RECTIFICATION OF PROPERTY DOCUMENT

Advocate | Advocate Selvakumar | property advocates in Bangalore

Rectification deed is a document executed between parties for the purpose of effecting corrections of the mistakes of facts / typographical errors which are committed in the original/principal deed.

In one instances, one Mr. Sampath purchased a residential site at Peenya, Bangalore for a consideration of Rs. 4 lakhs and got the sale deed in respect of the said property registered.  After receipt of the sale deed, he discovered that the dimensions of the property provided in the schedule annexed to the said sale deed, were wrongly stated as “East to West 40’ and North To South as 30’” instead of “East to West 30’ and North to South 40’.” In another instance one Mr. Rajagopal had a similar problem in the sale deed executed by him, wherein the boundaries of property purchased by him were wrongly stated. The mistakes committed in the above two instances are too common and are rectifiable.

However, the case of one Mr. Narasimhan was found to be slightly different, as he has purchased two individual properties from a common vendor under a common sale deed and thus both the said individual properties had a common schedule, annexed to the said sale deed.  Mr. Narasimhan, subsequently was shocked to discover that encumbrance certificate pertaining to the said properties did not reflect their individual sale, but only reflected the combined sale under a single property schedule.

There are many such instances to be found wherein mistakes creep into sale deeds, which are not properly verified and compared with the title deeds, revenue records, and those are usually documents, which are not drafted by professionals/advocates.  Sometimes, the area of the property, survey numbers, location, boundaries, municipal numbers, description and number of floors, are wrongly stated.  Names of parties are mis-spelt, consideration amount incorrectly stated, easementary rights not being properly dealt with.  In many of such cases, the real intention of parties to the deed may not have been reduced into writing.

Such mistakes, errors in the deeds require to be corrected by execution of a supplementary document namely a rectification deed.  Rectification of deeds is supported by the various canons of law and is an equitable relief usually granted by the Court of Equity and is based on doctrine of mistake of fact.  In order to execute a deed of rectification, there must be mutual bonafide mistake whereby the original deed does not reflect the true intention of parties to the said deed.

More importantly the said mistake should pertain to facts only and not  a mistake of law. However, a notable exception to the said rule is in respect to mistake of foreign law which is considered as mistake of fact for the said purpose.  Sections 20 and 21 of Indian Contract Act deals with this aspect of law.

When the parties to deed, agree to modify, add, delete any terms referred to in any original deed executed by them on a prior dated, 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.

Rectification Deeds are executed out of mutual consent of the parties to Main Deed, and all such parties to the original deed should jointly execute the rectification of the same. However, a problem may arise where such mutual consent is not possible.  In such cases, the recourse is to file a suit before a competent court under section 26 of Specific Relief Act 1963.  The said section provides for relief to parties facing the problem stated above, where the real intention of the party is not properly reflected in the documents executed because of a bonafide mistake of fact or fraud, whereby either the party or his representative may institute a suit to have the said deed rectified.

The said section also empowers the courts to direct the rectification of an instrument, if the court satisfied that the deed does not express the real intention of the parties.  In such cases the original deed may be first be 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.

If the original deed is registered, the corresponding rectification deed also requires to be registered. The stamp duty and registration charges payable for registration of the rectification deed are as prescribed by respective states.

If the rectification deeds rectifies the mistakes of general nature, boundaries, spellings, etc the stamp duty and registration charges are Rupees One Hundred each, and if the rectification deed refers to the area, extent of the property, names of the executants, stamp duty and registration charges are as that of conveyance deed.