When two parties decide not to take each other to a court over a dispute and agree on a mutually beneficial arrangement based on mutual consent, this is known as a settlement. The instrument used to give legal backing to this understanding is known as a settlement deed. Settlement deeds are common in divorce, employer-employee work arrangement, and property division.
See also: Can a sale deed be cancelled?
What is settlement deed in property?
A settlement deed is a legal instrument, using which members of a family often resolve property disputes, ongoing as well as potential. Using a settlement deed, members of a family can clearly divide an asset among themselves, leaving no scope for confusion over ownership. Settlement deed can also be used to gift your share in a property to a non-member of the family.
Contents in a settlement deed
- Names of the parties
- Addresses of the parties
- Their relationships with one another if any
- Details of the property in question
- Value of the property
- Share of the property
- Terms and conditions of the settlement
- Time, date, and place of the settlement
- Names and signatures of witnesses
Settlement deed stamp duty
To be a legally binding contract, the settlement deed must be registered after payment of stamp duty and registration charges in the government records. As land is a state subject, states charge different stamp duties on registration of settlement deeds.
Stamp duty not applicable on oral family settlements: Delhi High Court
In March 2022, the Delhi High Court ruled that there was no need to pay stamp duty on family settlement deeds when they are oral in nature and have been written down only for the purpose of information.
Settlement deed sample
Family settlement among heirs of a deceased
This deed of family settlement made at ……… on this ……….. day of ……… 20…, between the heirs of ………….. (deceased) namely ……………, widow of ………….. (deceased), …………. son of ………….. (deceased), ………… daughter of ………….. (deceased), …………… son of ………….. (the predeceased second son of ………….. (deceased)), ………….. widow of the third son of ………….. (deceased).
Whereas the said ………….. (deceased) died intestate at ………….. on ……….. leaving movable and immovable assets, more particularly described in the schedule here under written.
And whereas differences and disputes have arisen amongst the legal heirs of said deceased………… as to the respective share of the heirs.
And whereas the parties here to desire and have agreed that the disputes and differences between them should be resolved amicably between the parties and litigation amongst the family members should be avoided.
NOW THIS DEED WITNESSETH AS FOLLOWS:
- In pursuance of the said agreement and in consideration of the premises, the parties aforementioned have agreed that the estate of the deceased shall be distributed amongst the heirs of the deceased as under:
1.
2.
3.
4.
5.
- The parties hereby declare that they have taken independent advice from their respective advocates, and they know the true meaning and effect of this deed.
IN WITNESS WHEREOF, the parties hereto have set and subscribed their hands to this writing the day and year first herein above written.
SCHEDULE
(Particulars of movable and immovable assets left by ………….. (Deceased))
WITNESSES:
1.
2.
Gift settlement deed among family members
THIS GIFT SETTLEMENT DEED is made and executed on this the
__________ day of ____________ month ____________ year by
Sri _____________________ S/o, D/o, W/o. _______ ,
aged about ________________ years, occupation: __________
Resident of D. No. ____________________________________________
Represented by his/her agent
Being Minor Represented by Father /Mother / Brother / Guardian etc.
Sri _________________________ S/o, D/o, W/o. ____________________ , aged about _________________ years, occupation: _______________________
Residing at __________________ under general/special
power of attorney dated _____________ registered as document
number ________ of year ________ Book IV of RO/SRO ________________ .
Hereinafter called the “SETTLER (S)” which term shall mean and include all his heirs, legal representatives, executors, administrators, and assignees etc., of the ONE PART
IN FAVOUR OF
Sri ______________ S/o, D/o, W/o. ___________ ,
aged about _________ years, occupation: ______________
Resident of D. No.
Being minor represented by Father/Mother/Brother/Guardian
Sri ______________ S/o, D/o, W/o. ___________ ,
aged about _________ years, occupation: ______________
Hereinafter called the “SETTLEE” which term shall mean and include all his heirs, legal representatives, executors, administrators, and assignees etc., of the OTHER PART
WHEREAS the SETTLER(s) herein is the absolute owner(s) and possessor of agriculture land bearing survey no. _________ admeasuring _______ acres, situated at __________ village
Gts.,
Mandal __________ district, which was inherited / having acquired the same from __________ through a sale deed / gift /gift settlement/partition/will deed registered as no. _____ of _____ S.R.O. ___________ copied in volume no. ________ at page vide pattadar passbook no. ________ title deed no. ______ issued by _________ M.R.O.
WHEREAS the Settlee is the _________ of the SETTLER and the SETTLER in lieu of natural love and affection towards the Settlee has desired to settle the said property (hereinafter referred to as the “SCHEDULE PROPERTY”) to the Settlee free of cost, and the Settlee herein has accepted the same.
NOW THIS GIFT SETTLEMENT DEED WITNESSES AS FOLLOWS:
1) The SETTLER(s) is the absolute owner and possessor of the schedule property, the SETTLER(s) is entitled to alienate by way of settlement, the SETTLER does hereby transfer, convey, and assign the schedule property in favour of the Settlee to have and to hold the same as absolute owner.
