SETTLEMENT DEED- A CASE STUDY

Study of Land Titling Registration document

Ar. Fathim Rashna Kallingal

M.Plan (Urban Planning) - Pursuing
Department of Architecture
National Institute of Technology, Calicut

Abstract

Registration of immovable property deed is mandatory in India for the transfer of property to be valid and
binding. There are different types of legal documents for the transfer of property within the family. The contents
of one such registered deed of immovable property is studied and described in this paper.

Keywords: Settlement deed; Immovable property; property registration

1. Introduction

The procedures for the registration of any dealings of immovable property in India are regulated by
the Transfer of Property Act 1882 and the Registration Act 1908. The Registration Act 1908 lists out
various documents, of which registration is mandatory, for validating. Among this, the registration of
immovable property is also a part. The Act has also set forth certain guidelines for the registration,
while the content of the property deed to be registered are described elsewhere. This study is an
attempt to analyse the content of a property deed registered in Kerala, taking one such deed as a
sample for the study.

2. Background Research

“A deed is a legal document signed and sealed and delivered to affect a transfer of property and to
show the legal right to possess it”. (Source: Dictionary). Some of the Property deeds, for inheritance
property, such as Sale deed, Gift deed, Partition deed, Settlement deed, Relinquishment or Release
deed, are discussed here. A Sale deed is a legal document which transfers the property ownership
through sale while a Gift deed is which transfers the ownership without any exchange of money. A
Partition deed is used when the property is divided among people, usually among the family members.
A Settlement deed is one which transfers the property ownership by the mutual agreement of the
inheritors on how the property is to be distributed. When a legal heir gives up his/her claim in an
inherited property, a Relinquishment deed is prepared.
The Transfer of Property Act 1882 provides guidelines for the transfer of immovable property and
mandates the registration of any transactions related to the property. Various stipulations have been
stated in the Registration Act 1908 regarding the time for presenting documents for registration, place

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of registration, the people presenting the documents for registration, witnesses required, presentation
and deposit of wills, the effects of registration and non-registration, fees for registration etc.

3. Methodology

A sample of the registered property document was chosen. Based on the background research, the
type of the property deed was identified. The content on each page was examined and intend
identified.

4. Observations

The registered document sample selected for the study was a Settlement deed (mentioned in the first
paragraph in regional language, Malayalam) of immovable property comprising of a house with the
surrounding plot. As prescribed in the Indian Stamp Act 1899, a non-judicial stamp paper has been
used for the document, the value of which is also complying with the act.
The first paragraph has the introduction of the transferor/owner and the transferee/heir and states the
type of deed. The writing starts with the date of registration, which is mentioned as per both
Malayalam and the solar calendar. The date is followed by the permanent address of the
transferor/owner, which starts from the Taluk to Desom and house name, father’s name, profession,
age and name. The transferee is also introduced in the same manner. Since the transferee is the son of
the transferor, instead of father’s name, the relation is mentioned.
The second paragraph describes the history of the property, wherein the previous owners of the
property and how their rights were transferred to the present owner along with the document numbers
and details corresponding to the registration, have been detailed. The para has also included a clause
stating the privileges of the Transferor to stay in and use the property until his death (life interest).
The fair value of the property is also mentioned in the same para.
The last paragraph states the reason of this transfer of the property to the transferee. The reasons
include the transferee being dependent on the transferor; the former’s desire to gift his property as a
settlement to the latter as a token of his affection towards his son which can be used for his living. The
rights and duties to use the property, pay taxes etc. are being transferred with effect from the date of
registration. The transferee can stay in the property from the same day onwards. Finally, the transferor
declares that the property is free of debts or any other claims.
The last page contains the property schedule, a table wherein the details of the property are specified.
It contains the names of district & Taluk, whether town or village, names of Amsom, Desom, type of
ownership, survey number, extend of the plot in cents and hectare. The boundary of the property is
defined in the description column of the table.
The document is signed by two witnesses in the last page. The transferor has signed with name in all
the pages.

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5. Conclusion

We can observe that all the information regarding the property is present in the document. The
proficiency in the physical description of the property without a sketch or plan is commendable. Care
has been taken to draft the document without any flaws and this has been achieved to some extent. It
is evident that many statements are included for the document to be registered as a Settlement deed,
such as the transfer of property as a gift or token of affection, etc. In a Settlement deed, the transfer is
mutually agreed upon by all inheritors, their consent is taken into consideration and this would help in
ensuring peace and harmony among the relatives. Hence in such similar context Settlement deed is
preferred over Sale deed or Gift deed.

6. Bibliography
• Transfer of Property Act, 1882
• Registration Act 1908
• The Indian Stamp Act, 1899
• Basic Understanding of Legal Deeds and Documents- The Institute of Chartered Accountants
of India
• Property disputes- Sakina Babwani, ET Bureau, The Economic Times

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