds is executed on ________ day of ______________ month of _____________ year by Sri./Smt.__________________________, S/o./ W/o.____________________________, occupation____________________, and aged __________ years, residing at________________________________________________________________ _________________________________________________________________ _. herein after called the MORTGAGOR. 

In favour of Sri./Smt.__________________________S/o./W/o.________________________ _, occupation____________________, aged __________ years, residing at________________________________________________________________ _________________________________________________________________ _. Herein referred to as the MORTGAGEE. 

Whereas, the term Mortgagor and Mortgagee, unless repugnant to the context shall mean and include their representative’s heirs, successors, executors, administrators, trustees, legal representatives and assigns.

Whereas, the Mortgagor herein, is the sole and absolute owner of immovable property 3 bearing No.___________ known as _____________________ situated at morefully described in the schedule hereunder written and herein after called the schedule-A property. 

Whereas, the Mortgagor is the absolute owner, having acquired the property, by ____________________ 4 and since then Mortgagor has been in possession and enjoyment of the schedule-A property and paying taxes and levies thereon, as the sole and absolute owner thereof. 

Whereas the Mortgagee has agreed to advance to the Mortgagor a sum of Rs. ___________ (Rupees__________________only). The receipt whereof will be acknowledged by the Mortgagor under vouchers separately passed by him. 

NOW IN CONSIDERATION OF SUCH ADVANCE MADE OR TO BE MADE and for securing repayment thereof with interest thereon at ______________ per cent per annum from the date of such advance. The said Mortgagor has this______ day and is secured by way of deposit title deeds described in schedule-B referred to the property denoted in schedule-A hereto and it has been 2 agreed that the security deposit of title deeds be by the way of equitable deposit of title deeds documents about his title to the scheduled-A property in the place _________ a notified under Section 58(f) of the Transfer of Property Act, 1882 for repayment of the amounts becoming due together with any lawful charges, costs and expenses that may be incurred. 

SCHEDULE-A 

All the piece and parcel of immovable property 5 bearing No.____________ Measuring _______________ Bounded by:-

On the East: 

On the West:

On the South: 

On the North: 

SCHEDULE-B 

List of documents deposited with the Mortgagee; 1. 2. 3. 4. 5. 6. etc. The Stamp duty is paid as per Article 6 (1) of the Schedule to the Karnataka Stamp Act, 1957. 

IN WITNESS WHEREOF the Mortgagor has put his hand the day and year first hereunder written.

WITNESSES: 1. 

MORTGAGOR 2. 

MORTGAGEE

The above format is also the memorandum of deposit of title deeds stamp duty.

Do I need my house’s title deed to sell it?

The response to this issue can be tricky, but in most circumstances, you may not require a title deed unless you are transferring your properties for an amount that is lower than the amount that is specified in the legislation. You will be required to acquire a deed first from authorities if the sale price of your property is greater than any of this amount or if any repairs are necessary.

Because they serve as proof, title deeds are an essential component to have when you are seeking to sell your home. It demonstrates that you are the legal owner of the home even if there are no liens as well as other complaints placed against it. It is important to check the purchaser’s name before selling a house so that any potential purchasers are informed of any liens as well as court judgements that have been filed against the seller.

Commercial property title deed polls

A deed poll is a formal document that is used in the legal process of transferring land or property ownership to another individual. The signature of the legal document constitutes both the change of ownership of the property and the certification that the sale of the real estate has taken place.

Commercial corporations, their directors, and trustees who are the legal owners of commercial assets are eligible to submit the title deed of the property. They will be able to ensure that they are appropriately registered in the event that they’ll need to raise donations for any cause thanks to this. Deed polls are used by certain business companies to verify that their property is appropriately lodged in their names in the event that the company ever needs to raise capital for any reason.

Title Deed Polls for Commercial Properties

Deed Polls are legal documents used to transfer land ownership or property from one person to another. The legal document certifies that the property has been sold and includes the ownership transfer at signing.

Advantages Of Using a Title Deed Poll

The use of title deeds by homeowners to identify a specific property owner is a common real estate practice. The following information is included in the deed:

• The owner’s name
• Country and state where the property is located, i.e., where it is located
• Records of real estate taxes show the title to the property
• Anyone on behalf of the owner can read the description of the property

When it comes to legality and ownership of movable or immovable property, different aspects help determine the ownership. A title deed is one such agreement that is legally binding and it is important when a seller is transferring the ownership of the property to the potential buyer. Understanding all the legal requirements for buying and selling property can be tough. If you wish to consult real estate legal experts at NoBroker, you can do so by commenting below this article so that our executive can get in touch with you. NoBroker’s legal experts have enabled thousands of house owners and they have vast experience in explaining every step of the process.  

Frequently Asked Questions About Title Deed

Understanding Stamp Duty on Gift Deed in India

A gift deed is a legalised document that allows you to transfer property ownership without paying any money. The person who transfers ownership is known as a “Donor,” while the person who receives ownership is known as a “Donee.” A gift deed can only be legitimate if it has been officially registered and the gift deed stamp duty and registration charges for the gift deed have been paid. If you wonder how much stamp duty is on gift deed, this post will explain the many features of gift deed stamp duty, gift deed registration fee, and their rates.

Understanding Stamp Duty on Gift Deed

Gifting is the act of a person willingly transferring certain or all of his rights in an asset he owns to another person for no monetary payment. Given that they do not profit from the transfer of ownership of the property, it may appear strange that a donor is asked to pay a charge to have his property transferred to someone else. Although giving a house is not a typical transaction, it has income tax and stamp duty implications. In India, gift deed stamp duty differs from state to state and can range from 2% to 7% of the property value.

