Partition Deed

When do you need a partition deed?

Co-owners enjoy limited rights over a property, as their undivided shares leave a lot of scope for uncertainty. Even though all of these people are joint owners, they are not free to rent,

sell or gift the property on their own accord, unless each party agrees to such a proposition. Basically, the consent of each co-owner is required to carry out any such transaction. The need for a partition deed arises, when it becomes important to create a clear division of shares in the property.

How is property divided under a partition deed?

If a property is being divided between two people who have invested in the purchase, the division is based on their respective contribution. If two siblings bought a property for, sayRs 1 crore and each contributed Rs 50 lakhs, the property will be divided equally between the two parties through a partition deed. If the ratio of their contribution is 60:40, the division would be in this manner. However, the law assumes each member to have an equal share in an undivided property, unless documentary proof stating otherwise is produced. In case of inherited property, co-owners would get their share in a property based on their treatment in the inheritance law governing their religion.

What happens to a property after a partition deed is executed?

Once the partition deed comes into effect, each share in the property becomes an independent entity. Each divided share of the asset gets a new title. Also, members surrender their claim in the shares that have been allocated to the other members.

For example, if Kumar, Krishnan and Mohan divide a property through a partition deed, then, Kumar and Krishnan would give up their right in the part that has been allocated to Mohan. Similarly, Mohan would give up his right in the shares allotted to Ram and Shyam. Apart from the common areas where easements rights are applicable, each one has an independent property within an estate, after its partition. This also provides them the right to deal with their share in a manner they like.

After the partition, each party must also complete the property mutation process, to make the change legally valid.

Registration and stamp duty on partition deed

To attain legal validity, a partition deed must be registered with the sub-registrar of the area in which the immovable asset is located. This is mandatory under Section 17 of the Indian registration Act, 1908. This means that the parties involved in the partition, will have to pay stamp duty charges (under the provisions of the Indian stamp Act, 1899) and registration charge, to get the partition deed registered.

For example, in Delhi, 2% of the value of the separated share of the property has to be paid as the stamp duty on a partition deed. The same rate is applicable on registration of partition deeds in Tamil nadu, along with a 1% registration charge. (However, it is not mandatory for the co-owners to register the partition deed in the state.)

Is it compulsory to register a partition deed?

government said that the process of partition of properties belonging to a Hindu Undivided Family (HUF) and the receipt thereof by a coparcener, do not fall under the definition of ‘transfer’. Consequently, it is not compulsory to register such partition deeds. Note here that in case the partition has been affected through a partition deed, which has not been registered, the deed will not be admissible as a proof in a court of law.

We prepare the partition deed Draft and send it to email &whatsapp within 3 hours, please confirm the details (its name and father name, address property details), the copy of a printed document will be sent through your address.

Partition Deed    

If requested we will fix you an appointment in online and a token will be generated from the official tnreginet website.

If requested we will also guide you in the registrar office in person.