If divorced, ex-spouses will not be counted as member of the family

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I not too long ago acquired divorced and have a property whereby I’m the first proprietor and the ex-husband is co-owner, each on the settlement and mortgage paperwork. As per the petition of divorce and the divorce decree, we now have mutually agreed to award the property to me. If I need to promote it, ought to I select a switch deed or a present deed to switch full possession to my identify, or would an influence of legal professional be higher? Additionally, if my ex-husband indicators the switch deed or the present deed, how a lot stamp obligation will I’ve to pay?

—Rupal Rawal

Because you need to promote the property, the authority to promote should be current both by possession or by means of energy of legal professional. Allow us to talk about all of the three situations—present deed, switch deed or energy of legal professional.

Switch deed: Your ex-husband can switch his share of property to you by executing a deed of switch on fee of consideration by you. No sale can happen or no deed of switch may be executed with out fee of consideration by you to him. The switch should be effected by a registered and stamped instrument signed by him or on his behalf, and should be attested by at the least two witnesses.

Reward deed: Your ex-husband might execute a present deed in your favour, thereby gifting his share within the property. A present deed permits one to present his belongings or switch possession with none trade of cash. The present of immovable property should be in accordance with part 122 of the Switch of Property Act, 1882. Therefore, your ex-husband should switch his share voluntarily, with out consideration, and it should be accepted by you throughout your lifetime whereas he’s nonetheless able to giving. A present of immovable property on this case may also should be effected by a registered and stamped instrument signed by or on behalf of your ex-husband, and should be attested by at the least two witnesses.

In each of the aforesaid instances, stamp obligation will likely be payable on the deed (of switch or present) in accordance with the provisions of the stamp act relevant to the state by which the property is located. For instance, in Mumbai, the stamp obligation as per article 25 of schedule I of the Maharashtra Stamp Act, 1958, will likely be relevant. Registration fees additionally differ from state to state.

Stamp obligation on a present deed if the present is made to a member of the family, together with to a husband or spouse, is chargeable at a decrease price in some states. But when the divorce decree is remaining, then you definately and your ex-husband might not get the advantage of the decrease price.

Energy of legal professional: This may be executed by your ex-husband in favour of you to promote his share. However it isn’t a switch of property however solely a contract for execution of switch on behalf of executant. On the market of immovable property, as within the current case, the facility of legal professional needs to be sufficiently stamped and registered.

The stamp obligation on an influence of legal professional authorizing sale of immovable property in lots of states (together with Maharashtra) is similar as payable on a conveyance of immovable property (the one rebate obtainable is when the facility is given to sure stipulated members of the family, which once more won’t be the case within the current occasion).

Please additionally word that whilst you can avail the choice of getting an influence of legal professional for the sale of property out of your ex-husband, in such a case, you’ll not get possession of the property, and in future, disputes might come up as to the distribution of sale proceeds.

Launch deed: Yet one more possibility that might be thought-about is your ex-husband executing a launch deed in your favour, whereby he releases or renounces his declare on the property. Once more, the discharge should be effected by a registered and stamped instrument signed by him or on his behalf, and should be attested by at the least two witnesses. In Maharashtra, whereas the stamp obligation payable is similar as that payable on a conveyance, the quantity is payable in the marketplace worth of the share, curiosity, half or declare being renounced.

These are the choices obtainable to you. However it will be advisable to hunt particular authorized and tax counsel on this matter.

Queries and views at mintmoney@livemint.com

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