Stamp Duty Is More On Conveyance Deed

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: In his last will and testament in 2001, my father bequeathed the house he had built to mother and since she has become the absolute owner of the same. My mother, who is 64 years old now, wishes to divide the property equally between herself and we three brothers. She is also willing to sell transfer the property to me if I buy out her share and the shares of my brothers for Rs 25 lakh each. However, only after these shares have been acquired by me will she agree to sell the property to me and execute either a deed of conveyance or a gift deed.

* Can my mother legally divide the property in four portions or sell/transfer the same to any one of us?

* Can we settle this by way of family settlement and submit the deed of settlement to court for ratification?

* Since my mother wants me to pay three quarters of the property’s deemed value to her and my two brothers, what will be the tax implications of such a payment?

* What sort of documentation needs to be exchanged between me and my brothers to formalise the arrangement?

* Will it be better for my brothers to sell their shares to me through separate deeds of conveyance or would it be better from the stamp duty cost saving angle to follow my mothers suggestion?
—Farook Gulab Vala

It is apparent that your mother is the absolute owner of her property and is thus fully competent to dispose of the same in the manner that she deems most suitable. Her rights of possession, disposal and alienation over the property are absolute and unquestionable.

Your mother can either sell or gift the respective portions to the beneficiaries during her life time or even bequeath them through an instrument of her last will and testament which will take effect only after her demise. It is possible to register the gift deeds and also the will.