Is family settlement required to be registered

This involves a transaction pertaining to immovable property.

Hence it is mandatory that this document should be executed by a registered document.

The unregistered document is not legally valid and the receiver/beneficiary cannot claim title to the property.

Registration of Family Settlement is necessary only if the terms of arrangement  are  reduced in writing.Since you have notarized Family Settlement ( in writing )  so it will be better if you get it registered in Sub Registrar Office to avoid any complicity in future.

Since the instrument involves immovable property registration is necessary. 

It is a compulsorly registerable document.

Registration Of Family Arrangement Necessary Only If Terms Are Reduced Into Writing, Not Where Arrangement Is Oral: 

The Delhi High Court has observed that there is no requirement to compulsorily register family settlements and to pay stamp duty for the same when such settlement is initially arrived at as an oral partition, however, later is put into writing for the purpose of information

Unregistered Family Settlement Admissible In Evidence Only If Agreement Is Confirmed With Approval Of All Family Members: However it will not confer title to the seller in future if the beneficiary would like to sell the property acquired through such settlement reduced to writing in the absence of registration.

Hi Rahul. I’m Adv. Niharika and here is my take on your query.

Following are the essentials of a valid family settlement:

a)   Bona fide settlement.—The family arrangement should be bona fide to resolve family disputes and facilitate fair and equitable allotment of properties amongst the various members of the family. 

(b)  Voluntary settlement.—The settlement must not be induced by fraud, coercion or undue influence.

 (c) Oral or written.—The family arrangements may be oral or written. No registration is necessary for an oral agreement.

 (d)  Registration.—Registration of family arrangement could be necessary only if the terms of the family arrangement are reduced into writing.

 A distinction should be made between a document containing the terms of a family arrangement and a mere memorandum prepared after the family arrangement for the purpose of the record. In such a case the memorandum itself does not create or extinguish any rights in immovable properties and therefore, not compulsorily registrable.

 In a recent judgment by the Delhi High Court, the Judge pronounced that if an understanding has been arrived at between the parties and it is only written down in a document after the settlement has been arrived at, the same would not require registration.

Antecedent title.—The members who may be parties to the family arrangement must have some antecedent title, claim or interest in the property which is acknowledged by the parties to the settlement. Even if one of the parties to the settlement has no title but under the arrangement the other party relinquishes all its claims or titles in favour of such a person and acknowledges him to be the sole owner, then the antecedent title must be assumed and the family arrangement will be upheld.

 (f)  Fair and equitable.—Even if bona fide disputes, present or possible, which may not involve legal claims are settled by a bona fide family arrangement which is fair and equitable the family arrangement is final and binding on the parties to the settlement.

I hope this answers your query and if you have further questions, you can reach me at niharikalohan@yahoo.com