Gift Deed Stamp Duty in 2023

State	Stamp Duty Percentage
Andhra Pradesh	6%
Arunachal Pradesh	5%
Assam	5%
Bihar	6%
Chhattisgarh	6%
Goa	4%
Gujarat	5%
Haryana	6%
Himachal Pradesh	4%
Jammu and Kashmir	6%
Jharkhand	6%
Karnataka	3% for properties worth less than Rs. 45 lakhs, 2% for properties worth Rs. 45 lakhs to Rs. 90 lakhs, and 5% for properties worth more than Rs. 90 lakhs
Kerala	6%
Madhya Pradesh	6%
Maharashtra	3% for properties worth less than Rs. 20 lakhs, 2% for properties worth Rs. 20 lakhs to Rs. 50 lakhs, and 5% for properties worth more than Rs. 50 lakhs
Manipur	5%
Meghalaya	5%
Mizoram	5%
Nagaland	5%
Odisha	6%
Punjab	6%
Rajasthan	6%
Sikkim	5%
Tamil Nadu	11%
Telangana	6%
Tripura	5%
Uttar Pradesh	Rs. 5,000 for properties gifted between family members, 7% for other cases
Uttarakhand	6%
West Bengal	5%

Please note that these are just the general rates of stamp duty. The actual rates may vary depending on the specific state and the circumstances of the gift. It is always best to consult with a lawyer or a property expert to get accurate information about the stamp duty applicable in your case.

Bursting Gift Deed Myths: 

Owners who offer their property as a gift should know that they lose ownership of the transferred item once the gift deed is recorded. This is because the terms of a gift deed, like a sale or a relinquishment document, take effect immediately. This is not the scenario with a Will whose provisions only take effect when Will’s maker has died. Remember, however, that a gift deed is only valid until the stamp duty on the gift deed has been paid.

What Property Can Be Gifted?

Any immovable property that satisfies the requirements of Section 122 of the Transfer of Property Act, 1882, may be transferred via a gift deed. A gift tax on immovable property in India must be recorded with the sub-registrar office in accordance with sections 123 of the Transfer of Property Act and 17 of the Registration Act of 1908, just like a sale deed, with the exception that no money is exchanged in the transfer of the property. The contract would be void if this wasn’t done.

Income Tax on Gift Deed

The topic of whether gifts are taxable is one that taxpayers ask themselves frequently and on a regular basis. You can learn about various provisions relating to the taxability of gifts received by a person or a Hindu Undivided Family (HUF) in this section. A gift is any money or property that is given to an individual or a HUF without asking for it or in situations where the property is acquired for too little money.

From the perspective of taxation, gifts can be categorised as follows:

1. A “monetary gift” is any sum of money that is given without expecting anything in return.

2. “Gift of moveable property” refers to specific movable item acquired without payment.

3. “Movable property received for less than its fair market value” refers to certain movable properties that were acquired at a discount (or for insufficient compensation).

4. Immovable property acquired in exchange for nothing is known as “gift of immovable property.”

5. “Immovable property received for less than its stamp duty value” refers to real estate that was purchased for less money than it was worth.

Any amount of money received by an individual or HUF without consideration (i.e., a monetary gift received in cash, check, draught, etc.) will be subject to tax if the following criteria are met:

• Monetary amount received heedlessly.
• The total amount of money received in this manner during the year reaches Rs. 50,000.

Even though the gift-related laws apply to everyone, it has been reported that presents from residents to non-residents are said to not be subject to Indian taxation because the income does not accrue or arise there. The Finance (No. 2) Act, 2019 added a new clause (viii) under Section 9 of the Income-tax Act, stating that any income arising outside India, defined as money paid without consideration on or after 05-07-2019 by a person who lives in India to a non-resident or a foreign company, shall be deemed to accrue or arise in India. This was done to ensure that such gifts made by residents to a non-resident person are subject to tax in India.

5 Steps And Tips to Execute a Gift Deed

The process for registering a gift deed

The steps to execute the gift deed are as follows:-

1. A licenced expert will assess the real estate covered by the donation deed.
2. Both the giver and the donee must sign a gift deed in front of two witnesses.
3. To deliver the signed documents, make your way to the closest sub-registrar.
4. For the computation of the gift deed registration fees, including stamp duty, use a lawyer. The fees specified must be paid.
5. Get the deed attested

Stamp Duty on Gift Deed in Delhi Rates and Legal Requirements for Gift Deed

The Registration Act of 1908, which governs all deeds states that gift deed stamp duty in Delhi must be registered. 

• A qualified appraiser must appraise the property to be gifted.
• If the Donee is a woman, stamp duty in Delhi on gift deed will be 4 percent of the property’s worth and 6 percent if the Donee is a man.
• The registration price will be 1% of the whole amount plus Rs.100/- in pasting fees. 
• Registration applications must be submitted to the district’s concerned Sub Registrar office. The average response time is 15 days.

What is the Stamp Duty on Gift Deed in Maharashtra? 

Conveyance deed	Stamp duty rate
Gift deed	3%
Gift deed for residential or agricultural property passed on to family members	Rs 200
Lease deed	5%
Power of attorney	Property in municipal regions is worth 5%, whereas property in gramme panchayat areas is worth 3%.

The stamp duty on gift deed in Maharashtra is 3% of the property’s worth, according to Article 34 of the Maharashtra Stamp Act, responsible for the property gift deed rules which was revised in 2017. The gift deed stamp duty on gifted property is Rs 200 if the property in question is a residential or agricultural property gifted (without payment) to family members. 

Stamp Duty on Gift Deed in AP

The registration fee for a gift deed in Andhra Pradesh is 0.5 percent, with a maximum of Rs 10,000.

Stamp duty On Gift Deed of Commercial Property in Maharashtra

There are no exemptions from Stamp Duty and Registration Fees when it comes to commercial property. The Stamp Duty and Registration fees will be the same as the Sale / Conveyance Deed. If the property is in Maharashtra, for example, there will be 5% Stamp Duty + 1% LBT + 1% Registration Fees. These fees will be calculated based on the property’s Government Value.

