Reward deed could be executed to switch share of property

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My youthful brother and I’ve inherited a home from our father and collectively personal it now. Nonetheless, I need to reward my share (50%) of the home to my brother. How do I am going about it?

—Rajesh Kuntal

Whereas answering the question, we’re assuming that the home was the non-public asset of your father (and never a joint household property) and that the home has duly vested in you and your brother in equal shares (pursuant to the Will or on intestacy succession).

When you want to switch your share in the home to your brother, you might achieve this by executing a present deed in favour of your brother with respect to your half share in the home.

A present of immovable property must be in accordance with part 122 of the Switch of Property Act, 1882. For the reward to be legitimate, the switch should be effected by a registered and stamped instrument signed by you, accepted by your brother and attested by a minimum of two witnesses.

Stamp obligation must be paid on the deed of reward previous to its execution, as per the related legal guidelines of the state the place the property is located and the place the deed of reward is executed.

In some states, the stamp obligation is decrease within the case of reward to a detailed relative. For instance, beneath the Maharashtra Stamp Act, 1958, the reward deed must be stamped beneath article 34 of Schedule 1. Because the reward deed is in favour of your brother, the stated reward deed would fall beneath the primary proviso of the above-mentioned article, which gives that the stamp obligation chargeable could be 2% of the market worth (prepared reckoner worth) of the property. Nonetheless, stamp obligation differs from state to state, so please verify the stamp obligation implications along with your native lawyer.

In your case, since your brother already owns a half share of the home, and solely your half of the home might be gifted to him, the stamp obligation payable will solely be on half of the market worth of the property.

Additional, the reward deed would must be registered inside a interval of 4 months from the date of execution as per the relevant provisions of the Registration Act, 1908, with the relevant sub-registrar of assurances since the subject material of the reward deed could be immovable property. Relying upon the state during which the property is located, relevant registration expenses may even must be paid on the time of registering the reward deed.

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