- 1 year ago
Get comprehensive information about types of deeds in India and their significance for NRIs with Assistant Vice President Akriti Singh from NRI Legal Services.
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00:00Greetings everyone. We warmly welcome you all to our today's Ask Me Anything session.
00:08I am Advocate Akriti Singh, Assistant Vice President at NRI Legal Services.
00:13So our today's topic is insights on types of deeds and its significance for NRIs.
00:19But this session is also very useful for our Indian residents.
00:23So before we begin, I would like to ask my colleague to introduce herself.
00:28Hello everyone, this is Advocate Alisha Monga, Senior Legal Associate with NRI Legal Services.
00:34So we will be answering all your queries today as much as we can.
00:38And don't worry if you miss on to any query, we will answer it subsequently through our online portals.
00:43So let's begin with this enlightening and informative session for today.
00:49So feel free to ask anything which piques your curiosity or interests you.
00:54We are here to welcome all your questions.
00:56So our today's topic is basically about types of deeds.
01:00When we talk about for example NRIs, non-resident Indians.
01:04They have immovable and movable assets in India.
01:07For example, land, houses, shops, so many other assets in India.
01:12And it is very important to execute a certain type of deed which is useful for you and as per your wishes.
01:19And so that you do not have to face any sort of problem in the future.
01:24So we will tell you all the nuances with this topic.
01:28So basically, what helps you in executing a proper deed?
01:33Firstly, it ensures a proper ownership record.
01:36Secondly, future disputes are avoided.
01:39Thirdly, it ensures a validity in the eyes of law.
01:44So whenever you are entering into a deed, it is also very important that you do not end up signing a document.
01:50You should also get it duly registered so that you can safeguard your rights in the property.
01:56Right, Alisha?
01:57He is talking about registration.
01:58So one such client, I remember, he came to us with an unregistered sale deed.
02:03So we clearly told him that it is invalid in the eyes of law.
02:07So to avoid such circumstances, you should always hire an expert, you know, in executing such deeds.
02:14Absolutely, Alisha.
02:15And I think you all must have heard these terms like sale deed, release deed and gift deeds.
02:20So there are certain nuances and compliance attached to these deeds.
02:24And before I start discussing these types of deeds through our queries, I want you to share a certain breakup of components.
02:32What all should entail in a deed?
02:34And I think you should shed some light onto it.
02:36For sure, I will do that.
02:37So basically, a deed should contain, when I talk about deed, a sale deed, transfer deed, a gift deed,
02:43they should contain the names of the parties involved such as the buyer, the seller, the purchaser, the grantor, guarantee in a gift deed, donor and a donor.
02:54So all such details should be there in the deed.
02:57Secondly, there should be the description of the property.
03:01By description, I mean number that the property is bearing, the measurements of the property, location of the property, right?
03:09And any such distinguishing features that the property has.
03:13Again, you remember that matter we had.
03:16So in that sale deed, certain incorrect khasra numbers were mentioned.
03:20So the opposite party raised an objection.
03:23Subsequently, we even had to amend that pleadings, right?
03:26And it caused a lot of delay.
03:28So to avoid such delays and complications, you should always bear in mind that always hire an expert who can guide you.
03:36And you should mention the exact description of the property in the sale deed.
03:40And not to forget about the consideration.
03:43So when I say consideration, it actually means the monetary exchange, you know, which entails in such deed, sale deed or transfer deed, etc.
03:50So they should also contain the amount exchange, the medium of exchange.
03:55For example, it was done online, through cheque, through cash, etc.
04:00I think there are certain more components to deeds.
04:03Would you like to add some light?
04:05Would you like to add certain points?
04:06I think Alisha, you have covered the parties involved, consideration and the description of property.
04:11I think, yes, terms and conditions.
04:13When we talk about terms and conditions, you should note that everything such as rights and liabilities should be explicitly mentioned in a deed.
04:23For example, there is a Builder Buyer Agreement.
04:26And there is no clause pertaining to the handing over of possession of the property.
