Also, members surrender their claim in the shares that have been allocated to the other members.įor example, if Ram, Shyam and Mohan divide a property through a partition deed, then, Ram and Shyam would give up their right in the part that has been allocated to Mohan. Each divided share of the asset gets a new title. Once the partition deed comes into effect, each share in the property becomes an independent entity. What happens to a property after a partition deed is executed? See also: Inheriting assets after death of the owner While the Hindu Succession Act, 1956, is applicable on the partition in a Hindu Joint Family, the Hindu Partition Act of Property, 1892, is applicable on partition of a property that is jointly owned. See also: All about property rights of daughters married before 1989Īccording to the Hindu Succession Act, 1956, a deceased Hindu’s assets are divided among his legal heirs, either according to his will, or under the rules stated in the Act if the person has died without leaving a will – i.e., intestate. At the time of partition, the share of each member is determined, based on his entitlement under the applicable inheritance laws. This brings into picture inheritance laws governing property division among Hindus, Muslims and Christians. Partition of any property is subject to the laws of inheritance. See also: Types of joint ownership of propertyĪpplication of inheritance laws on partition deed between family members In case of inherited property, co-owners would get their share in a property based on their treatment in the inheritance law governing their religion. However, the law assumes each member to have an equal share in an undivided property, unless documentary proof stating otherwise is produced. If the ratio of their contribution is 60:40, the division would be in this manner. If two siblings bought a property for, say Rs 1 crore and each contributed Rs 50 lakhs, the property will be divided equally between the two parties through a partition deed. If a property is being divided between two people who have invested in the purchase, the division is based on their respective contribution. Partition deed: Legal aspects How is property divided through a partition deed? Since no transfer has taken place as such through the partition, the beneficiaries are not liable to pay any capital gains tax after the division. Know about: Partnership deed Income tax on partition deed (However, it is not mandatory for the co-owners to register the partition deed in the state.) The same rate is applicable on registration of partition deeds in Maharashtra, along with a 1% registration charge. Stamp duty on partition deed varies from state to state. For example, in Delhi, 2% of the value of the separated share of the property has to be paid as the stamp duty on a partition deed. This means that the parties involved in the partition, will have to pay stamp duty charges (under the provisions of the Indian stamp Act, 1899) and registration charge, to get the partition deed registered. This is mandatory under Section 17 of the Indian registration Act, 1908. To attain legal validity, a partition deed must be registered with the sub-registrar of the area in which the immovable asset is located. After the payment of stamp duty and registration charges, you can book an online appointment to register the partition deed at the sub-registrar’s office.Īlso read all about probate meaning, uses and how to apply for it Once you done with that, you will have to pay the e-stamp duty on the Stockholding Corporation of India website. Step 6: You will now have to follow a detailed process to provide first party, second party and witness details to start partition deed registration process. Step 5: You will now be asked to provide the mobile number of the second party, and property valuation. Step 4: From the sub deed option, select ‘Partition Deed’. Step 3: From the options available, select ‘Partition Deed’ option. Step 2: On the homepage you will se the ‘Deed Writer’ option. Step 1: Visit the Delhi Online Registration Information System (DORIS) website. In our example, we are showing you the process to register partition deed in Delhi: The procedure of partition deed registration is by and large similar in most states. To execute a partition deed, the following documents are required: Name, age and address of the joint ownersĪlso read: Stamp duty on property registration in Gujarat.See also: Partnership deed must be stamped as required by Indian Stamps ActĪ partition deed would mentioned the following information: The need for a partition deed arises, when it becomes important to create a clear division of shares in a common property.
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