Settlement deed
HASANBASHA
(Querist) 24 January 2015
This query is : Resolved
Dear sir,
One of my friend's mother belongs to hindu religion has three children, she made a settlement deed of her property to her eldest son that the settlee will have sole ownership of the property after the life time of the settlor and the other children of the settlor of the first part are absolutely banned from any stake in the property but the settlee died before the settlor. Settlee was a divorcee and no issues.The settlor like to sell the property so we approached to the concerned sub-register office to cancel the settlement deed but the official told no need to cancel the deed, the described property automatically goes to the settlor. Is it correct? She can sell the property without cancelling the settlement deed? Waiting for your valuable suggestion.
Regards
Hasan
T. Kalaiselvan, Advocate
(Expert) 24 January 2015
The settlement deed will come into force only after the demise of the donor, therefore the registrar is right in his opinion that there is no need to cancel the registered settlement deed already made. However for encumbrance purposes, in a fresh step to transfer/convey the property through the same mode or by sale deed or gift deed or by Will, a mention about the existing settlement and it becoming infructuous due to the said reason, may be endorsed to avoid confusion and unnecessary legal hurdles in the future.
Guest
(Expert) 24 January 2015
The Settlement deed to be Cancelled at Registrar office by the Executor.
Anirudh
(Expert) 24 January 2015
What is described as 'settlement deed' is nothing but a WILL. Just because somebody has wrongly described the instrument as 'Settlement Deed' will not make it a settlement deed, when the whole tenor of the instrument is that of a WILL.
As rightly stated by the Registrar, there is no need for any cancellation.
The Settlor can deal with the property in the normal course (as though nothing had been settled earlier at any point of time).
Rajendra K Goyal
(Expert) 24 January 2015
Agree with the expert T. Kalaiselvan, Advocate.
HASANBASHA
(Querist) 24 January 2015
Thank you so much to all.