04:31So that timeline, that specific timeline is very crucial.
04:34So such clauses, whether it is a payment of rent, whether it is a monetary consideration,
04:39whether it is handing over of a possession, anything which is important for your property and your rights.
04:45So all such clauses basically secures your rights in the property.
04:49It safeguards you, right?
04:50So clauses are very important.
04:52And I think last one is signatures and seals.
04:55When you talk about signatures, your signature should be similar on each page.
04:58I think I would also like to quote one of our examples from our own clients where the signature on the deed were different on each page.
05:06So when such document is challenged in the court of law, your document becomes really weak.
05:11So your signature should be similar on each page.
05:14Secondly, when we talk about seals, for example, there is a stamp of a sub-registrar.
05:18Or even our witnesses, their signs, notary public, everything should be very precise.
05:25So that there is no ambiguity or discrepancy in a document.
05:28Exactly.
05:29So I think that covers the call, no?
05:30Yeah.
05:31And I can see a question pop up.
05:33So it says, Hi, I am from USA and I want to sell my property situated in Delhi.
05:38Should I and the buyer is required to be present at the time of registration?
05:43I will take up this question.
05:44Yeah.
05:45Thank you advocate Kashyap.
05:47Firstly, you must understand.
05:50When we are going to execute a sale deed, the buyer as well as the seller, both needs to
05:57remain present before the concerned sub-registrar.
06:00It is very, very essential because the registrar will also ensure the authenticity of the document
06:06which is being executed.
06:07And for example, in cases of NRIs, you are unable to come to India.
06:12You can give us power of attorney.
06:14Our firm aids in such services and helps NRIs to execute a hassle-free process.
06:20So that attorney holder can appear on behalf of the parties, that is buyer and seller,
06:25and can execute a deed.
06:27I think this is the most common type of deed which is used in India.
06:32So you should all be very aware of what all it contains.
06:35As we said, the consideration amount, the description of the property, everything.
06:39But specifically, the tax obligations.
06:43You should know what all implications are there.
06:46And in case of NRIs, when you are going to use the sale proceeds, basically you are going
06:52to repatriate such sale proceeds, you should always make sure that it is according to the
07:00RBI guidelines, that is Reserve Bank of India.
07:02And I think even when you enter into a sale deed, there should be a proper title check
07:07that who was the previous owner.
07:09Right?
07:10Exactly.
07:11You should get due diligence done for your property.
07:13Yes.
07:14That is very important so that you can check on to the incumbrances, any lien, any mortgage
07:18on the property, any tax which is due.
07:20And so that you can comply with the local laws properly.
07:24So I think due diligence is very important.
07:26Exactly.
07:27Do we have any further questions?
07:29We will see another question.
07:31Just a second.
07:32We are just looking for a question.
07:33Yes.
07:34I can see here.
07:35So another question is from Priyanka which says, hello, I am from London.
07:40My cousin's father is very ill and eight and he wants to make a will.
07:45Is it compulsory to register a will?
07:47Well, will is a very burning topic.
07:49Yeah, absolutely.
07:50We keep on receiving so many queries related to will.
07:52So I would like to take up this question.
07:55So Priyanka, will, firstly I would like to define as to what a will is.
07:59Will is a legal document, you know, in which a one owner transfer, you know, a will is a
08:05document in which a person, right, specifies as to after their death, how their assets,
08:11their properties, movable, immovable will be distributed.
08:15Right.
08:16So while executing a will, one should always ensure that they are, you know, executing the
08:20will in accordance with the Indian laws.
08:22So as to prevent any future disputes among the surviving legal heirs.
08:26Right.
08:27And now coming on to your question, whether the will should be registered, although it is
08:31not mandatory, right, but it is highly recommended that one should always get the will registered.
08:38In case, you know, the will is lost or misplaced.
08:41Yeah.
08:42Firstly, you can procure a certified copy from the sub-registrar's office.
08:45And secondly, you know, if an unregistered will is challenged in the court of law.
