Settlement Deed Between Brother And Sister Residing Abroad
Property disputes are common amongst NRI families. It becomes more complicated when the family is residing far away in different countries. This has been observed more in the case of NRIs due to their physical absence for managing their properties in India. Rising expectations and better opportunities amongst families give them very little time to focus on the family property and absolutely no time for disputes, hence NRIs look for amicable ways to deal with property disputes. One of the most ideal options available is to obtain a “settlement deed”.
Understanding Settlement Deed
Settlement deed is a binding legal document between parties to settle their disputes. It can be oral or written and requires registration in the case of the latter. This document is made after mutual consent between parties and has to be free from any coercion, fraud or misinterpretation. Settlement deed can be made related to any kind of property including moveable, immovable or for cash in the bank. In the case of immovable property, the compulsory registration of deed is required.
A settlement deed between brothers and sisters is usually called a family settlement deed.
Settlement Deed By NRIs
Siblings who are Non- Resident Indians are eligible and free to make settlement deed. They can execute a deed in India as well as abroad. If it is regarding immovable property, then NRIs need to get it registered at sub-registrar’s office (depends on the location of the property) and pay stamp duty as per the value of the property.
Settlement Deed By Way Or Power of Attorney
In case, any of the brother or sister is unable to visit India for the execution of the deed, they are eligible to grant the power of execution through power of attorney. A specific power of attorney to a legal representative will execute a deed in your name in India. The POA holder can also make payment of stamp duty and registration.
Grounds Of Cancelling Of Settlement Deed
Once a settlement deed is executed, it is binding on the parties but, it can be challenged in the court of law on following grounds: -
- When the document is executed by coercion by one of the parties or by any third party.
- When there is an inherent fraud by the parties regarding ownership, rights, value or any other aspect of the property.
- If there is any misrepresentation from the parties or from their legal representatives.
- If the deed is not properly executed or if its execution goes against the basic soul of the deed.
- If both parties agree on cancellation of the settlement deed.
Family settlement deed is an amicable way for the NRIs to settle their disputes; it protects the strong Indian family ties. It is also less time consuming, hence taking the help of a property lawyer to make settlement deed can be very helpful