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Can HUF on property be revoked?
A friend of mine has a self-acquired property registered as a HUF+ three members of his family -viz. himself, his wife and a son, each with a share of 25%. The family consists of himself, his wife, a son and a daughter. His mother is no more. The daughter is already married. He wishes to give his and his wife’s share to grand children. As the cost of probate of a Will is very high at 3% of the value, he is in favour of a Settlement Deed favouring his grandchildren.
He can also obtain a release deed from his daughter, she having received a substantial amount during her marriage.
I have two queries:
1. Does the Law permit him to make a Settlement Deed for his and his wife’s share - each costing a maximum of Rs.10,000 + Rs 2000 in lieu of a Will?
2. Is there a provision to revoke a HUF - as to the property only?
Capt. K. Ripendran
Our panellist, Mr. R.L. Narayanan replies: Your query is not clear. However, it may be possible to execute a joint or separate settlement deeds once there is a partition of property. After partition and the shares are allotted to the parties concerned, the settlement deed can be executed by persons who will obtain the same as their individual property and such deed can be stamped and registered with prevailing stamp duty and registration charges. At present, stamp duty is 1% subject to maximum of Rs. 10,000/- and registration charges are 1% subject to maximum of Rs. 2000.
HUF cannot be revoked in respect of only one item of property. However, there can be a partial partition. The nature of shares which will be taken by the parties in the partition is slightly complicated and it will be advisable to take professional advice.
Is it a safe buy?
Recently I bought a flat in Chennai. At the time of registration I found the CMDA approved plan and constructed housing plan were different but the floors were maintained as per approval. The builder said that he would get the corporation, water, property tax and electricity in my name. Please advise whether it is safe to have that property.
Parthiban, Illinois – 60007, U.S.
Mr. Narayanan replies: You can obtain a report from an Architect or a Chartered Engineer in this regard and take a suitable decision.
No parent document
I have an apartment that I bought from the previous owner in 2003. The apartment was constructed and handed over in 1996.
I now come to know that the association does not hold the parent document for the land and that the builder/promoter never deposited this with the association while handing over the building.
What is the implication in this case and what steps can be taken to ensure that the promoter hands over the document to the association? Can he mortgage this document though the flat owners now are undivided owners of the land?
S.A.Ramesh
Chennai - 600 004
Mr. Narayanan replies: It may not be possible for the builder to create a fresh mortgage at this point of time. However, the builder may have already deposited the original title deeds with a bank or any other person and if an equitable mortgage has been validly created, then the security in respect of such a mortgage may be enforceable against the property. Consequently, there is scope for a claim arising in this nature. You may take suitable advice and minimise your risks to the maximum extent.
Getting layout copy
I am trying to purchase land in Chrompet, Chennai and applied loan for the same. But the Bank wants a land layout copy which the seller doesn’t have. What is the procedure? Can I apply for it? I approached Municipality but I was told that the land I am buying has assembled patta (meaning Govt has given the land directly) and so it would not have land layout associated with it. Please let me know whether this is true.
Also, can you let me know what documents I have to look before buying a flat?
Jaganathan Chromepet, Chennai-44.
Mr. Narayanan replies: You have to approach the CMDA if the land is within the jurisdiction of CMDA. Otherwise, you will have to apply for a copy with the Directorate of Town and Country Planning (DTCP) providing necessary particulars. As to the documents required for buying a residential Flat, this may vary on case to case basis. Please take suitable advice.
Wrongly recorded
In the registration of document for my friend, the north and south streets have been wrongly entered. i.e ) North street name for south and south street name for north. Can he go for rectification and what is the fee? M.Venkatesan,
Palayamkottai
Mr. Narayanan replies: Your friend can obtain Rectification Deed from his seller. It is advisable to register this Rectification Deed. The stamp duty and registration charges would be nominal.
Clear titles but no patta
My mother had bought a 2 1/2 ground plot in Tambaram in 1981. The titles are clear. The Patta for this land is still not available.
We have been travelling a lot and hence were not able to follow up. For the last two years, the authorities are just dragging their feet. I am not very familiar with the property dealings, as I have just started working. What is the procedure to get patta, and how can I speed it up? And how important is this Patta?
Srikanth Parthasarathy.
Mr. Narayanan replies: You can make a representation to the authorities to dispose of your application for grant of Patta. If the Patta is not granted, after lapse of a reasonable time , you will be normally in a position to obtain suitable direction from the Court to dispose of your representation by a fixed period. This may help you obtain the Patta. Considering the nature of the property in your case, Patta will be an important document.
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