Settlement of property by one brother from other two brothers
C.A Alok Mukherjee
(Querist) 16 July 2012
This query is : Resolved
A family property is to be settled after the demise of father between two brothers and one sister as transferor to the youngest brother transferee. Now, for this property the youngest brother will give a consideration as agreed upon equally to the transferor brothers and sister.
In what mode this transfer would be executable whether by settlement of gift of family property or by execution of a sale deed.
As of now, all the four brother and sister are the beneficial owner of the property after father's death.
Which is safest and legally valid for the transferee.
Nadeem Qureshi
(Expert) 16 July 2012
Dear Querist
if there is a family settlement then no need to go for sale deed, but if there is any consideration between the parties then sale deed should be registered as a Civilized Citizen of the Country. But it is not mandatory.
Feel free to call
C.A Alok Mukherjee
(Querist) 16 July 2012
Dear Mr. Nadeem,
The fact is as of now all the three brothers and one sister are beneficial owners. so basically the others are relinquishing their right in property with a consideration to another. The younger brother transferee who wants to be legal owner and for that purpose if the consideration is to be referred in the deed he wants to refer it for future Income Tax disclosure purpose. At the same time the benefit of a participation deed is executable at a lower percentage of stamp duty / registration cost since this is among the same blood relation.Can this benefit is doable with the mentioning of consideration in the execution of deed.
J K Agrawal
(Expert) 17 July 2012
Dear Mr Alok.
The relinquishment deed is always without consideration.
Family settlement is division of property. One can get 90% and other can get 10% but again passing any consideration is not allowed.
All the family settlement and relinquishment deeds are subject to challenge in future by heirs and not safe is every thing in not accountable in future.
So the safest way is sale deed only.
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