Thursday 12 December 2013

RECTIFICATION OF PROPERTY DOCUMENT

RECTIFICATION OF PROPERTY DOCUMENT

Documents of immovable property should depict the correct title of the present owner and should be free from mistakes if the owner of the property is to have peaceful possession and enjoyment of such property. However, in spite of great precaution, many of the documents do contain mistakes. Mistakes noticed in a document after registration can be corrected only by execution of a rectification deed and not by tampering with the original documents. However, the mistakes noticed in a documents before registration can be corrected under the signature of the concerned person.

Types of mistakes

It is difficult to specify the exact type of mistakes which a document may contain. There is no uniformity in the types of mistakes in a property document. Some documents may contain mistakes relating to boundaries of the property, measurement of the plot while some other documents may contain mistakes relating to the location, survey numbers, municipal numbers, description and number of floors, names of parties, consideration amount, absence of easementary rights clause etc. In one of the cases, it is noticed after the purchase of the property that the measurement of the site has been wrongly spelt in the sale deed showing East to West 40’ and North to South as 30’ instead of East to West 30’ and North to South 40’ and thereby the sale deed became defective and the purchaser was handicapped to deal with the property as he liked without a rectification deed rectifying the mistake in the measurement. This type of mistakes could be termed as mistakes due to negligence. Before registration, if the parties had compared the measurement and the boundaries of the property the need for execution of rectification deed would not have arisen. This type of mistakes are very common and do occur due to non-verification and comparison of the sale deeds with the records of the revenue authorities or due to ignorance or laxity on the part of the parties to the transaction or the middlemen involved therein. But, whatever be the reason, the mistakes in the sale deeds do require rectification if the purchaser has to enjoy his property without litigation or disturbance and to have a clear marketable title.

Rectification deed

Such mistakes, errors in the deeds require to be corrected by execution of a supplementary document called “rectification deed”. Rectification deed is a document executed between parties for effecting corrections of the mistakes of facts / typographical errors which are committed in the original/principal deed. Rectification of deeds is supported by the various canons of law and is an equitable relief usually granted by Courts of Equity and is based on doctrine of mistake of fact. Once a rectification deed is executed, it shall have to be read as part of the original sale deed and copies of the extracts of the revenue records indicating the fact of execution of rectification deed are to be obtained and preserved along with the sale deed and the rectification deed.

Pre-requisites

In order to execute a deed of rectification, there must be bonafide mistake whereby the original deed does not reflect the true intention of parties to the said deed. More importantly the mistake should pertain to the facts and not for application or interpretation of law. However, there is an exception to this rule. The mistake of foreign law is considered as mistake of fact. Section 21 of Indian Contract Act is relevant in regard to this.

When the parties to deed agree to modify, add or delete any terms referred to in any original deed executed by them on a prior date, to bring out their true intentions, it is necessary to reduce such correction into a duly executed document and to pay the requisite stamp duty in order to get the same registered with the concerned authority.

Absence of mutual consent

Rectification Deeds are executed by mutual consent of the parties to the Main Deed and all such parties to the original deed should jointly execute the rectification deed. However, a problem may arise where such mutual consent is not possible. In such cases, the recourse open is to file a suit before a competent court under section 26 of Specific Relief Act 1963. This section provides for relief to parties where the real intention of the party is not properly reflected in the documents executed because of a bonafide mistake of fact or fraud. In such a case, either the party or his representative may institute a suit to have the said deed rectified. If the court is satisfied that the deed does not express the real intention of the parties, it may direct rectification of the instrument. In such cases the original deed may be first rectified and then the parties claiming rectification should seek sanction of the court to such rectification in his pleading and if the court so thinks fit, the same may be specially enforced. This relief will be granted only if it has been specially claimed in the pleadings. However, if the said relief has not been specifically claimed, the court at any stage of proceedings at its own discretion may allow the party to amend its pleadings to incorporate the said relief. This relief is entirely discretionary and when granted will not prejudice the rights acquired by a third party in good faith for value.

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