Stamp Duty on Cash Gift Deed in Maharashtra

A cash gift deed is an agreement in which the donor (the person who pays the money) can give money to the Donee (the person who receives the money) without any other compensation or exchange. It depicts a donation of cash given voluntarily by one person to another. This deed details the amount of money to be transferred and any gift restrictions. . The rate of stamp duty for gift deed in Maharashtra for cash is 3%.

Stamp Duty on Gift Deed for Cash in Delhi

Because it records the act of providing a gift, a gift deed for cash is an important document, especially when gifting a significant sum of money. The stamp paper value for cash gift deed creates a legally binding document. A gift deed ensures proof of such transfer for both the donor and the Donee, avoiding future misunderstandings and misuse. The rate is 4%.

Stamp Duty on Gift Deed in Blood Relation

When it comes to stamp duty on gift deed in blood relation Maharashtra, immovable property, such as lands, a house, or an apartment, can now be passed down to one’s children or blood relatives without having to pay stamp duty. On March 25, 2015, Hon’ble Revenue Minister Eknath Khadase informed the Govt in the Assembly. As a result, stamp duty on the transfer of lands or flat immovable property to family members is waived.

He declared that immovable property, such as land, a house, or a flat, can now be transferred to the owner’s children or even blood relations merely by signing a transfer deed on Rs. 500/- stamp paper and paying no stamp duty on gift deed. Families of transferors will be relieved by this announcement, as they will no longer be required to pay 5% stamp duty at market value as per ready Reckoner. The minister stated that a transfer document executed on Rs. 500/- stamp-paper will suffice in such a case. Therefore, no stamp duty for gift deed in Maharashtra for blood relations. 

Stamp Duty on Gift Deed in Delhi in Blood Relation

Every state in India has a varied and regulated percentage of stamp duty that must be paid when a gift deed is registered. A gift deed’s stamp duty is usually less than a sale deed, although it is computed as a conveyance rather than a sale deed. The requirements for levying stamp duty on a gift deed differ by state. For example, gift deed stamp duty in Delhi is different for males and females, as it is levied at 5% and 3%, respectively.

Stamp Duty on Gift Deed in Blood Relation in Haryana

In Punjab and Haryana, a gift of immovable property to a blood relative is exempt from stamp duty. Parents, children, grandchildren, sisters, and spouses would all be eligible for the exemption as per the transfer of property from parent to child in India guidelines. The stamp duty on gift deed between brothers would follow the same.

Stamp Duty on Gift Deed from Father to Son

The stamp duty on gift deeds is the same as on a regular sale. There is an exception in the case of certain relatives, such as gifts from father to son. Until May 16, 2017, the rate of stamp duty on such a transaction in Maharashtra was restricted to Rs 200. In some states, the stamp duty will now be 3% of the transaction’s market value, whereas, in others, there will be no tax at all.

Stamp Duty on Gift Deed from Husband to Wife

To protect their interests, one spouse would be entitled to transfer immovable property to the other spouse, and stamp duty would not be an obstacle to property transfer. This step will go a long way toward protecting the spouse’s interests in difficult family situations or medical situations. Thus, there is no stamp duty on gift deed applicable here.

How do You Calculate Stamp Duty on a Gift Deed?

Because stamp duty on gift deeds must be paid as a proportion of the property value, the computation would be based on each state’s percentage levied on gift deed registrations. For example, in the state of Uttar Pradesh, the gift recipient must pay a stamp duty of 2% of the present value. If the gifted property has a declared worth of Rs 1 crore, the person receiving it will have to pay Rs 20 lakh in stamp duty on the gift deed.

Is it Possible to Reclaim the Property You were Given?

A gift can be returned; however, this must be considered and included in the recorded gift deed. Revocation of the agreement is not feasible under Section 126 of the Transfer of Property Act unless the donor indicates that he retains the right to reclaim the gift in the registered contract. This means that the donor must clearly state while drafting the gift deed that even after the gift deed is performed, the donor retains the right to withdraw the gift deed and restore the gift from the Donee if and when he so desires.

How Can NoBroker Help?

The transfer of a dwelling property under a gift must be completed by a registered instrument/document signed by or on behalf of the individual gifting the property and attested by at least two witnesses, according to the Transfer of Property Act and paying stamp duty on gift deed. If you need help from a professional tax and financial consultant then you will certainly find great options on Nobroker. Please leave a comment below this article; our executive will be in touch with you soon.

FAQs

What is Partition Deed and Why It is Important?

A partition deed is a vital document in India for dividing jointly-owned properties, often within families, ensuring a fair distribution of assets and responsibilities among co-owners. It prevents disputes and provides legal clarity, following the Indian Registration Act of 1908. Defining each co-owner’s share, minimizes potential conflicts, promoting harmony within joint property arrangements. Understanding this document is crucial for navigating property division in India. In this article, we explore the significance and key elements of a partition deed in the Indian context.

What is a Partition Deed?

A partition deed is a legal document that divides jointly-owned property among shareholders, allowing them to own and manage their portions independently. This is especially common in joint households when family members want to claim their inherited shares. Each divided part gains individual title, enabling owners to sell, gift, or transfer their property as desired. It simplifies property management and ownership within joint families.

Partition with Mutual Consent Vs. Without Mutual Consent 

Consent of Both Parties

• If all co-owners acknowledge that the property owner should be split, the partition deed can be signed.
• The partition deed guarantees that the property is divided according to each individual’s portion.
• Co-owners become lawful owners of their portion of the property when the partition deed is executed, and they are able to give, sell, or trade their share of the property.

In the Absence of Mutual Consent

• If the co-owners refuse to sign a partition deed, a lawsuit must be brought to court.
• Following that, the partition deed must be executed and recorded on stamp paper with the details of each joint owner’s portion.

