A partition deed for a property is executed to divide the property among different people – usually among the family members. A partition is a division of a property held jointly by several persons, so that each person gets a share and becomes the owner of the share allotted to him. It determines the terms of division and gives title ownership to the parties.
A partition deed enables the property to be divided among the co-owners of the property such that each co-owner is allotted his share thereby making him the rightful owner of the share allotted to him. Partition deed ensures the legal division of the property which is jointly held by several people. Once the division is done as mentioned in the partition deed, each member is entitled to sell, gift or transfer his share of the property according to his needs.
A partition deed is the basic document that defines the terms and conditions upon which the partition between the joint owners of the property is going to take place. It includes the proportion of each joint owner defining the area in the property being inherited by the joint owner. It includes all the relevant terms and conditions (if any) based on which the partition Is going to take place. It may also include any provision for buying out the share of the joint owner who is giving up his/her share in the property.
DRAFT OF PARTITION
THIS DEED OF PARTITION made at (city) this ___ day of __________, 20__,BETWEEN Mr. _____________,s/o____________, R/o ____________________________ Hereinafter called First Party of the First Part, Shri ____________,s/o_______________, R/o ____________________, hereinafter called Party of the Second Part, (3) Mr. __________s/o________________, r/o_______________________, hereinafter called Party of the Third Part
WHEREAS Shri ___________ is the Karta and Manager of the joint and undivided Hindu family, carrying on the activities under the name and style of "______________________" (hereinafter referred to as "the said ___", consisting of the said ___________, his wife, the said __________, and the said ____).
AND WHEREAS the said _______ owned and possessed immediately before the partition one telephones Nos. ________and _______, __ shares in ________ Ltd. Bank balance of Rs._______ with ________, _________, _____________ Bank The HUF had also incurred certain liabilities.
AND WHEREAS the parties hereto have agreed on the ___ day of _____ to have a total partition all the assets held by the said HUF on such partition:-
___ Shares of _____________ Ltd. Rs. _______/-
___ Shares of _____________ Ltd. Rs. _______/-
Total Rs.________/-
The above-named shares will be transferred to ________ on receipt of Rs.________/-
AND WHEREAS the net capital of the said HUF immediately before the full partition is Rs.________ consisting of Rs._______ as bank balance and Rs.____/-
AND WHEREAS the parties hereto are desirous of affecting the full partition of the said HUF by donating the entire amount to a charitable trust.
NOW THIS INDENTURE WITNESSETH AND IT IS HEREBY AGREED AND DECLARED BY and between the parties hereto as under:
1. The parties hereto hereby declare that the said HUF has been fully partitioned on the ___ day of ______________.
2. The parties hereto agree to donate the entire capital of Rs.______- held by the said ___ to ___ ____________ (a public charitable trust).
3. The parties hereto agree to give further donation to _________________ as and when any refund is received from the income-tax department.
4. The said ____ has been allotted telephone number _______.
IN WITNESS WHEREOF the parties hereto have set and subscribed their respective hands on the day and year first hereinabove written.
SIGNED SEALED AND DELIVERED by the within named
1. ______________________
2. ______________________
3. ______________________
in the presence of............
WITNESSES:
1.
2.
No specific documents are required in order to draft and execute a partition deed. 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/house in question could also be examined.
No set procedure is applicable in the making of a partition deed. The property documents evidencing the ownership of such property must be examined by a lawyer thoroughly. Once the agreement has been drafted by a lawyer, it should be specifically and carefully read by all the parties to the agreement. Any necessary changes required to be made shall be carried out and once the agreement is finalised, it shall be signed by both the parties along with the requisite witnesses. The partition deed is legally binding when it is printed on judicial stamp paper/e-stamp paper and signed by all the parties. The stamp paper value depends on the particular State in which it is executed. Each party should thereafter keep a signed copy of partition deed.
A partition deed 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 all the parties. Since this agreement involves immovable property, it is required to be registered after stamping with proper value, as per State laws.
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.
