Legal agrement for property prior to marriage


Hi all,
My brother and I purchased a flat together a few years back, I paid half of the purchase price and he financed other half though a bank loan. Property is registered in my brother's name. At the time of purchase my intentions were simple that my brother and in future his family can live in that flat return my half at the time he sells this flat. He wasn't married at the time of buying this flat, but he will be getting married in couple of months.

Now that is getting married I would like to make sure my share in the property is protected if in future any marital dispute arise between my brother and his going-to-be wife. I was wondering

  1. If I get a contract prepared where they acknowledge of my share in the property? That neither one of them will stake claim for my share in the property in any marital dispute.
  2. I will have primary right to request to sell this property at any time and they will have to repay me one half of the share.
  3. Primary question is would such a document have any legal standing in court of law?
  4. Is there a way to get it registered so in future no one claims that this is a false document and she never signed it?
  5. Third, if I ask them to pay a reasonable market rent for my share in the flat, would it help in proving that this is just a rental home and she not claim ownership in that flat?

 

Thanks a lot for any helpfule advice.

 

 
Reply   
 

Dear Vivek, You and your brother can execute a settlement deed stating the shares held by each of you and conditions in case of a sale. This can be registered and is a valid document giving you title to your share in the property. Best Wishes Gopikrishna Kalyanam, Advocate
 
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Thanks for your reply. Couple of more questions:

1) Can I have her would be wife also sign this deed?  * Again the flat is registered only in my brother's name*

2) What will be the cost of registering a settlement deed?

Thanks again!

 
Reply   
 
Advocate/Attorney

1.  If I get a contract prepared where they acknowledge of my share in the property? That neither one of them will stake claim for my share in the property in any marital dispute.

A) Yes you can get a contract prepared but it is again creates disputes when your brother later refused to give your half share and knocks the door of the court.  It is better to get a registered gift deed done in your favour (your half share).

2.  I will have primary right to request to sell this property at any time and they will have to repay me one half of the share.

A) Follow answer of No.1

3.  Primary question is would such a document have any legal standing in court of law?

A) It has legal standing but long disputes will go on in the courts, waste of time, waste of money and mental tension. It is better to get regd gift deed as suggested above.

4.  Is there a way to get it registered so in future no one claims that this is a false document and she never signed it?

A) Regd. Gift deed is better.

5.  Third, if I ask them to pay a reasonable market rent for my share in the flat, would it help in proving that this is just a rental home and she not claim ownership in that flat?

A) By merely taking rent from your brother will not establish that you are the legal owner.  There should be proper documentation (i.e. regd. Gift deed).

 

 

 
Reply   
 

Dear Sri. Vivek,

Your brother's wife can witness the Settlement Deed. She need not necessarily be a party to it. The Stamp and Registration charges will depend on which State you are in.

Best Wishes

 
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