08:50So tomorrow, you know, you never know that the opposite side can shred an unregistered
08:55will into pieces.
08:56That's absolutely right.
08:57Yeah.
08:58I can see another question, which says, hi, I want to cancel the attorney I gave to my
09:05cousin in India as I'm residing in USA.
09:08When does a general power of attorney get cancelled?
09:11So, Ms. Kamal Ji, basically, when a general power of attorney is cancelled, when a person,
09:20executant, principal executes a revocation deed, there is a proper process to it.
09:26If you execute a revocation deed, you revoke all the powers you have given to a attorney
09:31holder.
09:32That's your cousin in your case.
09:33You can execute a revocation deed followed by a proper publication, a notice is sent to
09:39the attorney holder, and then a deed is registered in the office of concerned officer, and you
09:44can revoke that particular deed.
09:45But I think for all the viewers, I must share this information that either you can revoke a
09:52POA through a, that is power of attorney through a proper process of revocation deed, or for
09:57example, in case the executant dies, the power of attorney gets automatically cancelled.
10:02But there are specific reasons and circumstances when you should genuinely revoke a power of attorney,
10:08when you no longer trust the person to act on your behalf.
10:12Secondly, if the circumstances are not favourable, for example, the attorney holder is not residing
10:17in that location, he has relocated, or even the purpose of the power of attorney has been
10:22met.
10:23If you have given an attorney for a sale purpose, sale has been completed.
10:26I think after that you should revoke the power of attorney actually.
10:28There is no point to keep on using it.
10:31Right?
10:32Yes, absolutely.
10:33And I see another question which says, Hi, my mother is 65 years old, NRI.
10:39She is unwell.
10:40She wishes to gift her house to me and not to my brother.
10:44Is it possible?
10:45Well, Mr. Sunil, first of all, thank you for your question.
10:49It is absolutely possible only if this house of your mother is self acquired and not inherited
10:55or ancestral.
10:56That's true.
10:57Right?
10:58Because your brother has, you know, birthright in the ancestral property.
11:02And for executing such, you know, the house in your favour only by excluding your brother,
11:09your mother should execute a gift deed.
11:11So a gift deed is a document in which, you know, one owner transfers the property into the
11:17name of another owner and this is usually done in the blood relations, you know, out of
11:21love and affection and as a gesture of goodwill.
11:24And I believe you should also keep in mind that while executing a gift deed, you know,
11:29certain amount of stamp duty is applicable.
11:32Right?
11:33So you should not, never skip that.
11:35And I think so many people opt for gift deed.
11:37Exactly.
11:38So that you get, so that one can transfer their asset during their aliveness because
11:42will create a lot of hindrances in future.
11:44Exactly.
11:45So that's the most used deed.
11:46Right.
11:47So we are actually receiving of many questions during this session.
11:52So another question is, Namaste, I am based in UK and I want to rent out my showroom in
11:58India.
11:59Which document to prepare for my property?
12:01I think showroom, they are referring to commercial property.
12:03Yes.
12:04Yes.
12:05And please understand when you want to rent out your property, whether it is a commercial
12:11one, there is a proper document which is known as a lease deed.
12:14Lease deed has a proper duration and expiry.
12:17Along with that, you can mention all the details of duration, lease period, the rent amount,
12:23its enhancement year by year.
12:25So lease deed is a very important and it is very apt in your situation.
12:30You should enter into a lease deed where lesser and lessee that is property owner and
12:34tenant enter into this deed so that that can be subsequently registered.
12:38And in case you face any trouble in future, so you can use that registered deed to evict
12:43that tenant or to claim the recovery of your rent as well.
12:46So lease deed is very, very important in such cases.
12:49And I think again for NRIs who are sitting abroad, they can use such deeds to generate
12:56rental income.
12:57But again, the tax obligations are also there and any withholding in India should be I think
13:04considered while executing such deed.
13:07And once you are a genuine, I think a taxpayer and properly executing such deed, this will end
13:14up into a very genuine transaction and you won't face any problems in future.