What Does the Partition Act Entail?

A partition action must be filed if the family agrees to proceed with the partition deed. If there are any disagreements about the property’s rights, you can file a partition suit to have the disagreement resolved by a court. A division deed must be signed if all parties concerned are willing to settle any problems peacefully.

The portion of every co-owner of the property is defined by a partition document. Only when the division deed has been properly registered with the Sub-Registrar office can it be deemed a valid document. Following registration, the next step is to thoroughly register and imprint it on stamp paper.

Huf/Hindu Undivided Family Partition Deed Format in Word

Below mentioned partition deed will give you a general idea about the format commonly used in the English language:

This deed of partition made at __________this _________ day of

(1) Mr._________________, S/o._____________, Age ______years, Occupation__________, Residing at__________________________. Hereinafter referred to as the first party.

(2) Mr_________________, S/o._____________, Age ______years, Occupation__________, Residing at__________________________. Hereinafter referred to as the second party.

(3) Miss_________________, D/o._____________, Age ______years, Occupation__________, Residing at__________________________. Hereinafter referred to as the third party.

WHEREAS;

1. The parties are the members and coparceners of their joint and undivided Hindu Family and a house property situated at ________________, the details of which are given in Schedule ‘A’. Each party hereto is entitled to a share in the said property.
2. The parties desire to implement a partition of the said properties amongst themselves as they no longer desire to continue as members and coparceners of their joint family property.
3. The parties have agreed that the said property will be divided in such a way that:

(a) The property described in the first schedule shall be allotted to the first party exclusively.

(b) The property described in the second schedule shall be allotted to the second party exclusively.

(c) The property described in the said third schedule shall be allotted to the third party exclusively.

1. The parties hereto have proposed to effect and record the said partition in the manner following:

Now this deed witnesseth that

1. Each party hereto grant and release all his/her undivided share, right, title and interest in the property allotted to the other so as to constitute each party the sole and absolute owner of the property allotted to him/her.
2. Each party agrees that they will get the deed executed and registered and will equally share expenses involved in the process.
3. Each party agrees that they will not cause any hindrances or claim and right on the share they have agreed to give up through this partition deed.

Schedule A

(Details of Undivided properties belong to Joint Family)

Sl.

No.

Description of the property

1

2

3

4

FIRST SCHEDULE

(Property allotted to the share of Sri.__________________________First party)

SECOND SCHEDULE

(Property allotted to the share of Sri.__________________________Second party)

THIRD SCHEDULE

(Property allotted to the share of Miss_________________________Third party)

WITNESS:

1. FIRST PARTY
2. SECOND PARTY
3. THIRD PARTY

Partition Deed Between Two Brothers Format

When a property is co-owned by two brothers, a partition deed between two brothers is executed in the presence of mention of all assets and liabilities along with the witness details. 

Property Partition Deed Format in Marathi

खाली विभाजन कराराचे सामान्य स्वरूप दिले आहे. येथे नोंद घ्या की ही कृती केवळ वाचकांना कराराचा सामान्य दृष्टीकोन देण्यासाठी आहे. विभाजनाची ही कृती (१) श्री. _____________, एस / ओ. _________, वय ______ वर्षे, व्यवसाय ______, ______________________ येथे राहणा-या _________ दिवशी झाली. यानंतर पहिला पक्ष म्हणून संदर्भित (२) श्री. _____________, एस. ओ. _________, वय ______ वर्ष, व्यवसाय ______, ______________________ येथे रहा. यानंतर दुसरा पक्ष म्हणून उल्लेख केला जातो. ()) मिस _____________, डी / ओ. _________, वय ______ वर्ष, व्यवसाय ______, ______________________ येथे रहा. यानंतर तृतीय पक्ष म्हणून संदर्भित जेथे;

1. पक्ष हे त्यांच्या संयुक्त आणि अविभाजित हिंदू कुटुंबाचे सदस्य आणि सहकारी आहेत आणि ________________ वर स्थित घर मालमत्ता आहेत, ज्याचा तपशील अनुसूची ‘ए’ मध्ये देण्यात आला आहे. आतापर्यंत प्रत्येक पक्ष या मालमत्तेत वाटा घेण्यास पात्र आहे.
2. या मालमत्तेचे विभाजन आपापसात अंमलात आणण्याची पक्षांची इच्छा आहे कारण त्यांना यापुढे सदस्य आणि सहकारी म्हणून पुढे जाण्याची इच्छा नाही. त्यांची संयुक्त कुटुंब मालमत्ता.
3. पक्षांनी सहमती दर्शविली आहे की उक्त मालमत्ता अशा प्रकारे विभागली जाईलः

(अ) पहिल्या वेळापत्रकात वर्णन केलेली मालमत्ता पहिल्या पक्षास विशेषतः दिली जाईल. (ब) दुसर्‍या वेळापत्रकात वर्णन केलेली मालमत्ता दुसर्‍या पक्षाला पूर्णपणे दिली जाईल. (क) वरील तृतीय वेळापत्रकात वर्णन केलेली मालमत्ता तृतीय पक्षाला पूर्णपणे दिली जाईल.

1. आतापर्यंत पक्षांनी खाली दिलेल्या पद्धतीने प्रभाग रेकॉर्ड करण्याचा प्रस्ताव दिला आहेः

आता हे कृत्य याची साक्ष देत आहे

1. प्रत्येक पक्ष त्याला वाटेल त्या मालमत्तेत आपला सर्व / तिचा अविभाज्य हिस्सा, हक्क, हक्क आणि व्याज देईल आणि त्यास सोडेल जेणेकरून प्रत्येक पक्ष त्याला / तिला देण्यात आलेल्या मालमत्तेचा एकमात्र आणि परिपूर्ण मालक बनवू शकेल.
2. प्रत्येक पक्ष सहमत आहे की त्यांना कृतीची अंमलबजावणी आणि नोंदणी होईल आणि प्रक्रियेत गुंतलेला खर्च तितकाच सामायिक करेल.
3. प्रत्येक पक्ष सहमत आहे की या विभाजन कार्यातून देण्याचे त्यांनी मान्य केले त्या वाटेवर ते कोणतेही अडथळे आणणार नाहीत किंवा दावा करु शकणार नाहीत.

