Legal Question in Real Estate Law in India

Property Sale within Family.

I am in a complex situation and I need your help in clarifying the same.

The propery in question is owned by my Paternal Grand Father, who had a registered will to pass the ownership rights on the house to his wife (My paternal Grand Mother). Both of them passed away. My paternal Grand Mother did not leave a will before she died. They have 3 Sons and 2 Daughters, out of which 2 sons and 1 daughter also passed away. I am the son of the 2nd Son who passed away. Now, when the family wanted to settle the property, I opted to pay the share to everyone (20% each to surviving heirs) and get the property registered on my name. I need to raise a loan from the bank to complete the transaction.

Now, How do I go about getting the property registered on my name? Do a straight forward sale deed (makes me pay 9.5% registration fee) or get a relinquishment deed (pay 1% for the registration) or get a Gift Settlement Deed (I dont know how much fee is charged)? Whatever it is, i need to find an optimum process to reduce my registration expenses and pay my relatives by raising a loan from the bank.

Can you please help me out with this situation by giving an appropriate advise? In the sense, what kind of least expensive registration do banks honor?


Asked on 10/17/08, 4:08 pm

2 Answers from Attorneys
Shrichand Nahar S.V.Nahar, Advocate

Re: Property Sale within Family.

If you are making payment of price for the property or its share, you need to do a duly stamped and registered sale deed.

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Answered on 10/18/08, 3:00 am
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: Property Sale within Family.

You may consider about getting a "family settlement" executed in the family and obtain relinquishment deed from all other legal heirs. The 'family settelement' may be acted upon by the authorities to transfer the property in your name without registration thereby saving your all expenses on stamp duty etc..

If they do not honor the settlement, you may get it registered.

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Answered on 10/17/08, 6:28 pm


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