Family Property Disputes Settlement

From low income family to blue collar families, property dispute has been a common occurrence in India. Taking this type of dispute to the court will not only be a time-consuming process but also very expensive. Family settlement is the best solution for this.

Under family settlement, family members mutually work out, in what proportion should property be distributed.

The properties in dispute can be real estate, jewellery or money in bank accounts.

Also family settlement (out of court settlement) will be more harmonious way to resolve the issues.

A reliable third person, preferably a family lawyer or a senior member of the family can help to arrive at an amicable solution.

A single or series of documents may be set out. For example, 3 brothers & 2 sisters have disputes over a land, a house & a bank account balance. They can amicably settle for these moveable / immoveable properties by a series of documents.

To bring about the actual transfer / share among the parties, separate transfer of property documents needs to be prepared apart from family settlement agreement.

While settling the disputes / sharing the properties, Income Tax / Capital Gains Tax should be taken into consideration.

To make the settlement agreement legally valid, it should be signed by all the family members, preferably with 2 witnesses.

Further, the settlement agreement should be registered along with stamp duty which depends upon the value of the property.

Improper execution, agreement by fraud, coercion or misrepresentation of facts regarding the title of the dispute will lead to challenging the agreement in the court of law.

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