अनुसूची अ (अविभाजित मालमत्तेचा तपशील संयुक्त कुटूंबातील आहे) अनु. प्रथम मालमत्तेचे तपशील 1 2 3 4 प्रथम शैक्षणिक (श्री. ______________________ प्रथम पक्षाच्या वाट्याला दिलेली मालमत्ता) दुसर्‍या शाळेतील (मालमत्तेच्या वाट्याला दिलेली जागा श्री.

1. पहिला पक्ष
2. दुसरे पक्ष
3. तृतीय पक्ष

Property Partition Deed Format in Hindi

नीचे दिए गए विभाजन विलेख के लिए एक सामान्य प्रारूप है। यहाँ ध्यान देंइस विलेख में केवल पाठकों को विलेख का एक सामान्य दृष्टिकोण देना है।

विभाजन का यह कार्य __________this _________ के दिन किया गया

(१) श्री। _________________, एस / ओ। _____________, आयु ______ वर्ष, व्यवसाय __________, __________________________ पर रहते हैं। इसके बाद पहली पार्टी के रूप में जाना जाता है।

(२) Mr_________________, S / o। _____________, आयु ______ वर्ष, व्यवसाय __________, __________________________ पर रहते हैं। इसके बाद संदर्भ देंदूसरी पार्टी के रूप में एड।

(३) _________________________, D / o। _____________, आयु ______ वर्ष, व्यवसाय __________, __________________________ पर रहते हैं। इसके बाद तीसरे पक्ष के रूप में जाना जाता है।

जहाँ तक;

पार्टियां अपने संयुक्त और अविभाजित हिंदू परिवार के सदस्य और कॉपरेकर और ________________ पर स्थित एक घर की संपत्ति हैं, जिनका विवरण अनुसूची ‘ए’ में दिया गया है। प्रत्येक पार्टी हेटो उक्त संपत्ति में हिस्सेदारी का हकदार है।

पार्टियां अपने बीच उक्त संपत्तियों के विभाजन को लागू करने की इच्छा रखती हैं, क्योंकि वे अब अपने संयुक्त परिवार की संपत्ति के सदस्यों और कॉपर्कर के रूप में जारी रखने की इच्छा नहीं रखती हैं।

पार्टियों ने सहमति व्यक्त की है कि उक्त संपत्ति को इस तरह से विभाजित किया जाएगा:

(ए) पहली अनुसूची में वर्णित संपत्ति विशेष रूप से पहली पार्टी को आवंटित की जाएगी।

(बी) दूसरी अनुसूची में वर्णित संपत्ति को आवंटित किया जाएगाecond पार्टी विशेष रूप से।

(ग) उक्त तीसरी अनुसूची में वर्णित संपत्ति विशेष रूप से तीसरे पक्ष को आवंटित की जाएगी।

पार्टियों के सदस्यों ने कथित विभाजन को निम्नलिखित तरीके से प्रभावित करने और रिकॉर्ड करने का प्रस्ताव दिया है:

अब यह विलेख गवाह है कि

प्रत्येक पक्ष को हर कोई अपने सभी अविभाजित हिस्से को देने के लिए एक दूसरे को आवंटित संपत्ति में अपना सभी अविभाजित हिस्सा, सही, शीर्षक और ब्याज जारी करता है।उसे / उसे आवंटित की गई संपत्ति का ner।

प्रत्येक पक्ष इस बात से सहमत है कि वे विलेख निष्पादित और पंजीकृत होंगे और प्रक्रिया में शामिल खर्चों को समान रूप से साझा करेंगे।

प्रत्येक पार्टी इस बात से सहमत है कि वे इस विभाजन विलेख के माध्यम से देने के लिए सहमत हुए हिस्से पर कोई बाधा या दावा और अधिकार नहीं देंगे।

आयोजित करें

(अविभाजित संपत्तियों का विवरण संयुक्त परिवार से है)

क्र।

नहीं।

डेसंपत्ति का परिग्रहण

1

2

3

4

पहली अनुसूची

(श्री .__________________________ प्रथम पक्ष के हिस्से को आवंटित संपत्ति)

सेकंड स्कंध

(संपत्ति। श्री .__________________________ की पार्टी को आवंटित संपत्ति)

तृतीय अनुसूची

(संपत्ति Miss_________________________Third पार्टी के हिस्से को आवंटित)

गवाह:

FIRST PARTY

सेकंड पार्टी

और #13;

THIRD PARTY

Property Partition Deed Format in Telugu

Here is a partition deed sample in Telugu

విభజన దస్తావేజు కోసం సాధారణ ఫార్మాట్ క్రింద ఇవ్వబడింది. ఈ దస్తావేజు పాఠకులకు దస్తావేజు యొక్క సాధారణ దృక్పథాన్ని ఇవ్వడానికి మాత్రమే అని ఇక్కడ గమనించండి. విభజన యొక్క ఈ దస్తావేజు __________ ఈ _________ రోజు (1) మిస్టర్ ._________________, S / o ._____________, వయస్సు ______ సంవత్సరాలు, వృత్తి __________, వద్ద నివసిస్తున్నారు __________________________. ఇకపై మొదటి పార్టీగా సూచిస్తారు. (2) Mr_________________, S / o ._____________, వయస్సు ______ సంవత్సరాలు, వృత్తి __________, __________________________ వద్ద నివసిస్తున్నారు. ఇకపై రెండవ పార్టీగా సూచిస్తారు. (3) మిస్ _________________, డి / ఓ ._____________, వయసు ______ సంవత్సరాలు, వృత్తి __________, వద్ద నివసిస్తున్నారు __________________________. ఇకపై మూడవ పార్టీగా సూచిస్తారు. WHEREAS;