2) The SETTLER(s) is having affection, and natural love with the Settlee, as such the SETTLER has decided to settle the schedule property to the Settlee and make the Settlee absolute owner by executing this deed in her/his favour.
3) The SETTLER(s) does hereby convey and transfer all rights along with all ownership rights and title hitherto enjoyed by the SETTLER in respect of the schedule property in favour of the Settlee absolutely and for ever to hold, use and enjoy the same as owner thereof without any interference or disturbance from anybody else.
4) The SETTLER(s) herein has delivered the peaceful physical and vacant possession of the schedule property to the Settlee along with all title deeds etc.
5) The SETTLER(s) herein declares that the said property is free from all encumbrances, charges, prior sale, gift, mortgage, lien, litigations, and court attachment alike of similar government, or private encumbrances.
6) The SETTLER(s) has paid all the taxes and charges etc., up to date to the respective departments in respect of the schedule property.
7) The SETTLER(s) hereby agrees to cooperate with the Settlee to get the title of the said property changed in the name of Settlee in the revenue records.
8) The land is not in assigned land within the meaning of assigned lands (prohibition of transfers) Act of 1977and it does not belong to or under mortgage to government agencies / undertakings.
9) The SETTLER hereby declares that there are no mango trees / coconut trees/ betal leaf gardens / orange groves, or any such other gardens; that there are no mines or quarries of granites or such other valuable stones; that there are no machinery no fish ponds etc., in the lands now being transferred; that if any suppression of facts is noticed at a future date, I will be liable for prosecution as per law, besides payment of deficit duty.
10) The SETTLER(s) here by declares that he has transferred an extent of Ac. Gts. including Ac Gts. transferred through this document so far in terms of G.O M.S. No 733 Revenue (UC II) Department dated 31/10/1998.
11) The said property is situated outside the urban agglomeration; hence the urban ceiling act is not possible.
12) That the value of the schedule property hereby gifted is Rs.
13) Rule 3 Statement
SCHEDULE OF PROPERTY
All that the piece and parcel of agriculture land bearing survey no. ______ admeasuring Ac. ____ Gnts. / ____ hectors, situated in _______ village _____ mandal ______ , under the jurisdiction of sub-district _______ and registration district ______ bounded by ,
NORTH:
SOUTH:
EAST:
WEST:
More fully shown in the red colour in the plan annexed here to.
IN WITNESS WHEREOF, the SETTLER herein has signed on this Gift Settlement Deed with his/her own free will and consent on the day, month and year first above mentioned in the presence of the following witnesses.
WITNESSES:
1.
SETTLER
2.
Gift settlement deed for people other than family members
THIS GIFT SETTLEMENT DEED is made and executed on this the
___________ day of_____________ month_____________ year by
Text Box: Sri Text Box: ,
S/o, D/o, W/o. ___________________ aged about _______ years, occupation: _______________________________
Resident of D. No. ________
Represented by his / her agent
Being Minor Represented by Father / Mother / Brother / Guardian etc.
Sri, ___________________ S/o, D/o, W/o. ___________________ aged about _______ years, occupation: _______________________________
residing at _________________ under general/special
power of attorney dated _________ registered as document number_____ of year_____ Book IV of RO/SRO .
Hereinafter called the “SETTLER (S)” which term shall mean and include all his heirs, legal representatives, executors, administrators, and assignees etc., of the ONE PART
IN FAVOUR OF
Sri _______________________ S/o, D/o, W/o. _____________________
aged about _____ years, occupation: ______________
Resident of D. No.
being minor represented by Father/Mother/Brother/Guardian
Text Box: Sri S/o, D/o, W/o. aged about years, occupation:
residing at_____________
Hereinafter called the “SETTLEE” which term shall mean and include all his heirs, legal representatives, executors, administrators, and assignees etc., of the OTHER PART
WHEREAS the SETTLER(s) herein is the absolute owner(s) and possessor of agriculture land bearing survey no. __________ admeasuring_____ acres,______ Gts., situated at________________ village__________________
mandal __________________ district, which was inherited / having acquired the same from ________ through a sale deed / gift /gift settlement/partition/will deed registered as no.______ of ________ S.R.O. ________________ copied in volume no. ___________________ at page ___________ vide pattadar pass book no.________ title deed no.______ issued by______ M.R.O. WHEREAS the Settlee is the ______________ of the SETTLER and the SETTLER in lieu of natural love and affection towards the Settlee has desired to settle the said property (hereinafter referred to as the “SCHEDULE PROPERTY”) to the Settlee free of cost , and the Settlee herein has accepted the same.
NOW THIS GIFT SETTLEMENT DEED WITNESSES AS FOLLOWS:
1) The SETTLER(s) is the absolute owner and possessor of the schedule property, the SETTLER(s) is entitled to alienate by way of settlement, the SETTLER does hereby transfer, convey, and assign the schedule property in favour of the Settlee to have and to hold the same as absolute owner.