How to file partition deed in my father's ancestral property?
In case of partition by mutual consent, a partition deed is to be executed by the co-owners. The same is to be registered at the office of the sub-registrar of the place where the property is situated as in case of any other registration. The applicable stamp duty under law is to be paid for each share of property. The Deed to be executed on a stamp paper. The share of each owner should be clearly and explicitly specified.
2) If the partition is not through mutual consent,a partition suit is required to be filed in the appropriate court of law.
3) Partition deed creates new owners of the property.
4) property partition is subject to inheritance law.
For further guidance please contact lawRato.
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registration of partition deed is compulsory or it is an optional?
Registration of partition deed is not compulsory until any of the party to partition is willing to sale the property.
Partition is a family settlement between family members. Hence, registration is not compulsory but it is good to get it registered for future purpose and avoid any kind of conflict.
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If regd will is made by mother to transfer her two houses ( main& out house)n a single site to her sons, for khata transfer, Pl. Let me whether partition deed is required?
Yes, Partition Deed is very much required to prove the Transfer of Title from one person to another. It is very essential to show the flow of title. But Will is different from Partition Deed. Will comes into force only after the death of a person making a Will(Testator). Whereas Partition Deed is a Legal Document in which Co-owners share the property among themselves. These are the different modes of Transfer and not the same.
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A, B & C have conveyed title of their fathers property through registered gift deed. The property is admeasuring 1200 sqft. The three decide to build 3 floor residential house and with sanctioned plan go to bank. The bank insists that a partition deed be executed for providing loan. Can A, B & C enter into partition deed demarcating their UDS and floor area as per sanctioned plan? The plan is currently in joint names (A, B & C). Whether this approach will stand legal validity to all joint owners? Whether sanctioned plan in joint names lose its validity post partition?
We all aspire to buy a house of our own at some point in life. But what if your dream home is of a greater value than you can afford? This is where you may want to consider taking a joint home loan. A joint home loan is taken by 2 or more people by clubbing their incomes to raise a loan of higher value. It will not only help you take a loan of a higher value, but will also give you tax benefits too. Let’s look at each aspect of joint home loans in detail:
A co-borrower is a person with whom you take the home loan. Each co-borrower is equally responsible to repay the loan amount. Joint home loans can be taken by as many as 6 co-borrowers.
Married couples: One can be a co-borrower with their spouse. For the lender, this is an ideal situation. In this case, both need not be co-owners of the property. However, co-ownership is always advised.
Father and son: When the father has only one heir, either of them can be the main owner of property. But if the father has more than one heir, then the lending institution would ensure that the son is the primary owner, to avoid any disputes after the demise of the father.
Father and unmarried daughter: In this case, lending institutions would ensure that the daughter is the primary owner of property before granting loan. This is done to avoid any disputes after her marriage.
Mother and unmarried daughter: This case is similar to that of father and unmarried daughter.
Brothers: They can be co-applicants in a loan provided the property is co-owned by them, they are currently living together, or are expected to live together in the new property.
What if there is a dispute between co-borrowers?
To avoid any disputes in future, ask the lender to state in the loan itself that each co-borrowers’ liability shall not exceed a given per cent of the principal amount. If the lender disagrees to such a clause, then you can draw up an agreement with all your co-borrowers on splitting the liability. Put down all the terms on a stamp paper and sign it.
How to repay a joint home loan?
A joint home loan can be repaid like a regular home loan. EMI payments can be made through a single/ joint account. A few consider giving proportionate cheques for each EMI, but this can’t be done as banks’ internal systems don’t accept 2 cheques for same EMI. You can divide the repayments with the help of postdated cheques.
As far as the bank is concerned, it doesn’t matter who contributes how much in repayment, as long as EMIs are paid timely. If there is a default in payment, it will proceed with the standard loan recovery process against all co-borrowers. Thus, before taking a joint loan, it is very important to understand what your rights and responsibilities are.
