Division of property held jointly by co-owners is known as partition. When a property is
divided each member becomes sole owner of his/her portion of the property. Each
divided property gets a new title and each sharer gives up his/her interest in
the estate in favor of other sharers.
The
instrument of partition is a document by which the co-owners of a property
agree to divide a property among themselves by oral agreement or written agreement or by arbitration or through court. If a document of release shows
that the executants are to get cash or other assets the document is an
instrument of partition. The basis of partition is equality. The party shall
share the property equally.
Partition
deed requires stamp on the value of largest separated share. Duplicate copies
are stamped under Article 25 of Indian Stamp Act. Each duplicate copy must
denote the value of the stamp on the original. Unregistered deed of partition
is not admissible as evidence to prove the fact of partition. Thus, one cannot
prove his/her title on his/her share without registering it.
Palu
Patti is also a very common practice of oral transfer of property but very few
people know that a Palu Patti should be deduced in writing which further
aggravates the problem. oral partition is allowed under Hindu Law, it is not
preferable as it may give rise to disputes particularly with respect to
immovable properties. It is advisable oral partition should be reduced in
writing (palu patti). Also, the Income Tax Act does not recognise oral
partition of a Hindu Family property unless the Income Tax Officer is satisfied
with the facts and this is possible only when it is recorded in partition deed.
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