Some families may want to settle property-related disputes out of court. To this effect, they may go in for a family settlement agreement which needs to be signed by all the members acknowledging that this agreement wasn’t made through fraudulent means, force and coercion from any family member. Not just property or immovable assets, shares, claims, family feuds, are also areas where a family settlement agreement is useful.
While distribution of property among coparceners in family property, dispute may arise. When such an issue arises, the parties can either file a case to ask for the help of the court to resolve the dispute or can resolve the same amicably. After the dispute related to family property has been resolved amicably the same has to be put in writing to make it binding on the parties by way of deed of settlement.
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 the distribution of the said property. It is recommended that you include all the details of the property with house number, area and even a site map of the property must be annexed with the deed.
Draft of Deed of Family Settlement for Division of Properties Left by a Deceased Between Son and Daughters Where Son Pays Money to Daughters
This Deed of family arrangement is made at ........ on this ............ day of ..……...., 20___, between A son of Shri .............. resident of .......... (hereinafter called the FIRST PARTY) and Smt. B wife of Shri ........... resident of .......... (hereinafter called the Second Party ) and Smt. C wife of Shri .............. resident of ........... (hereinafter called the Third Party) and Shri D ........ son of ....... resident of ........ (hereinafter called the Fourth Party).
WHEREAS by his will dated ............ E son of late Shri .......... resident of ................. appointed the fourth party as the executors thereof and gave his movable and immovable assets unto his children the first party, second party and the third party in equal shares.
WHEREAS The said E died on ............ and the executors obtained the probate of the said will from the .............. District Court on ..............
WHEREAS the executor has paid the funeral and testamentary expenses of the testator and all his debts which have come to his knowledge out of the estate of the testator.
WHEREAS The estate of the said E now in the hands of the executors consists of the immovable property described in the First Schedule hereunder written and the investments, particulars whereof are described in the Second and Third Schedules hereunder written respectively.
WHEREAS, the parties hereto of the first three parts are desirous that the first party shall receive the immovable property and the second party shall receive the investments specified in the Second Schedule hereunder written and that the third party shall receive the investments specified in the Third Schedule hereunder written as absolute owners.
NOW, This Deed Witnesseth As Follows:
1. The first party shall pay to each of the second and third parties, the sum of Rs. .......…….
2. On the making of payment as aforesaid, the executors shall assent to the vesting of the immovable property described in the First Schedule hereunder written in the first party as absolute owners.
3. The executors shall transfer the investment specified in Second and Third Schedules to the second and third parties respectively and they will become the absolute owners of the said investments.
4. It is expressly agreed by and between the parties hereto of the first three parts that they shall not claim any rights under the said will, save as hereinabove provided and they shall release and indemnity the executor from and against all actions, proceedings, claims and demands in respect of the assent and transfers hereinbefore agreed to be made.
In WITNESS Whereof the parties hereto have set and subscribed their hands to this writing, the day and year first hereinabove written.
The First Schedule above referred to;
(Description of immovable property)
The Second Schedule above referred to;
(Particulars of investments to be transferred to second party)
The Third Schedule above referred to;
(Particulars of investments to be transferred to third party)
Signed and delivered by the within named first party
Signed and delivered by the within named second party
Signed and delivered by the within named third party
Signed and delivered by the within named fourth party
Witnesses;
1.
2.
There are no specific documents required for the drafting and execution of a deed of settlement. However, ID proofs of the parties in order to confirm the names and permanent addresses of the parties should be scrutinised. Documents evidencing clear title of the property in question should also be examined.
There's no fixed format of a settlement deed. After a lawyer drafts it, both parties need to thoroughly read it. Any necessary adjustments should be made, and once it’s final, both parties and required witnesses sign it. The deed becomes legally binding when printed on judicial stamp paper or e-stamp paper and signed by all parties. The value of the stamp paper varies by State. Each party should then retain a signed copy of the Agreement.
A deed of settlement is a legal document which includes clauses stating the terms and conditions between the parties. It needs to be printed on a judicial / e-stamp paper of the correct value and signed by both parties. It can be modified or amended as per the terms of the agreement.
One of the first and the most important steps that you must undertake is to hire a good documentation lawyer as he/she is aware of the nitty-gritty of the legal procedures and necessary requirements involved in drafting of agreements. A lawyer would draft an agreement, better than you can yourself, for obvious reasons. A lawyer has the necessary legal knowledge and experience to handle and draft such documents. He/She will be able to guide you and draft for you according to your particular situation - the facts, circumstances and needs involved. A documentation lawyer is aware of good drafting technique and the clauses that must be included in your agreement. Hiring a good lawyer in order to draft such important legal documents is a prerequisite and will help you in more ways than one. He/She can also help with proper stamping and registration of the deed.
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