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Technologist (Business owner)     08 August 2010

Is this described Oral Family Agreement valid?

I am reposting this article as there was a typographical gaffe with the prior posting. My apologies.

May I request learned lawyers here to give an opinion about the validity of the following oral family arrangement.

                                                 Beginning of the Agreement written on Stamped paper

This indenture made this the (date) between (my mother's name) w/o Sri (my father's name) on the 1st part (myself and my brothers ) of the above named ( my mother and father's name) on the 2nd, 3rd and 4th part respectively witnesseth as follows:
Whereas Nos. 1 to 4 had entered into a transaction by way of equitable mortgage by deposit on title deed in respect of the A, B, C and D schedule properties on (date)
Whereas Nos.1 to 4 had since then entered into an oral family arrangement on the ( date) to maintain peace, understanding and harmony among the as members of a family and by such family arrangement, the properties described in ABC and D schedules herein had been allotted respectively to Nos. 1 to 4, they having in the meantime applied for mutation of names in their favors to the local authority, viz. The Municipal Corporation of (city).
Whereas one item of the property described in the D schedule hereto had been gifted to Nos.1 to 4 by document No. (number) of (year) of the joint Sub Registry Office, (city) to be enjoyed as tavazi property and now is being held by them in that capacity.
Whereas difference of opinion are likely to arise among Nos1 to 4 on the mode of agreement and administration of the said schedule property. Nos. 2 to 4 do therefore hereby authorise No.1 among them (my mother's name) the mother of Nos. 2 to 4 , to keep exclusive possession of the D schedule property to collect the income therefrom to maintain the same and to utilize the surplus proceed for the benefit of Nos. 1 to 4. to which no.1 has hereby agreed and witness thereof Nos. 1 to 4 have signed this (date) at ( city name )
Signatures of all of us including my mother.
There is a memorandum attached thereto which reads as follows:


Memorandum that on this day -----------(my mother's name) , w/o(my father's name) of (Town name) has deposited with (my name), son of (my father's name) of (town name) the document of title mentioned in schedule here to as security for the repayment of the sum of Rs.----------- advanced by the said (my name) to be the said (my mother's name) with interest for the same at the rate of of Rs.---- percent per annum from the date of these presents


The Schedule above referred to:






In witness whereof I have hereunto set my hand this the ----- day of (month), year.


Signed, ( my mother's name ) (Signature)


in presence of


(my father's name)




The mortgagor above named confirms further by these presents the handling over of possession of the properties mentioned in the schedule above referred to (my name) subject to the liability of the mortgagee in possession to pay the Corporation taxes and other dues in respect of the said properties by him alone without recourse to the above named mortgagor during the subsistence of the of the above mortgage.


In witness whereof I have hereunto set my hand this the (date)


Signature of my mother.


One of my brothers says because the Family Agreement is  not regisred, it is not valid and corecing my mother to return the advanced money to nullify the above family arrangement which was in place for more than 25 years. The taxes on the alloted properties were paid in my name for more than 25 years. Kindly advice me on these matters as to whether the agreement is valid and what would be the consequence of paying property tax in my name for more than 25 years. Thank you so much.


 4 Replies

Dhara Shah (Law Officer)     09 August 2010

the agreement is valid but get it registered for safety purpose,

1 Like

Technologist (Business owner)     09 August 2010

Thanks for you comment. I was wondering how to register if one of my brothers says it is invalid? Also, my I know what is the legal implication of paying tax in my name for more than 25 years for the allotted property? Does the duration of tax payment which is more than 25 years assert my inheritance rights on the alloted properties? 

Dhara Shah (Law Officer)     11 August 2010

your inheritence right will not be asserted.

Technologist (Business owner)     12 August 2010

Will paying tax for more than 25 years mean anything to me? Also, one of brother's now acknowledges the fact that the Oral Family Arrangement is valid but he wants me to relinquish my right on one of my properties so that he could buy that particular property. I told him that he could buy with my written permission and my mother's written permission without relinquishing by purchasing it with a deed of sale. He said that wont work. Why is it so?

Kindly advise me on these matters.

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