Settlement Deed & Transfer of Property by a Non Resident Indian (NRI)
A Non Resident Indian (NRI) who have left India and/or are either staying abroad or have obtained the citizenship of a foreign country have their immovable properties and/or real estate in India. The said immovable properties or estates are in the form of either a joint ancestral property (which is being inherited) and self-acquired properties (which is/are self-purchased or self-owned) respectively.
In case of the self-purchased/self-owned properties there exists no problem with respect to any share and/or partition as the same is the absolute property of the person or the Non Resident Indian (NRI) in the present case whereas when the property is a jointly ancestral property which shall be inherited by all the legal heirs including the cognates and agnates and there has to be a share partition then there arises issues, disputes and problems.
The best way to resolve issues with respect to the partition and share of the ancestral property is to enter into a “One Time Full & Final Settlement Deed” which shall be jointly executed between all the legal heirs and the property can be divided amongst them.
The “One Time Full & Final Settlement Deed” shall carry the following primary clauses i.e.:
- Distribution of Property Clause: All the legal heirs should agree to the distribution of the ancestral property in the ratio which is agreed upon.
- No-Objection Clause: All the legal heirs should agree to the distribution of the ancestral property and should agree and accept that they do not have any objection to the same.
- No Claim Clause: All the legal heirs should assure, declares and undertake that he/she and/or his/her legal heirs and/or his successors has/have no claim(s), demand(s), interest(s) and right(s) pending against the share of the other person.
In order to execute this Deed, the NRI needs to visit India once, he/she has to sign the documents along with the other legal heirs or co-parceners and the same needs to be executed in the presence of two neutral witnesses. Further, it is advisable that the Deed should be registered with the office of the Sub-Registrar and the same should also be updated with the land records while also executing the other allied documents relating to the transfer of property including mutation of the property and its registration on the name of the new owner. The legal heirs have to individually bear the liabilities related to taxation, stamp duty and property registration charges.
Authored By: Adv. Anant Sharma