Mumbai Housing Society Queries: 'Family Arrangements Are A Way To Distribute Property Amicably', Says Expert

What is a family arrangement deed and when should it be executed? 

Monita Guha, Vashi 

The term family arrangement has not been defined in any legislation but has been referred to in section 154B-11 of the Maharashtra Cooperative Societies Act as one of the documents by which the flat can be transferred to the heir in the absence of a will of the deceased member. 

Traditionally, family arrangements are executed to distribute the ancestral property between the heirs to avoid any dispute in future. It is a way to agree to the distribution of the property amicably. It can be an oral agreement or a written memorandum of family arrangement or a recording of the actions taken by the heirs with regard to the distribution of the common property and its alienation amongst the heirs. In case the arrangement is oral, it need not be registered. A written memo of family arrangment shall be duly stamped and registered. A family arrangement deed is one such valid document that can be submitted to society to transfer the flat of the deceased to the person named in it. It has to be executed by all the heirs of the deceased member. 

Our building, where our flat is in our mother’s name, is going in for redevelopment. Considering her old age, it has been suggested to obtain a release deed from her in favour of her three children. How do we go about this?

Brid NK, Vakola 

A release deed is generally made to relinquish the claim, right or interest in a property, which a person is entitled to receive. It may also be executed to release someone from a contractual obligation and such other purposes. Executing a release deed may not serve your purpose. In this case, your mother is the owner of the flat and in case she wishes to transfer it to her children, she is required to execute a gift deed favouring all the three children in a decided proportion or equal proportion. 

The gift deed will have to be registered after paying a stamp duty and the copy can be submitted to the housing society to take the transfer on record by endorsing the names on the share certificate. While making the gift deed, please ensure that her interest is protected by adding a clause to the effect, that she shall be entitled to live in the said flat throughout her lifetime. 

The questions are answered by Sharmila Ranade, a legal expert associated with Mumbai Grahak Panchayat. 

The questions, in brief, may be sent to fpjchs@gmail.com.