Here are a few points you must consider before taking a joint home loan :
Before you sign as a co-applicant, make sure you get a right to the property. If you are going to repay the loan, you might as well benefit from the property.
A couple taking joint loan should ideally take separate term life covers to reduce financial burden on the other in case of one’s demise.
The repayment record of a joint home loan reflects in the credit score of all co-borrowers. Default in payment by any partner can impact your eligibility for a loan in the future.
Get answers to the following questions before taking a joint home loan;
Who is responsible for making payments?
Who owns the property?
How can I get out of the loan?
What if I want to sell my share?
What happens to the property if one of us dies?
Since the lender gave loan based on a joint application, if the primary borrower defaults, files for insolvency or passes away, it becomes the co-applicant’s responsibility to repay the loan. So, you must make sure that your co-borrower is trustworthy and has the financial ability to pay off his share.
Here are a few FAQs asked by our customers, which may help you get a better understanding:
1. Should the co-owners be co-applicants?
Yes. Home loan companies insist that all co-owners be co-applicants. But the reverse is not true. All co-applicants need not necessarily be co-owners.
2. If the apartment is in my wife’s name, can I take the loan?
Yes, but you and your wife will have to be co-applicants for the loan. However, if you are neither the owner nor the co-owner of property, you will not be eligible for any tax benefits on loan repayments.
3. If my wife and I have bought a home, can we register it in either of our names or should it be registered on both our names?
If the property is jointly owned, it is advisable that it be registered in both your names.
4. My wife and I own a house with equal ownership. But I am repaying the entire loan, so can I avail full tax benefit?
Yes. You can avail full tax benefit on the interest component of your loan.
5. My wife and I own a house with ownership being 50:50. Right now I am repaying the entire loan. After a year, she will start working. Can we split the loan repayment and tax benefits then?
Yes you can. However, frequent change regarding loan repayment and tax consideration is not is not advisable as they may appear artificial or look like a way of tax avoidance.
6. If my spouse and I have not specified the percentage ownership, is it automatically taken as 50:50?
Yes, as that is the easiest assumption to make. This can be rebutted by entering into a written agreement about percentage of ownership.
7. Can one spouse claim the interest benefit and the other the principal repayment benefit?
No. Each tax benefit has to be shared in proportion to each one’s share in the loan.
8. How can my wife and I show IT department the way we have made our payments? Will the bank give us a certificate stating how much each has paid?
To show share in loan payments, you can enter into a formalized agreement with your wife stating shares of loan. This can be done on stamp paper. The bank will give you a certificate, of which you can make 2 copies and submit it in your individual IT returns along with the agreement.
9. If a home loan has been taken by a father and the loan has been sanctioned on the basis of his son’s salary can he claim tax rebate on interest payments?
According to Income Tax Act, the person who has taken the loan can claim tax rebates. So, the son can avail tax benefits only if he is a co-owner of the property.
10. If a property is owned by a woman who has no income, can her husband claim IT benefits as a co-applicant?
No, IT benefits can be availed only by property owners.
A home loan is one of the biggest liabilities one takes in a lifetime. Make sure you consider all the benefits and risks before taking a joint home loan with a trustworthy co-borrower.
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My father and brothers wrote a partition deed in 1996 (on stamps value of ₹10 and ₹170 in total) signed by witness but not registered. It was mentioned in the partition deed that a particular land shall belong to me and the same is added to my father & mother's joint account in the partition deed. I'm the only sister of my 2 brothers but not interested in equal share of the ancestral properties but just the property allocated to me in partition deed. Now since my father is no more and it was mentioned that my mother would enjoy the complete rights on the land allocated to me, can I change the title to my name with the support of mother and one brother. The other brother is opposing to it. I just have the photostat of the partition deed but one of my brothers, my mom and also the witness of partition deed support me. I've heard that the deeds made before 2005 are valid although they are unregistered. Thanks in advance for the advice. We are a Hindu family.
Yes in the given situation, partition is possible, you can file an application in the registrar's office. Or any one of the family member can apply for the partition in the Jurisdictional civil court.
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