13:18Right.
13:19So I see another question which says good evening and thank you for these sessions.
13:28My father owns a chunk of land in Buj, Bujurat.
13:31I am living in UK with him and he wants to get a release deed done.
13:36What are the steps?
13:37So can you tell them the steps to be done for the release deed?
13:40First of all, thank you for liking our sessions.
13:43And when we talk about release deed, I think I will just a little bit reframe your question
13:47here.
13:48If you are one of the co-owners in the property or land, then you can execute a release deed.
13:53Your father can release that portion which belongs to him in favour of another party,
13:58whether it is you or your sibling, anybody.
14:01So if you are not one of the co-owners, then release deed cannot be done.
14:06Then he can execute a gift deed, I think.
14:08But release deed is something which is done between the co-owners, the existing co-owners.
14:13So that once shared, one of the share can get transferred to the other party who is also
14:18current owner in the land.
14:20And I think they have also asked for the steps.
14:23When we talk about steps, you draft a release deed, obviously take expert advice properly,
14:30draft a release deed.
14:31Both the parties, releaser and the releasee, both the parties should remain present before
14:36the concerned officer again.
14:37Or this process can also be executed through a tourney holder.
14:40There will be proper witnesses, signatures.
14:42But I think this is a very basic steps which we are sharing.
14:46The most important part is, when you get this release deed registered, subsequently you
14:51should get the records of revenue updated.
14:54That release deed has been...
14:56Most important.
14:57Yes, yes.
14:58It is very, very important.
14:59Because without that, you won't be considered as the current owner in the revenue department
15:03or municipal body, wherever your property is situated.
15:06So the second step is more important.
15:08Yes, correct.
15:10And I...
15:13We have another question up which says, hi everyone.
15:16I am going for a settlement for the properties involved.
15:19Is registration required?
15:21I think she is referring to the properties of a family, right?
15:25Okay.
15:26I think this is similar to a partition deed or family settlement deed.
15:29A settlement can be of a share in the land or maybe the movable assets or even FDRs
15:37lying in the accounts.
15:39It can be anything.
15:40So when we talk about such settlement deeds, if it is done amicably, it is very good.
15:45Exactly.
15:46All the parties should sit together and decide which share belongs to which party.
15:50For example, you have a house and you are entering into a partition deed amicably with
15:54your family.
15:55You can decide which floor will be given to which family member.
15:58If it is a chunk of land, then a north direction or a south direction.
16:01Exactly.
16:02You can divide that portion accordingly.
16:04But in case, I will just add up, your family is not cooperating in such partition.
16:10Yes.
16:11You can opt for a suit in the court of law, which is known as suit for partition.
16:15Because your rights are very important and you can claim it in any way, through court
16:19or through amicable procedure.
16:21Yes.
16:22Definitely.
16:23If you know, as my colleague said that if the family is not ready for a settlement amicably,
16:28then you should approach the court of law.
16:29Absolutely.
16:30And the court will, you know, either auction your property, either sale it out and then
16:34the sale, you know, the monies will be distributed among the parties or it will, you know, portion,
16:39like partition the property, like the specific portions will be given to each party.
16:42Each party.
16:43Yes.
16:44Yes.
16:47So we have another question up.
16:49There's a lot of questions we are receiving in this session.
16:52So that says, I want to give attorney to my uncle for sale of my land.
16:57Do we need to get it registered?
16:59Right.
17:00Well, yes, Mr. Ashwani, if you are not physically present in the jurisdiction where you wish to
17:05sale your property, you can execute the power of attorney in your uncle's favor.
17:10Right.
17:11However, please keep in mind that, you know, this document will give all the powers, right?
17:17And will authorize your uncle to act on your behalf in relation to the property matters.
17:22And should you get it registered?
17:23Well, yes, it is highly recommended that you should get the power of attorney registered
17:28as well as my colleague just explained, you should also get it revoked once the assigned
17:33task of sales are completed, you know, so as to further avoid any misuse or any discrepancy
17:39in the sale of such property.