1. పార్టీలు వారి ఉమ్మడి మరియు అవిభక్త హిందూ కుటుంబ సభ్యులు మరియు ________________ వద్ద ఉన్న ఇంటి ఆస్తి, వీటి వివరాలు షెడ్యూల్ ‘ఎ’ లో ఇవ్వబడ్డాయి. ప్రతి పార్టీ ఇక్కడ చెప్పిన ఆస్తిలో వాటా పొందటానికి అర్హులు.
2. పార్టీలు తమలో తాము పేర్కొన్న లక్షణాల విభజనను తమలో తాము అమలు చేసుకోవాలని కోరుకుంటాయి, వారి ఉమ్మడి కుటుంబ ఆస్తి.
3. చెప్పిన ఆస్తిని ఈ విధంగా విభజించమని పార్టీలు అంగీకరించాయి:

(ఎ) మొదటి షెడ్యూల్‌లో వివరించిన ఆస్తి మొదటి పార్టీకి ప్రత్యేకంగా కేటాయించబడుతుంది. (బి) రెండవ షెడ్యూల్‌లో వివరించిన ఆస్తి రెండవ పార్టీకి ప్రత్యేకంగా కేటాయించబడుతుంది. (సి) చెప్పిన మూడవ షెడ్యూల్‌లో వివరించిన ఆస్తి మూడవ పార్టీకి ప్రత్యేకంగా కేటాయించబడుతుంది.

1. ఈ విభజనను క్రింది పద్ధతిలో అమలు చేయడానికి మరియు రికార్డ్ చేయడానికి పార్టీలు ఇక్కడ ప్రతిపాదించాయి:

ఇప్పుడు ఈ దస్తావేజు దానికి సాక్ష్యమిచ్చింది

1. ప్రతి పార్టీ అతనికి / ఆమెకు కేటాయించిన ఆస్తి యొక్క ఏకైక మరియు సంపూర్ణ యజమానిగా ఉండటానికి, ప్రతి పార్టీ తన / ఆమెకు అవిభక్త వాటా, హక్కు, శీర్షిక మరియు మరొకరికి కేటాయించిన ఆస్తిపై ఆసక్తిని మంజూరు చేస్తుంది మరియు విడుదల చేస్తుంది.
2. ప్రతి పార్టీ వారు దస్తావేజును అమలు చేసి నమోదు చేస్తారని అంగీకరిస్తారు మరియు ఈ ప్రక్రియలో పాల్గొనే ఖర్చులను సమానంగా పంచుకుంటారు.
3. ప్రతి పార్టీ వారు ఈ విభజన దస్తావేజు ద్వారా వదులుకోవడానికి అంగీకరించిన వాటాపై ఎటువంటి అవరోధాలు లేదా దావా మరియు హక్కును కలిగించవని అంగీకరిస్తారు.

షెడ్యూల్ A (అవిభక్త లక్షణాల వివరాలు ఉమ్మడి కుటుంబానికి చెందినవి) Sl. ఆస్తి వివరణ 1 2 3 4 మొదటి షెడ్యూల్ (శ్రీ వాటాకు కేటాయించిన ఆస్తి .__________________________ మొదటి పార్టీ) రెండవ షెడ్యూల్ (వాటాకు కేటాయించిన ఆస్తి శ్రీ .__________________________ రెండవ పార్టీ) మూడవ షెడ్యూల్ (మిస్ _________________________ మూడవ పార్టీ వాటాకు కేటాయించిన ఆస్తి) విట్నెస్:

1. మొదటి పార్టీ
2. రెండవ పార్టీ
3. మూడవ పార్టీ

Why is a Property Partition Deed needed?

When a property is co-owned by a group of individuals, there is a lot of uncertainty attached to it. Dividing the rights and responsibilities according to everyone’s wishes can be a tough task. Moreover, people might find themselves involved in familial disputes which makes it harder to co-own a property. In such cases, it is better to execute the partition deed and walk away with the individual’s shares. Once the consent of each co-owner is obtained, the legal process of partition can be carried out. Once done, each member gets to own their property and make some decisions regarding it. However, if there is no mutual consent involved, the interested party will have to file a lawsuit in court. 

Documents Required for Partition Deed Registration

Here are the documents required for the partition of land in India:

1. The preliminary document

2. Duty/Fees e-challan duty/fees e-challan duty/fees e-challan duty/Stamp Duty, Registration Fees, and Document Handling Fees, to name a few.

3. Print a copy of the PDE information.

4. Land revenue records as khasra and khatoni, as applicable in the deed

5. Transferred property map

6. Latest photographs of the parties in passport size

7. A current image of the property that has been transferred

8. Photo-identity cards for all parties and witnesses (Voter i-card, Kisan bahi, Bank passbook with photo, Id of the employer, Id of educational institution, ration card with photo, Aadhar card, LPG gas passbook with photo, pan card, driving licence, Arms licence with photo, voter list with photo, Degree / Mark sheet certificate with photo, and passport).

9. Copy of a Pan Card is compulsory where the valuation is above 5Lakhs.

10. Photographs of all the parties involved

11. PDE information sheet 

12.Copy of a Pan Card is compulsory where the valuation is above 5Lakhs.

Note: The amount of stamp duty and registration fees payable will depend on the location of the property and the value of the property. You can check the stamp duty rates and registration fees applicable in your state on the website of the Ministry of Finance.

