RAVI DESIGAN 14 June 2021
Vasundhara Singh (Student) 15 June 2021
Settlement is a kind of transfer of mainly an immovable property as per the wish of the owner of that property. These kinds of transfers are usually done among the family members or out of love without any consideration and they are governed under the Transfer of Property Act, 1882. It is important to know that settlements can be done of a self-acquired property and not ancestral therefore you have to make sure the property in question is your mother’s self-acquired property to avoid any future conflicts.
Settlement deeds can be absolute or conditional and they can either come into effect during the lifetime of the settlor or after his or her death. In case of conditional settlement, the settlor can add a condition clause in the deed that had to be fulfilled by the beneficiaries to bring the deed into effect and if the conditions are not fulfilled, the settlor can revoke the settlement.
In case of absolute settlement, there will be no conditions and the transfer of the property to the beneficiary is complete and the settlor cannot revoke the deed later on.
In your case, the settlement deed is absolute as there are no conditions attached to it but to make sure that the transfer is legal and binding, it is mandatory to get the deed registered by paying the adequate stamp duty and registration fees. If the registration is done properly, the property will be transferred to you and your sister’s name after your mother’s demise and there will be no issue in the future that might prevent you from selling or pledging or constructing a flat in that property, or dealing it with in any way you want.