Transfer/sale between siblings

Release deed would be sufficient

Dear Mr. Gopalakrishnan,

Thanks for your reply.

I suppose the release deed wold be a simple one in this case.

Has it to be registered with stamp duty?

If yes, is there any way to avoid registration in this simple case which is between two sisters, one releasing her right to the othe for a consideration. My elder daughter lives in the USA.

The elder daughter can even gift the 3 lakh premium to her sister if that helps to avoid registration etc.and use of plaion paper?.

Thanks for your reply in anticipation.

Regards

 DC Bhargava

Dear Bhargava,

All transactions related to immovable property must be compulsarily registered. Even a release deed needs to be compulsarily registered at the local sub registrar's office with the mention of consideration received in the release deed . Pl pay the appropriate stamp duty charges of 1% of the market value of the property to avoid any kind of problems in future.

Thanks Vishnu,

Since my elder daughter resides in the USA, and the property is in Jaipur where it was registered and will be re-registerd, I feel it may be better for her to transfer the money by cheque from her NRO a/c  through a Gift Deed . In this way both the daughters names will remain for some more time which is what we want. Internally, younger daughter will write a letter to her sister saying she renounces all her rights in the plot etc.

If you agree about the suitability of the Gift Deed under the circumstances, kindly advise:if it can be merely on plain paper (along with younger daughter's acknowledgement) or stamp paper (denomionation?) and notarized?.

 Do you have any sample gift deed suitable for this purpose in view, if so kindly inform website address; I can make the appropriate changes.

Thanks a lot

DC Bhargava

Dear Bhargava,

"All transactions related to immovable property must be compulsarily registered."

Relinquishment of one 's right on plain paper or stamp paper has no value, if the matter goes to court at a later stage. Instead pl ask your younger daughter to relinquish her rights on the said property , by a registered relinquishment deed at the local sub registrar's office where the property is located along with two witnessess.The stamp duty charges for relinquishment in rajasthan is 11% of market value. In that release deed, pl mention the cheque your younger daughter has received as consideration for relinquishing her rights. Kindly follow the above mentioned procedure to avoid any form of legal hassles in future.

Dear Vishnu,

Thanks for your such clear guidance.

1. Are the stamp duty charges for transfer to close relatives in Rajasthan 1 % or 11 %? I think you have inadvertently mentioned  two different figures in your two kind replies..

As mentioned, my elder daughter lives in USA. and the plot is in Jaipur.

2. Would the stamp charges etc for a gift deed for the properrty be cheaper than a release deed?

3. I hope I do not sound funny if I ask if it is  possible for me as the father to go alone to Jaipur to complete the formalities and transfer my younger daughters (based on special power of attorney) 50 % share in the plot to  my elder daughter (based on her General Power of Attorney which I already have).

4. What would be required to be done if simultaneously elder daughters husband'sname  or my name were to be added in place of younger daughters who will be releasing her share.

THanks in anticipation for your kind reply

DC Bhargava

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