Things to Keep in Mind When Executing a Partition Deed

In India, properties are frequently owned jointly, which inevitably leads to issues when the owners of the property disagree. The existence of numerous stakeholders makes selling a single share a difficult task. The main cause of this is the misunderstanding that joint ownership entails an equal ownership interest in the property.

By creating a partition deed, one can verify that the asset is divided legally and that each party has complete control over their respective half of the property, including the ability to sell, transfer, or gift it. Knowing what a partition deed is is crucial in India, where a property can give rise to both happiness and a lot of conflict. Here are some important things to keep in mind while executing a partition deed:

1. Consult with a Legal Expert: It’s advisable to consult with a lawyer or legal expert who specializes in property matters. They can guide you through the entire process and ensure that all legal requirements are met.
2. Clear Title and Ownership: Ensure that the property has a clear title, and all co-owners are in agreement regarding the partition. Any disputes should be resolved before proceeding.
3. Document Verification: Verify all property-related documents, including property title deeds, encumbrance certificates, and land records to confirm ownership and legal status.
4. Co-owner Agreement: Obtain the consent of all co-owners for the partition. All co-owners should be in agreement regarding the division of the property.
5. Property Valuation: Determine the fair market value of the property. You may need to engage a professional valuer to assess the property’s worth.
6. Drafting the Partition Deed: Prepare a partition deed with the help of a lawyer. The deed should clearly specify the property’s details, the shares each co-owner will receive, and other terms and conditions of the partition.
7. Stamp Duty and Registration: Pay the applicable stamp duty on the partition deed as per the Stamp Act of the respective state. After paying the stamp duty, the deed must be registered at the local sub-registrar office.
8. Adherence to State Laws: Be aware that property laws can vary from state to state in India. Ensure that your partition deed complies with the specific laws and regulations of the state in which the property is located.
9. Witnesses: The partition deed should be signed by all co-owners in the presence of at least two witnesses. The witnesses should also provide their signatures and contact information.
10. Distribution of Property: After the partition deed is executed and registered, distribute the property as per the agreed-upon shares among the co-owners.
11. Mutation of Records: After the partition is complete, update the property records at the local municipal office or panchayat to reflect the new ownership structure.
12. Tax Implications: Consider the tax implications of the partition, including capital gains tax and income tax, and consult with a tax expert if necessary.
13. Dispute Resolution: If there are disputes or disagreements among co-owners during the partition process, it may be necessary to seek legal remedies through the appropriate legal channels.
14. Post-Partition Formalities: Ensure that all co-owners receive their respective property shares and that the partition is completed without any pending issues.
15. Record Keeping: Maintain copies of all documents related to the partition for future reference and to establish ownership rights.

What is the Registration Process and Partition Deed Stamp Duty?

According to Section 17 of the Indian Registration Act, of 1908, a partition deed has to be registered in the office of the sub-registrar of the same area as that of the immovable asset. To finalise the partition deed, all individuals involved will have to pay registration charges and stamp duty according to the Indian Stamp Act, 1899. The value of stamp duty charges in Delhi is 2% of the total property value of the separated share. For Maharashtra, a 2% stamp duty charge is applicable along with 1% registration fees. 

As with any other registration, the partition deed must be recorded with the sub-office registrars in the location at which the property is located. In this scenario, Rs 1,000 in stamp duty is charged for each piece of the property. In addition, there will be a 500 rupee registration charge.

The division deed will not be legally binding if it is not registered by submitting the necessary stamp duty and registration fees. Consequently, Section 49 of the Registration Act, of 1908 prohibits the use of an unregistered partition deed as evidence.

Key Things to Remember

Your partition deed must be registered in accordance with Section 17 of the Indian Registration Act of 1908. By paying a stamp fee of Rs 1,000, the deed can be recorded. Keep in mind that unregistered deeds cannot be used as proof of anything.

How to Register a Partition Deed?

The registration process of a partition deed in India is as follows:

1. Creating the partition agreement: The initial step involves the creation of a partition agreement, a legally binding document that outlines the distribution of property ownership among co-owners. It is essential to engage a qualified attorney to draft this document, which should contain the following information:

• Names and addresses of all co-owners.
• A comprehensive description of the property undergoing partition.
• The allocation of shares for each co-owner in the property.
• Terms and conditions governing the partition, including any financial transactions or settlements among co-owners.

2. Settling the stamp duty: Following the creation of the partition agreement, the next critical step is to settle the stamp duty. Stamp duty is a government-imposed tax related to property transfers, and the amount varies based on the property’s value and the specific state regulations.

3. Submission of the partition agreement: After the stamp duty has been paid, it is necessary to submit the partition agreement to the local sub-registrar’s office, which corresponds to the property’s location. This process typically includes paying a filing fee.

4. Validation of the partition agreement: The sub-registrar’s office will scrutinize the partition agreement to ensure its compliance with legal requirements. If the document meets all necessary criteria, the sub-registrar will proceed to register it and issue a registration certificate.

What Happens if a Partition Deed Remains Unregistered?

The partition deed will not be legally binding if it is not registered by paying the necessary stamp duty and registration fees. Consequently, under Section 49 of the Registration Act of 1908, the unregistered division deed will not be accepted as evidence.

Partition Deed v/s Partition Suit: What Are the Differences?

Aspect	Partition Deed	Partition Suit
Purpose	Divide property ownership among co-owners through mutual agreement	Divide property ownership when co-owners cannot agree mutually
Initiation	Can be initiated by mutual consent of co-owners	Initiated by filing a lawsuit in a court of law
Pre-Requirements	Typically requires cooperation and agreement among co-owners	Requires a formal request for partition to co-owners; can proceed to court if parties disagree
Legal Time Limit	No specific time limit for execution; depends on co-owners’ agreement	Must be filed within three years of the right to partition accrual
Involvement of Legal System	Minimal involvement; drafted by a lawyer, submitted to sub-registrar’s office for registration	Involves legal proceedings, court hearings, and legal representation
Resolution of Disputes	Co-owners reach an agreement on property division	Court decides on property division based on legal principles
Function	Establishes and terminates co-ownership rights in jointly owned property	Establishes and terminates co-ownership rights, but through a court order

Both a partition deed and a partition suit serve the purpose of distributing property among co-owners, but they differ in their initiation, involvement of the legal system, and resolution of disputes. A partition deed relies on mutual consent, while a partition suit is a legal recourse when agreement cannot be reached.

