Deed of Family Settlement or Memorandum of Family Arrangement
A Deed of Family Settlement is a formal instrument that effects the division of, or creates and extinguishes rights in, immovable property among family members. It operates as an instrument of partition and is used to give legal effect to a family arrangement.
A Memorandum of Family Arrangement is a distinct document that merely records the terms of an oral partition already arrived at and acted upon by the parties. It creates no fresh rights and serves only as a written record of a pre-existing settlement.
- Governing law
- Family arrangement (Kale v. Dy. Director of Consolidation) + Registration Act 1908 ss.17/23 + Indian Stamp Act 1899 (Sch. I, Art. 45 — instrument of partition) + Transfer of Property Act 1882
- Sections
- s. 17s. 23s. 45
When this is the right filing
- When family members with a pre-existing title or claim wish to divide immovable property and require a formal, enforceable instrument to effect that division.
- When an oral partition has already been agreed upon, possession has been delivered, and the parties only need a written record of that completed arrangement.
- When unequal allotments require one party to compensate another through a money payment (owelty).
- Do not use the Deed of Family Settlement format when the parties only intend to record a past, acted-upon oral arrangement; in that case, use the Memorandum of Family Arrangement to avoid compulsory registration and ad valorem stamp duty.
What the court looks for
- Clear identification of each party's antecedent title, claim, or interest in the property to establish the validity of the family arrangement.
- A complete description of each immovable property with sufficient particulars for registration, including survey numbers, area, and four-sided boundaries.
- For a Deed of Family Settlement, proof of compulsory registration and payment of ad valorem stamp duty as required for an instrument of partition.
- For a Memorandum of Family Arrangement, recitals that clearly state the prior oral agreement and the fact that possession was already delivered, confirming no new rights are created.
The structure the court expects
The components of the filed format, in the order they appear. LexPilot fills every one of them from your facts and papers.
- 1Parties
- 2Recitals
- 3Schedule of property hereinabove referred to
- 4Testimonium
- 5Witnesses
IN WITNESS WHEREOF the Parties hereto have set and subscribed their respective hands to this Deed of Family Settlement at [place] on the day, month and year first hereinabove written, after having read and fully understood the contents hereof.
Bracketed items are filled from your case.
Frequently asked questions
What is the key difference between a Deed of Family Settlement and a Memorandum of Family Arrangement?
A Deed of Family Settlement itself creates, extinguishes, or divides rights in property and is an 'instrument of partition' requiring compulsory registration and ad valorem stamp duty. A Memorandum of Family Arrangement merely records a prior oral settlement that has already been acted upon, creating no new rights, and is therefore not compulsorily registrable and attracts only nominal stamp duty.
Is registration compulsory for a family arrangement?
Registration is compulsory if the document is a Deed of Family Settlement that effects a partition of immovable property, as it falls under Section 17(1)(b) of the Registration Act, 1908. Registration is not compulsory for a Memorandum of Family Arrangement that only records a pre-existing, acted-upon oral partition without creating new rights.
Can a minor be a party to a family settlement?
A minor cannot independently be a party. The natural or legal guardian must join the deed on behalf of the minor, and the minor's share must be adequately protected. Court sanction may also be required for the guardian to bind the minor to the arrangement.
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