GIFT , MORTGAGE , PARTITION DEED
Family Settlement or Partition Deed : A family settlement is an agreement to resolve the disputes pertaining to property division among family members effectively without following the procedure of litigation. The family settlement may be oral and in that case it does not need registration. A family settlement if not written, does not require any stamping and registration whereas the written partition deed requires both registration and stamping.
Partition deed for a property is executed to divide the property among legal heirs. A partition is a division of property held by several co-owners so that each co-owner gets his due share in the property and becomes an owner of the share allotted to him/her.
Mortgage : As per The Transfer of Property Act 1882, a mortgage is the transfer of an interest in specific immoveable property for the purpose of securing the payment of money advanced or to be advanced by way of a loan, an existing or future debt, or the performance of an engagement which may give rise to a pecuniary liability. The instrument by which the transfer is affected is called a Mortgage Deed. Here the transferor is called a mortgagor and transferee is called a mortgagee.
Gift : In this form of transfer of property or assets of one person to another person, there’s no consideration of money or any other form in picture at all. By way of a gift a house, cash, jewellery, etc. can be transferred from one person to another person through a GIFT DEED.
Section 122 of the Transfer of Property Act 1882, defines a gift deed as a legal document that records the act of giving a gift and is executed between the donor and donee. Even though it is not mandatory to execute a gift deed while gifting any asset, yet it does creates a record of the gift. As gifting is a voluntary action, the gift deed should mention that the deed is made voluntarily and out of donor’s own choice. The gift deed also mentions that the gift is being made without any consideration. It may be noted that the acceptance of donee is mandatory and should be very well signed and accepted. The acceptance of gift should be during the life time of the donor.
Relinquishment of property : is the process of transferring property from one co-owner to another co-owner.
When a person dies INTESTATE i.e. without leaving a WILL, his property straight away goes to his Class 1 legal heirs.
In case there are two or more legal heirs and wish to divide the property further, they can do so by mode of Relinquishment Deed.
A relinquishment deed is a legal document through which one of the legal heirs gives up his legal rights in the inherited property to another legal heir with or without any consideration amount. The relinquishment deed needs mandatory registration for it to be valid.
Relinquishment of property can not be made in favour of a person other than co-owner and in case the relinquishment is made in favour of a person who is not a legal heir in the specific property, it will be termed as Gift.
The relinquishment deed can be revoked by the consent of both the parties involved. If the beneficiary of property is not ready to cancel the deed, the other party can approach the court for cancellation within 3 years as per the Limitation act.