CA Mari sankar (Audit Manager & Taxation) 11 October 2016

Settlement deed -- issue

Dear Experts,

In our Settlement deed our father Mentioned a word like "we can't sell our property to others and we can sell it among our Property Heirs. Only we can enjoy the benefit of our property"

Property is transfered to Two Persons (Brothers) equally.

Can we sell the Property after inter transfer to brothers of two???

Regards

Shankar

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3 Replies

Kumar Doab (FIN) 11 October 2016

You have posted the etxract:

""we can't sell our property to others and we can sell it among our Property Heirs. Only we can enjoy the benefit of our property""

Verbatim: it allows sale to Property Heirs.

Hemant Agarwal (ha21@rediffmail.com Mumbai : 9820174108) 11 October 2016

1. A "settlement deed" is a "finality" and CANNOT be "perpetually conditional". The mentioned clause is not tenable in law. For eg. one of the legal heirs & family could expire in an accident and then the property cannot be sold /transferred to the expired legal heir, thus jinxing the whole concept of conditional "settlement deed". The conditional clause also gets jinxed IF one or both of the legal heirs go insolvent /bankrupt.

2. HOWEVER, to circumvent the same, the "entire" property can be "mutually & jointly" sold off to a third party, by joint signatures, without any further reference to the earlier "settlement deed".

Keep Smiling .... Hemant Agarwal
VISIT: https://www.maharashtra-society-help-forum.com

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CA Mari sankar (Audit Manager & Taxation) 11 October 2016

Thanks friends...

for your valuable reply