17:41Right.
17:42Yeah.
17:45So we have, I can see another question up, which says, my father's side of the family wants
17:51to divide their share on the property.
17:53Okay.
17:54Can you enlighten us about the partition deed?
17:56Yeah.
17:57As I just mentioned the previous question.
17:58Yeah.
17:59Partition deed again, a document where you separate out the share of each party involved.
18:04And generally in such cases, all are co-owners.
18:07Sometime there are 20, 30, multiple owners, aunts, uncles, siblings, and you need your own
18:14share.
18:15And I think especially who all are sitting abroad, they want to separate out their share because
18:19they can transact that portion of property accordingly.
18:21They can sell it, they can rent it.
18:23So it is very important.
18:24And once you have such joint, huge properties, you should separate out your own share.
18:28So then you can use it according to your wishes in future.
18:31So it is very, very essential.
18:32So as I mentioned, partition deed is again, a very important document, which should be properly
18:37executed.
18:38And then it becomes valid in the eyes of law.
18:40And you can use it in future to use it any manner, I think, as I said earlier.
18:45Yes, exactly.
18:46As I can see, we have missed out a question, yeah, in the past, which says, can you tell
18:55us what are the steps to be taken after execution of all the deeds?
18:59Okay.
19:00All right.
19:01When you say all the deeds, I will cover the main deeds like sale deed, transfer deed, gift
19:04deed, right?
19:05I think it's a very good question.
19:06Yeah, actually.
19:07So what are the steps, basic steps I would say, firstly is to get your deeds registered,
19:13as we already explained, right, in the beginning, that it is very important for you to get
19:18your transfer deed or sale deed registered with the concerns of the registrar's office,
19:23right?
19:24Because registrations, you know, aware of the public that, you know, this property has
19:28been now being transferred from this person to this person.
19:31Yes.
19:32And also, you know, it establishes the rights of the new owner.
19:35Right.
19:36And after doing this, what you should do is you should immediately update the revenue
19:40records, right?
19:41It is very important that, you know, the new owner's name should be reflecting on in the
19:46revenue records, right?
19:47Such as you should update the Jamabandis, the Khatani's and in Gujarat, you should also,
19:53I think, do...
19:54There are particular village forms.
19:56Yes.
19:57And the property cards.
19:58Exactly.
19:59So after that is done, as a third step, you should also consider the tax implications,
20:04right?
20:05So both the parties, the buyer as well as the, you know, seller, right?
20:10Should keep in mind that there are certain tax implications imposed on such transaction,
20:14right?
20:15So you should consult your tax advisor and should ensure compliance with the tax laws.
20:21And as a last step of all the deeds, what you should do is you should maintain a legal
20:26documentation, right?
20:27That is the chain of the ownership, the record of the previous owners, right?
20:31The municipal tax received, electricity, water bills, and the agreement to sell, etc.
20:36The list goes on and on, right?
20:38Absolutely.
20:39So this is, you know, just to, for the future reference and to also mitigate any potential,
20:45you know, future risk.
20:46Yes.
20:47So that you should do.
20:48I think documents also vary from state to state.
20:50Yeah.
20:51So ownership documents are different.
20:53Exactly.
20:54For the time being, I am not able to see any new question, but then we would like to enlighten
20:59the public about sale deed, right?
21:01Yes.
21:02Yeah.
21:03You should do that.
21:04I mentioned about sale deeds, most used document in our entire, I think, jurisdictions
21:11and all over India.
21:12So basically in sale deeds, as you said, compliance is very important.
21:16How you check your record, how due diligence is done, how title ownership documents are verified.
21:22You go to the concerned official, dig out the documents, which is a fairly simple process.
21:27And then you can ascertain who is the current owner to avoid any future disputes and you don't
21:32end up in a legal suit, right?
21:33Exactly.
21:34So is there any more further questions?
21:36Yeah.
21:37I can see another question.
21:38Hello, I wish to gift my daughter some amount of money.
21:41Okay.
