[quote="advokaterajiv" post=9607]Dear Pankaj,
There is often confusion while seeking partition of properties amongst Hindu families, whether parties should opt for a family partition deed or a family settlement deed. The effect of the both is same - divide the property. The substantial difference is that of the payment of stamp duty and registration of the document recording partition.
A family settlement is essentially an agreement where family members mutually work out how a property should get distributed among themselves. All the parties should be related to each other and have a claim to a share of the disputed property. The latter need not be limited to real estate, but can also cover movable assets like jewelry or money in bank accounts. A family settlement is usually used to settle common property or joint property that the family owns as opposed to individual or self-acquired property. Also, merely reaching a consensus is not enough; there are a few legal formalities that must be completed to ensure that the agreement is valid.
Firstly, the settlement document must be signed by all the family members involved. A missing signature can easily become ground for challenging the document in court at a later date. In addition, as a safety measure, the document should be attested by two witnesses, though it is not mandatory. The next step is to register the agreement. According to Section 17 of the Indian Registration Act, a family settlement that purports to assign immovable property must be mandatorily registered or the deed would be invalid. A stamp duty is applicable on such deeds and the amount would depend on the value of the property involved.
Regards,
Adv. Rajiv Malhotra
www.lawkonect.com[/quote]