Partition Deed: Meaning, Format, Documents and Stamp Duty Needed

In India, most real estates are owned co-jointly due to which disputes arise between the property owners. This is a very common issue, and in order to tackle this issue, you can get a partition deed made. In simple terms, a partition deed is a document that clarifies the rights and shares of each property owner individually. There can also be a verbal deed, but it does not hold importance unless it is in written form. If you, as a co-joint property owner, are not satisfied with the deed, you can file a lawsuit. 

This is just a brief of what the partition deed is. In this post, we have discussed in detail the meaning of a partition deed, why it is required, partition deed format documents and stamp duty needed.

Meaning of Partition Deed

A partition deed is a legal document that states the rights and shares of the property owners. Once the deed is made, an owner is entitled to gift, sell or transfer the real estate ownership to any other person. In most cases, a partition deed is done when the property is under distribution and is owned co-jointly. 

Talking about the importance of a partition deed, this legal document is required to avoid disputes between the co-owners of the property. It is always recommended to get a partition deed registered so that everyone is aware of their rights and shares. 

When all the property-owners consent to the partition deed, you must follow the partition deed process mandatorily. Once done, all the co-owners can make sole and independent decisions relating to their shares of the property. If there is no mutual consent, you can file a lawsuit in court. 

When it comes to partition deed registration, you need to follow a series of steps that involve:

1. As per the Indian Registration Act Section 17, the partition deed must be registered in the sub-registrar's office in the same area where the property is located.

2. There are some states which have official websites for the same. This means that you can register the partition deed online.

3. Fill the partition need

4. Submit all the necessary documents

5. Pay registration fees and stamp duty as per Stamp Duty Act, 1899

6. The Stamp Duty charges lie somewhere between 2-3% of the total property value of a separated share.

7. If you have registered the deed online, you can download the receipt after the payment. 

Documents Needed for Partition Deed

You will need to get the list of documents stated below to get a partition deed in place:

• Preliminary documents

• Co-owners'ṣ passport size photo

• A PDE information sheet

• Duty/Registration fees/Fees e-challan duty

• Stamp duty, document handling charges

• Transferred property map

• PAN card is needed if the valuation is above Rs. 5 lakh

• Photo identity cards of all the parties involved- Voter ID card, Adhaar Card, PAN Card, Driving license

• Land Revenue Records as Khasra and Khatoni

• Image of the real estate which has been transferred

Stamp Duty on Partition Deed

Stamp duty on partition deed differs from one state to another. For instance, in Delhi, 2% of the value of the separated share of the real estate has to be paid as the Stamp Duty on the partition deed. The same rate of Stamp Duty is applicable on the registration of partition deeds in Maharashtra, along with a 1% registration charge. The manner of calculating Stamp Duty can better be explained with the help of an example.

Suppose a father, through the partition, divides his property worth Rs. 5 crores into 3 parts, keeping 40% share with himself while allocating 30% each to two of his sons. In this scenario, the stamp duty will be applicable on 60% of the property's value, i.e. Rs. 3 crores. Supposing this real estate is located in Delhi and the applicable Stamp Duty is 2%, the brothers will have to pay Rs. 6 lakhs to register the partition deed. 

Impact of Non-Registration of Partition Deed

In case the partition deed is not registered by paying the applicable registration charges and stamp duty, it will have no legal validity. Correspondingly, the unregistered partition deed will not be admissible as evidence under Section 49 of the Registration Act, 1908. 

Frequently Asked Questions (FAQs)

1. What is a partition deed?

A partition deed can be used as a legal instrument in order to divide the property among the co-owners.

2. Can the partition deed be challenged?

Yes, a partition deed can be challenged.

3. Is the verbal partition deed valid legally?

The partition deed is valid as long as a written memorandum of agreement has been signed among the family members pertaining to the partition. This document need not be duly registered. 

Also read: Everything You Need to Know about Sale Deed