21:42Shall I execute a gift deed and what are the essentials of a gift deed?
21:46So as we just told you that, yes, you can absolutely, you can gift, you know, some amount
21:50of money to your daughter, right?
21:52You can execute a gift deed and the essentials of the gift deed, as I told you that, you know,
21:56the names of the parties must involve the amount of the money that you are gifting your
22:00daughter to, right?
22:01The reason for such gift, which is obviously, you know, out of love and affection, as a good
22:06will jester, then the mode of payment, you know, how you are gifting it through online,
22:11you know, mediums or through cash or cheque, you know.
22:15So these are the basic essentials.
22:17And for more insight on it, you should definitely, you know, you can approach our legal form and
22:22we can guide you further on.
22:23And I think in gift deed, specifically, the stamp duties are involved.
22:26Exactly.
22:27In each state.
22:28So stamp duty affixation, in case of females, it is lesser than men.
22:32But in each state, there is a defined set of stamp duty applicable as per the value of
22:37the property or maybe the asset.
22:39For example, you are gifting an immovable property, then a stamp duty will be affixed.
22:43Yes.
22:44And I think while we are on it, we are missing, you know, a very important deed that I would
22:50like to state here is a mortgage deed, right?
22:53Yes.
22:54So what is a mortgage deed?
22:56So mortgage deed is a deed in which, you know, the owner of the property pledges his property
23:02as security for a loan amount, right?
23:05Yes.
23:06And this type of deed basically contains the loan amount, right?
23:10The interest rate, the payment plan, right?
23:13And it also contains the rights and responsibilities of both the lender as well as the borrower, right?
23:20So I would again now cite here an example, right, that we face.
23:23So one of our client's brother, you know, fraudulently got a mortgage deed signed from his brother,
23:30who was an NRI.
23:31And just because, you know, he was not unable to understand the regional language that is
23:36Punjabi.
23:37Yes.
23:38Right?
23:39So not only mortgage deed, whenever you are entering into any type of agreement or executing
23:42any deed, you know, you should make sure that you are able to understand the regional
23:46language.
23:47Very important.
23:48And if not, it is very important that you first get it translated, right?
23:52And to the help of an expert, understand the contents of that deed and then only sign
23:57it.
23:58Yes.
23:59Right?
24:00Knowing the language is also very important.
24:01Exactly.
24:02Yes.
24:03That's it for now.
24:05We'll cover, sale deed we've covered, right?
24:08Yes, we have covered sale deed, mortgage deed, I think most of the questions are covered.
24:12Yes.
24:13Will also we've covered.
24:15Can you please check and refresh if there are any further questions?
24:18Yes.
24:19So that we can answer all of them before we wind up the session.
24:24Yes.
24:29I think we have one question here.
24:32I think we'll just refresh.
24:34It's actually good to know that we are getting so many questions back to back.
24:40Yeah.
24:41Yeah.
24:42So.
24:43Yes.
24:44Yeah.
24:45Yeah.
24:46You can check.
24:47Yeah.
24:48I think yeah.
24:49We have covered up.
24:50So we have covered up all the I think questions and in case you have any further questions,
24:57you can definitely write us at query at the returnerilegalservices.com.
25:01And before I wind up this entire topic, let me tell you last few things that whether it
25:06is buying, selling, leasing, anything.
25:09When you enter into a proper transaction, it ensures that you have done a very authentic
25:16deed, which avoids any hassle in future.
25:19And such smooth transactions not only help you in future, but safeguards your right in
25:24totality.
25:25Right.
25:26So take advice from the experts.
25:29Follow all the guidelines in whichever state you are so that you do not end up into a dispute
25:35where such deeds are challenged.
25:37So it is very, very important.
25:38I think.
25:39And while understanding such deeds, I hope that this session was helpful for all the people
25:44and we are here to help you and we will be back with another ask me anything session very
25:51soon.
25:52Thank you viewers.
25:53Yes.
25:54Do comment, like and subscribe our channel for more such enlightening sessions.
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