Last Updated on April 24, 2019 by Legalseva.net
Around more than 60 percent cases pending in the courts are property related disputes among family members. Another 10 percent are related to other family matters. The disputes may occur due to absence of a registered will or someone trying to challenge the will. Also, some try resolving issues through a family settlement agreement which shows how the family members have agreed upon the property’s distribution among the heirs or beneficiaries.
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Bottom of FormNot every family want to drag its property related disputes to the court, some may want to settle its matters out of the court. In that case, they may go for a family settlement agreement which needs to be signed by all the members acknowledging that the said agreement is not made through fraudulent means, force and coercion from any family members. A family settlement deed also includes immovable assets, shares, claims and family feuds apart from the property.
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FORMAT OF A FAMILY SETTLEMENT DEED
The family settlement deed is very much similar to a partition deed. The agreement must mention names of all the family members whose decision matters in this regard, details of ownership of the property and the specific terms of this distribution of the said property. It becomes clear if all the details of the property with house number, area and even a site map are included in specific.
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The members need to declare that they agree with each other and convene to the terms and conditions and that this agreement is a final word and would end the ongoing dispute within the family with respect to the property.
Some other details such as payment of dues whether from the past or that which may arise in future needs to be mentioned. The previous owner is not liable to bear these costs in future but this must be borne by the beneficiary or transferee and no claims can be raised at a later stage. The agreement can also be sealed by thumb impressions.
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LEGAL ENFORCEABILITY OF THE DEED
It is to be kept in mind by those who sign the deed that the settlement deed also has a legal force and all the parties agreeing to the terms and conditions need to abide by it. It would also be forwarded to the concerned authorities who will facilitate the transfer of property and distribution as per the terms and conditions laid out in the agreement. The parties are also bound to execute a No Objection Certificate (NOC) and other documents with regard to the mutation of a property.
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REGISTRATION OF FAMILY SETTLEMENT DEED
The family settlement deed shall be considered as final and conclusive and shall not be altered or changed at any subsequent stage of the settlement. All the parties of the agreement for family settlement shall be bound with the terms of the Settlement agreement and shall adhere to the respective shares as demarcated and stated under the agreement for family settlement.
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To the pursuance to the agreement for family settlement, the settlement agreement shall be registered and all the parties to the present settlement undertake to present themselves for registration of the present Settlement agreement before the authorities concerned.
A family settlement agreement can be orally conveyed or in a written format. A settlement doesn’t require registration if it is oral. But for the written word to be considered legal, registration is required because it is accepted in a court of law.
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You must take an expert advice from a good/top/best Family/Property/Will lawyer/Advocate before making an arrangement with the family members and putting it onto the papers. A sound professional legal advice goes a long way in preserving your rights.
This post is written by Dipti Prakash of Punjab University (2020 batch). For more info on the subject, please dial 99888-17966.
