Partition Deed: Joint ownership of a property by many people is quite common, especially if it is an immovable estate that is owned by a family.
A partition deed is mostly used by families, to divide members’ shares in inherited properties.
A partition is a division of a property held jointly by several persons so that each person gets a share and becomes the owner of the share allotted to him.
It is done by dividing the property according to the shares to which each of the parties is entitled in law as applicable to them.
Registration of Partition Deed
A partition deed is a compulsorily registerable document under Section 17 of the Registration Act, of 1908. Therefore, it is necessary to get the Partition Deed registered in the Sub Registrar’s office if it is made in relation to immovable property.
A decree given by a Court in terms of a Compromise / Settlement wherein shares of the parties are allocated by metes and bounds also needs to be registered.
Stamp Duty on a Partition Deed in Delhi
The stamp duty on Partition Deed in Delhi is payable @ 2% on the value of the shares of property partitioned which is calculated as per the applicable Circle Rate.
A single partition deed can be used for the partition of multiple properties and each property does not need to be partitioned and registered separately.
Partition with mutual consent: It is the most mature and peaceful way to divide the property.
If all the co-owners of the property have mutually agreed to divide the property, they can move forward by executing a partition deed and registering it at the local registrar’s office.
The partition deed will ensure the division of the property as per the share owned by co-owners. Once the deed is executed, co-owners will become legal owners of their respective shares and are free to sell, transfer or gift the same.
On the other hand, if the joint owners of the property are not on the same page over its division, an appropriate lawsuit should be filed in court.
This is to be followed by executing a partition deed on stamp paper specifying the share of each co-owner of the property. Moreover, the deed should be registered at the local registrar’s office to give it legal standing.
Inherited properties: The share of every co-owner in a property is inheritable and transferable. However, all the co-owners are required to state their share of investment in order to avoid conflicts, hassles in inheritance, and taxation to name a few.
The laws of inheritance play an important role in the property division process. Property laws differ for all communities including Hindus, Muslims, and Sikhs.
For example, if a person dies leaving behind his share of the property, then, his son automatically becomes the new owner of the property as per the Hindu Succession Act. Hence, it is important to study property laws before planning on dividing property.
Effect of a Partition Deed
Once a partition deed is registered, all the persons become the sole and absolute owners of their respective shares and become competent to sell, let out, gift, mortgage etc their share without the concurrence of others.
They are free to deal with their share in the property in any manner they like. They can also get the mutation done of their respective shares in the records of MCD on the basis of the registered Partition Deed.