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Property Dispute between Blood Relations


Property disputes between blood relations are very common in India. However it is a time consuming possession as well as expensive in India and also does not guarantee a satisfactory solution to the parties.


The same can be solved between the parties if it is amicably resolved between the parties. The parties have to understand that going for litigation in court is not just expensive but at the same time it is a tedious procedure. Therefore coming to a family settlement is the best solution without breaking the ties between the family.


Let’s understand the concept of family settlement


What is Family Settlement?


A family settlement is the mutual agreement between the family members regarding the distribution of property assets among themselves. Moreover, family settlement may not be related only to property but can also include movable assets such as cash, money in bank accounts, cars, bikes, jewellery etc.


Property partition through family settlement agreement


A family settlement is the mutual agreement between the family members, generally it is done through court litigation where mutual family property is splitted and distributed among the family members.


A family settlement agreement can be on a paper and it is not mandatory for parties to stamp it or register it. The format for family settlement agreement is the same as partition agreement. However, signatures of all family members are required in good faith and without any coercion or undue pressure from any family member or anyone.


What are the Advantages of Family Agreement?


Following are the advantages of having family agreement-


  • There is no need to face court litigation as it is a time consuming and expensive process.

  • Family disputes are being solved in a smoother way.


Procedure for a Family settlement Agreement


A family settlement is a peacemaking procedure where an outsider, generally a senior family member or a lawyer, assists or guides the entire family to arrive at a mutually acceptable solution regarding property dispute.


It may involve more than one legal document analyzing the property rights of each family member.


Family settlement/ Partition suit in family disputes pertaining to property


If anyone in the family wants to do a court case in a property or partition suit then the very first step is to send a legal notice to the other legal heirs of the property related to family property partition/settlement.


The legal notice must mention the shares of each legal heir, details of the property along with the required action that has to be taken.


In case of non reply or vague to the legal notice by legal heirs, then a property or a partition suit can be instituted in the court. After institution of case the court will analyze the case and eventually will allocate the individual ownership of the property to the rightful owners of the property.



Can family settlement of a self-acquired property can be done?


A self acquired property is the property that is owned by an individual with his own resources, which the individual has obtained through law of succession or is obtained through will. Therefore, partition or settlement of a self acquired property of an individual cannot be done during the lifetime of an individual who has originally obtained it. However, on the death of the individual it naturally becomes part of the ancestral property. Although an individual can allo hi/her property to anyone through will.


Legal Requirements in family settlement suit


Signing of mutual agreement is not sufficient in case of a family settlement agreement there are few legal requirements that are needed to be fulfilled and they are as follows-


  1. The settlement document has to be signed by all family members involved in the division of property.

  2. The document must be attested by two witnesses, although it is not a necessary step but it is only for safety measure.



Registration


The following step is taken to register the agreement. Section 17 of the Indian registration act, 1908 a family settlement that claims settlement of immovable property must be registered just to ensure that the partition deed is valid. The cost of stamp duty depends upon the value of the property.

What binds the family settlement/ partition deed?


The family settlement deed cannot be revoked in any case, except by a decree of court.


In what situations does a family settlement deed can be challenged in court?


The family settlement deed can be challenged in the court of law in following situations-


  • When the agreement is obtained by fraud

  • When the agreement is brought by coercion or through undue force.

  • Where there has been irregularity in execution of the deed.

  • Where there has been manipulation of facts relating to the title etc of the disputed property.


Conclusion


India witnessed various cases related to family disputes among family members. Due to this even a registered will can be challenged in court. Therefore it is always advisable to address the property dispute issue as early as possible. It is recommended to address the same with the help of an expert property lawyer, who can assist/ guide you on this in a better way. Taking help of a lawyer can help you to avoid significant mistakes while understanding and learning the law.


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