Is Income Tax Levied on a Partition Deed?

Obtaining a partition deed does not require any transactions, hence there is no tax to be paid. A beneficiary is not needed to pay tax on the deed following the property division, but capital gains tax will be due based on the type of property.

Verbal Partition Settlement and Its Validity under the Law

According to the laws of inheritance among Hindus, Jains, Buddhists, and Sikhs, Class-I heirs of a property may enter into a verbal family settlement agreement and divide the property in accordance with their mutual preferences. It is not necessary to register the transaction because this oral agreement was achieved without using the partition deed as an instrument.

A division bench of the Delhi High Court declared in 2007 that there is no stamp duty due in the instance of a verbal property split. The case was Nitin Jain v. Anju Jain and others.

The court’s ruling said- it is legal to reach an oral family agreement dividing or partitioning the properties and then record a written memorandum in which the existing joint owners record that the property has already been divided or partitioned for perpetuity.

“Oral partitions have been recognised by courts in circumstances involving joint families. As defined by Section 2(15) of the Stamp Act, an oral partition is not a partition document. Therefore, since an oral partition is not an instrument, no stamp duty is due on it,” the HC added.

The shares of the co-owners in this type of organisation, however, remain undivided in the absence of a partition document. This also implies that they are not free to sell, give, or otherwise dispose of their individual portion of the property.

Can Share of Inherited Property be Sold?

It depends if you and the other owners of the inherited property are joint owners. You have the right to sell, transfer, or give away the property following the execution of the partition deed.

What happens when there is property partition among family members with mutual consent?

The deed of partition between co-owners may be signed by all co-owners when they have all agreed that the property should be divided.

The partition deed ensures that the property will be divided according to each person’s portion.

Co-owners acquire legal ownership of their respective portions of the property at the completion of the partition deed, and they are free to give, sell, or transfer those portions as they see fit.

What happens when there is property partition among family members without mutual consent?

If co-owners are unwilling to sign a partition deed, a lawsuit must be brought to the appropriate court.

Executing the partition document and registering it on a stamp paper with details of each joint owner’s portion must come next.

What happens When the Property is Partitioned?

A partition suit must be filed when the family decides to proceed with the partition deed. When there are any disagreements regarding the ownership of the property and you go to court to resolve the disagreement, a partition suit is filed. A partition deed must be signed if all parties are willing to resolve their differences amicably.

A partition deed specifies each co-share owner of the property. Only once this division deed has been properly registered with the Sub-Registrar office will it be regarded as a valid document. Following registration, the next step is to thoroughly register and process it on stamp paper.

Dissolution of HUF Deed Format

By completing a partition deed for each of the members, HUF may be dissolved. According to the Hindu Succession Act, the HUF coparceners shall get an equal share of the HUF’s assets. A coparcener is an individual who gains a title to the ancestral property through birth in the framework of a HUF.

DEED CONFIRMING PARTITION OF A HINDU UNDIVIDED FAMILY 

THIS DEED OF PARTITION is made on the ____ day of _____

BETWEEN

Mr.______, S/o______, R/o_______ of the first part;

AND

Mr.______, S/o______, R/o_______ of the second part;

AND

Mr.______, S/o______, R/o_______ of the third part; all three after it collectedly referred to as parties and individually as the first party, second party and third party respectively, which expression is inclusive of their related successors, heirs representatives and assigns.

WHEREAS

1. The parties consist a Hindu undivided family ruled by the Mitakshara School of Hindu law. By mutual consent, the parties, on the ___ day of ___ adjudged for doing a total partition of assets/properties of the Hindu undivided family. Per this decision, a division of the properties/assets was made on the _________ by mutual consents, convincing all the parties by it. share of each party was delivered and transferred in his name in the municipal records.

2. It is intended, that the parties may not controvert all the assets of the family laid in Schedule A to this deed, were partitioned.

NOW HENCE THIS DEED WITNESSES AS FOLLOWS:

1. The first party, the second party and the third party, consisting a Hindu undivided family having separated from each other and have divided the family assets as detailed in Schedule A of this deed.

2. assets were divided by parties into three parts, the following division between the parties has been adjudged upon;

Party of the first part………… All the property given in Schedule I

Party of the second part……… All the property given in Schedule II

Party of the third part……… All the property given in Schedule III

3. Each of the above stated parties is and shall be complete owner of property as given to him as per clause 2 above. None other party shall bear any rights, title or interest in those assets after it.

4. This partition was made by mutual agreement, leaving no power to any party in assailing on any ground whatsoever.

5. The first party shall keep original deed of partition. A true copy signed by all the parties shall be kept by other parties, which true copy shall be considered as effective as the original deed for all purposes and intents.

IN WITNESS WHEREOF, the parties to this deed have set their hands in the presence of

______________________

PARTY OF THE FIRST PART

______________________

PARTY OF THE SECOND PART

______________________

PARTY OF THE THIRD PART

Witnesses:

1.

2

Simplifying Partition Deed with NoBroker Legal Services

A partition deed simplifies property division, avoiding court disputes. It outlines terms, registered locally. Content may vary by religion or relationship. Co-owners gain individual property rights. Each property becomes a separate legal entity.

Streamline your property matters with NoBroker Legal Services. Our experts provide step-by-step assistance for hassle-free solutions. Contact us today for efficient, cost-effective real estate legal support.

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