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
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.
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.
Primary question is would such a document have any legal standing in court of law?
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?
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?
If you have more confident on your Question No.2 of your querry, if complied, your problem will be solved.
with regard to your payments made, only creates a loan to your brother and he will repay you, at his option. If any disputes arose between you and your brother in future, you will be entitled only for your payments, but not share on the flat at any movement.
From your query I can understand that you do not have any rights over the property because it stands in the name of your brother. Thus as an absolute owner and title holder of the property, he can do anything with the property, he can even deny your share of money put into it while purchasing the same. Instead of going in a round about way, better ask your brother either to make a gift deed or settlement deed in your favor in respect of the half share in the property as claimed by you. Do not keep worrying about the cost and other registration charges because when compared to a huge problem in the future about the undivided property in the form of his wife or other circumstances, it is better to shell out what ever is required now itself to avoid the future calamities in this regard. Act wisely now itself.
Thanks for your reply it makes sense. I was wondering since I paid money for purchase of this flat, do I have to go with Settlement Deed? Second what is the stamp fee and registration fee for settlement deed. If it would matter the flat is in Mumbai.