2) The SETTLER(s) is having affection and natural love with the Settlee, as such the SETTLER has decided to settle the schedule property to the Settlee and make the Settlee absolute owner by executing this Deed in her/his favour.
3) The SETTLER(s) does hereby convey and transfer all rights along with all ownership rights and title hitherto enjoyed by the SETTLER in respect of the schedule property in favour of the Settlee absolutely and for ever to hold, use and enjoy the same as owner thereof without any interference or disturbance from anybody else.
4) The SETTLER(s) herein has delivered the peaceful physical and vacant possession of the schedule property to the Settlee along with all title deeds etc.
5) The SETTLER(s) herein declares that the said property is free from all encumbrances, charges, prior sale, gift, mortgage, lien, litigations, and court attachment alike of similar government, or private encumbrances.
6) The SETTLER(s) has paid all taxes and charges etc., up to date to the respective departments in respect of the schedule property.
7) The SETTLER(s) hereby agrees to cooperate with the Settlee to get the title of the said property changed in the name of Settlee in the revenue records.
8) The land is not in assigned land within the meaning of assigned lands (prohibition of transfers) Act of 1977and it does not belong to or under mortgage to government agencies/undertakings.
9) The SETTLER hereby declares that there are no mango trees/ coconut trees/betal leaf gardens/orange groves or any such other gardens; that there are no mines or quarries of granites or such other valuable stones; that there are no machinery no fish ponds etc., in the lands now being transferred; that if any suppression of facts is noticed at a future date, I will be liable for prosecution as per law, besides payment of deficit duty.
10) The SETTLER(s) here by declares that he has transferred an extent of Ac.______ Gts. including Ac_____ Gts.
transferred through this document so far in terms of G.O M.S. No 733 Revenue (UC II) Department dated 31/10/1998.
11) The said property is situated outside the urban agglomeration hence the urban ceiling act is not possible.
12) That the value of the schedule property hereby gifted is Rs.
13) Rule 3 Statement
SCHEDULE OF PROPERTY
All that the piece and parcel of agriculture land bearing survey no.__________ admeasuring Ac.______ Gnts. /_______ hectors, situated in __________ village____________ mandal_____ ,
under the jurisdiction of sub district______ and registration district_______ bounded by,
NORTH
SOUTH
EAST
WEST
IN WITNESS WHEREOF, the SETTLER herein has signed on this Gift Settlement Deed with his/her own free will and consent on the day, month and year first above mentioned in the presence of the following witnesses.
WITNESSES:
SETTLER
Latest news
Settlement deed can’t be cancelled unilaterally: Karnataka HC
A registered settlement deed can’t be cancelled on the whim of a party, the Karnataka High Court (HC) has ruled, adding that one can approach civil courts for cancellation of such a deed.
“It is only the Court which can cancel the deed duly executed under the circumstances mentioned in Section 31 and other provisions of the Specific Relief Act,” Justice HP Sandesh said in an order dated April 19, 2024.
“Section 31 of the Specific Relief Act is very clear that the person has the discretion to approach the competent Civil Court for adjudicating the said instrument to be cancelled … The law provides for cancellation of such instrument and the same cannot be cancelled unilaterally and the very cancellation of settlement deed is without any right,” the HC said while delivering its order in the Duggatti Matada Nagaraj versus Danappa & Others case.
Parents can cancel settlement deed if children fail to provide promised care: HC
Parents are free to take back property they have given to their children through a settlement deed if they don’t get the promised care from them, the Madras High Court (HC) has ruled. However, for parents to be able to cancel the settlement deed, it must have an explicit mention that the parents gifted the property out of love and affection, the HC emphasised.
“Parents can unilaterally cancel the settlement deed if there is just a mention that it is being given to them out of love and affection…The mere mention of executing the deed out of love and affection and for the benefit of the children satisfies the requirements under The Maintenance and Welfare of Parents and Senior Citizens Act,” Justice S M Subramaniam said in his order.
FAQs
Which deed is used to register a family settlement, gift deed, or settlement deed?
A settlement deed must be used to give legal validity to a settlement reached among family members.
Are witnesses needed at the time of document registration?
The attesting witnesses are people who witness the signing of the sale or any document by the parties and sign as witnesses on the document. It is important to have respectable people as attesting witnesses. Attesting witnesses are key witnesses in the civil litigation in case any court case arises.
What is settlement?
Settlement is a disposition of movable or immovable property according to the choice of the owner.
What is the difference between sale deed and settlement deed?
Sale deed is used when a property is sold from one person to another. Settlement deed is typically used for property division among family members.
Which is better settlement deed or gift deed?
The purpose of both the instruments is different. Settlement deed is used for property division among family members. Gift deed on the other hand is used to give away your share in property without any monetray consideration.
Is settlement deed a transfer of property?
Yes, settlement deed enables transfer of property.
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