Yato Dharmastato Jayah
- motto supreme court of India
- motto supreme court of India
Yato Dharmastato Jayah - motto supreme court of India
Vidya Devarajan
B.Sc., L.L.M, Master's in Cyber Law
Advocate at High Court of Madras
Trusted Legal Advisor for NRI's
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Settlor - Person giving protperty
Settlee - Person receiving property
FAQ: Settlement Deed
What is settlement registration?
Settlement registration is the process of legally recording a settlement deed with the Sub-Registrar office. A settlement deed is a legal document that transfers ownership of property from one person to another, often within a family, to resolve disputes or for estate planning purposes.
What is the difference between a settlement deed and a gift deed?
A settlement deed is generally used to transfer property within a family for consideration or to resolve disputes, while a gift deed is used to transfer property as a gift out of love and affection, without any consideration.
Can a settlement deed be challenged?
Yes, a settlement deed can be challenged in court on grounds of fraud, coercion, undue influence, or if it violates any existing laws.
Can a settlement deed be revoked?
A settlement deed can be revoked under certain circumstances, such as if it was obtained through fraud or coercion, or if all parties involved agree to cancel it.
In what circumstances can a settlement deed be done?
Family settlements: Distributing property among family members, resolving inheritance disputes, or ensuring a smooth succession plan.
Partition of joint property: Dividing jointly held property among co-owners
Compromise or out-of-court settlement: Resolving disputes related to property ownership without going through lengthy court proceedings.
Estate planning: Transferring property to future generations or creating trusts for specific purposes
When does the title transfer to the settlee after the settlement registration?
If the deed clearly states that the ownership transfers immediately and unconditionally upon registration, then the settlee becomes the absolute owner right away.
What happens after the settlement deed is registered?
Even with immediate transfer, the settlee may need to take further steps to update land records and other relevant documents to reflect their ownership.
Can I specify different transfer times for different properties in the same deed?
Yes, a settlement deed can cover multiple properties, and each property can have different conditions and transfer timelines.
I am a senior citizen who owns an apartment. I want to ensure my daughter inherits this apartment after my time. However, I also want to continue living in this apartment comfortably for the rest of my life. How can I settle this property to her during my lifetime itself?
You can create a settlement with life interests and register the same as the settlement deed. This will indeed transfer the ownership of your apartment to your daughter now, during your lifetime. This means legally, she becomes the owner today. However, the deed will also clearly state that you retain the exclusive right to live in the apartment for the rest of your life. This means you can continue living there comfortably, and no one can ask you to leave. After you pass away, your daughter’s ownership becomes absolute, and she will have full control over the apartment.
Can the settlee sue the settlor for damages or misuse of the property after the settlement with life interest is registered?
Yes, you can take legal action if the settlor damages or misuses the property.
Can I change my mind after creating settlement deed?
Generally, no. A settlement deed, once registered, is considered irrevocable. This means you cannot simply cancel it on a whim.
What if I simply want to make changes to the deed?
Instead of complete revocation, you might be able to modify certain aspects of the deed. This would also require mutual agreement with the settlee and proper legal procedures.
Can the settlor revoke the settlement deed with life interest?
Yes, he can revoke the same if the conditions in the settlement with life interest are not met.
I made a mistake in my settlement deed. Can I correct it after registration?
Yes, Typographical errors: (spelling mistakes, incorrect dates, etc.) These can usually be corrected by executing a Rectification Deed. This is a separate document that acknowledges the original error and states the correct information. It needs to be registered with the Sub-Registrar’s office.
Can the settlement deed be cancelled?
Yes, if all parties agree, you might be able to cancel the original deed and execute a new, corrected one.
I have a property with a life interest. Can I sell it or rent it out?
If the deed doesn’t mention anything about selling or renting, it’s generally assumed that you cannot do so without the consent of the remainderman (the person who will inherit the property after your lifetime).
FAQ: Non Resident Indians - Settlement
I’m living abroad and cannot travel now. My mom lives in India in one state, and our family property is in another state. She wants to transfer it to me, and she cannot travel to the location of the property. How can she transfer the property to me?
Your mother can execute a Special Power of Attorney (SPOA), appointing a trusted individual (such as a family member or attorney) in the state where the property is located to act on her behalf. Once the SPOA is registered, the agent can prepare the settlement deed to facilitate the transfer of the property to you. The agent will then travel to the appropriate registrar’s office in the state where the property is situated, carrying the settlement deed from your mother to you.
This process allows both you and your mother to manage the transaction without needing to travel, effectively utilizing the Special Power of Attorney.
I'm an NRI. Can I create a settlement deed for my property in India while I'm abroad?
Yes, absolutely! You can create a settlement deed for your property in India even while you’re residing abroad.
I can't travel to India for registration. Can I appoint someone to do it on my behalf?
Yes, you absolutely can! Since traveling to India might not be feasible for you, you can appoint someone you trust to handle the settlement deed registration on your behalf. This is typically done through the Power of Attorney (POA). You’ll need to create a POA document that clearly authorizes your chosen representative (often a family member or close friend) to act on your behalf in all matters related to the registration. This includes signing the deed, paying the necessary fees, and interacting with the Sub-Registrar’s office. The POA needs to be properly attested by a Notary in your country of residence to be legally valid in India. This way, you can ensure the smooth registration of your settlement deed even without being physically present in India.
What are the specific documents I need as an NRI for settlement deed registration?
- The Settlement Deed: The original signed and attested settlement deed document.
- Identity Proof: A copy of your passport, along with your visa details.
- Address Proof: Documents confirming your overseas address.
- OCI/PIO Card: If applicable, Overseas Citizen of India (OCI) or Person of Indian Origin (PIO) card.
- Power of Attorney: If you’re appointing someone to register the deed on your behalf, you’ll need a properly attested Power of Attorney document.
- Property Documents: The original title deed or sale deed of the property being settled.
- Encumbrance Certificate: This document shows the property’s transaction history and verifies that it’s free from any legal encumbrances
I'm concerned about the tax implications of creating a settlement deed as an NRI. What should I know?
Irrespective of your NRI status, you’ll need to pay the applicable stamp duty and registration fees to the Indian government for registering the settlement deed. These charges vary from state to state and depend on the value of the property.
Are there any special regulations for NRIs regarding property transactions in India?
NRIs are generally allowed to acquire and transfer immovable property in India without seeking special permission from the Reserve Bank of India (RBI). However, there are restrictions on acquiring agricultural land, farmhouses, and plantations.
NRIs can only acquire these types of properties through inheritance or with special permission from the RBI
** the answers provide above are generic questions we've received from our clients. We advise you to contact an advocate and get a legal advice for your situation before proceeding with any further actions.
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