Release Deed or Gift Deed?


 Dear Sir,

I and and my mother hold a property (Industrial gala), which I bought with my money when I was abroad. My name comes first and my mothers name comes second in all the documents. I had given a power of attorney to my father, he executed the agreement on my behalf when I was abroad, for some reason he also included my mothers name in the sale deed. Now, my mother wants her name to removed from the property since I have come back for good and she wants to relinquish her rights from the property so that in the future I should not have any problem. I have the following questions regarding how to go about getting this thing done?

1) Does she need to make a Gift deed or Release Deed? If it either of the two, can you provide me with the template for the same.

2) Does this deed needs to be registered and any stamp duty needs to be paid for the same? If stamp duty has to be paid, then what is the % that needs to be paid. What documents are needed for registration?

3) Is there any other alternative cheaper way of getting this done by way of Will etc.

I appreciate your help in this matter.

Best Regards,

Pradeep

 
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Advocate

Dear Pradeep !

it is better to mention all the facts, how  the proerty was purchaed in your name and in the name of your mother while you were  not in India and the proerties are purchased with your money, and  the second  name is nominally  included  by your father -, and a Relinquishment Deed to be executed and Registered  by you rmother in yoru name ( not Gift Deed & Not Will deed  )

Stamp Duty in AP 1 % only , however verify with  your Locla SRO !

with regards !


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The money paid was from my Indian bank account. I had given the power of attorney to my father, he signed on the agreement and got it registered on my behalf.

Do I have to pay Stamp duty on 50% of the market value of the property, since my mother by default has 50% of the share because of her name in the agreement.

The property is located in Mumbai.

Regards,

Pradeep

 
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Advocate

Dear Pradeep !

Yes-  it is 50 %  Value of the Property that is to be relinquished by your mother in your  favour - Stamp Duty on 50 % share  of your mother only !

 


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B.Sc, B.L

Mr Shetty if it is a relinquushment deed, then you have to pay the full stamp duty on the value of the share of the mother.

I advise you to get a settlement or gift done in your favour in respect of her share in the property, in which case the stamp duty is only 1% on the share of your mother. In the earlier case it would be around 8 %.

Hence, go for a gift or settlement of your mother's share in the property in your favour 

 
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B.Sc, B.L

Mr shetty

Read 3 % instead of 1 %, I stand corrected. Even this is cheaper than relinquishment. It is as good as a sale. Settlement and gift are different.

 
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 So, you recommend to go for a Gift Deed in which case the stamp duty is 3% in Mumbai, Maharashtra. What is Settlement?

Regards,

Pradeep

 
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Advocate

Dear sir,

As per Property Transfer Act, if u have buy any immovable properties with other one, on that case Released deed can be registerred in the concerned Registrar office, Released deed can be executed with consideration or without consideration, because u have purchased the property with ur mother and she can released her share in ur favour in natural love and affection without stamp duty, it is nominal stamp duty in Delhi it is Rs.100/-.

Relinquishment deed is executed after death when the owner of the property was died without WILL, on that case his/her legal heirs released their share in favour of one  person.

Furthet any inquiery you can write saisanjeevgupta@rediffmail.com  

 
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Advocate

Gift deed is ideal in this case.   In Tamilnadu, it is Rs 10,000 stamp paper and Rs 1000 registration fee.  In Karnataka, it is less than this by 50%

 

 
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Respected Sirs,

My father built a house and its in my mother's name since my father is no more.  Since my mother is in need of money as she wants to lead a independent life, she is willing/planning to sell the house.    So instead of a 3rd party buying outr house, i'm willing to purchase the house. But couple of banks do not honour this type of transaction... How do i buy the house now?  PS: i've a sibling who is ready to give NOC after taking her share... My mother is also willing to sell the house to me.

 

Thanks a ton in advance.

 
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