Settlement deed
TKN
(Querist) 24 May 2016
This query is : Resolved
Hello Sir,
We are family of six. Father, mother, my wife and two children. My father own a property which has two portions. Both are rented and right now we are staying in my own flat which is far away from the property. There was a rift 5 years before and because of that my father wrote a Settlement deed in favour of his wife and me and it is registered as well. Now again the rift is starting to build and my parents want to move to their own house.
When I see the settlement deed, he has written some clauses which says that he can sell the property anytime without my consent and he is threatening me that if I dont give money to him he may sell the property. But if he moves there he is going to enjoy the one portion of rent which comes to Rs.12,000 and he has good bank balance as well. I am ready to take care of them all their life, but I see this clause is included intentionally to threaten me. I currently hold all the original docs like Settlement Deed, Parent document etc. I am attaching the content from the settlement deed here. Please let me know what can I do to prevent him from selling the property.
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Text from Settlement Deed
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Settlor – Father
Settlee 1 – Mother
Settlee 2 – Son (Myself)
1. That in consideration of natural love and affection the Settlor hereby settles, transfers and assigns all rights, title and interest whatsoever in the property described in Schedule-B unto his wife Settlee1 (being one of the Settlee herein) fully and absolutely up to her life-time with absolute powers of alienation and thereafter (i.e., upon the lifetime of Settlee1) in the event of the said Settlee1 dying intestate, to his son Settlee2 (being the other Settlee) to the exclusion of any other person.
2. That this settlement shall take effect only and immediately upon the life time of the Settlor up to which date the Settlor shall continue to enjoy the Schedule B property as its sole, absolute and full owner with absolute powers of alienation.
3. That in the event of the Settlor’s wife Settlee1 pre-deceasing the Settlor, the said property shall vest in favour of the Settlor’s son Settlee2 upon the life time of the Settlor up to which date the Settlor shall continue to enjoy the Schedule B property as its sole, absolute and full owner with absolute powers of alienation.
4. That the Settlees shall peaceably hold, use and enjoy the said property described in Schedule-B as their own property in the manner provide above, together with all rights and interests thereon and including easementary rights and the amenities provided therein, all fixtures and fittings without any hindrance, interruption, claim or demand by or any other person whomsoever
5. That all persons claiming under the Settlor shall and will from time to time upon the request and at the cost of Settlees do and execute or cause to be done and executed all such acts, deeds and things whatsoever for further and more perfectly assuring the title of the property described in Schedule-B and every part thereof unto the Settlees according to the true intent and meaning of these presents as shall or may be reasonably required
6. And it is hereby further declared that the property set out in Schedule-B settled herein is free from lis pendens, all claims or demands and the Settlor has not done anything whereby the said property may be subject to any attachment or lien of any court or person whatsoever.
Thanks
RAVI K GOUD
(Expert) 25 May 2016
Is this property devolved on your father by way succession or self acquired?
If it is self acquired you have nothing to do. This settlement is like a will and only Settlees get the property only after happening of the events or conditions in the settlement.
P. Venu
(Expert) 25 May 2016
Yes, the deed is more or less like a Will, but on more favourable terms.
Rajendra K Goyal
(Expert) 25 May 2016
Discuss with local lawyer, show him all related documents.
T. Kalaiselvan, Advocate
(Expert) 29 May 2016
The condition no.3 that too specifically this line"the Settlor shall continue to enjoy the Schedule B property as its sole, absolute and full owner with absolute powers of alienation." is the only thing which comes as a hurdle and he may speak arrogantly about this.
As per transfer of property act once a settlement is made it is deemed to be a transfer and the settlee shall acquire the property after the condition of lifetime interest of the settler, therefore this particular word called alienation cannot appear in the recital of this settlement deed.
Take the help of a local lawyer and proceed as per his advise who shall render the same after scrutinising all the relevant documents.
TKN
(Querist) 30 May 2016
Hello All,
Thanks for spending your time in responding to me.
I verified with a local lawyer and he is suggesting me to do a Rectification deed on top of the Settlement deed and register it.
The "Power of alienation" on the part of Settlor and Settlee-1 (clause 1,2 & 3) can be removed using the rectification deed, so that only selling or mortgaging rights for settlor and settlee-1 will be removed, they can still enjoy the property till their life time.
Please suggest me whether this would a viable solution.
