Property is a heavy investment and disputes relating to Property must be deal with great care. Where there is money there are various disputes. Disputes regarding terms and condition while purchasing of any property are very common. Disputes arose when any terms and condition was found invalid or extension of time is required by any of the party of agreement. Disputes also arose with construction process and delay in constructions. Some time disputes are intentional and sometime disputes are unavoidable. The latest example of unintentional disputes rises in property due the COVID 19 situation. To deal with such problems, Settlement Deed and Memorandum of Understanding is the only solution to avoid the litigation.
Disputes are common in real estate due to huge amount of money involved. To resolve the issues out of court, parties generally perform meetings and try to resolve the disputes. But still due to having no faith left in each other, many times parties do not come to any conclusion. It is recommendable to execute Settlement Deed in such cases.
Memorandum of Understanding is deemed to the extension of the exiting agreement. Memorandum of Understanding is executed in cases where terms and condition are modified or for extension of time. Memorandum of Understanding does not affect the original agreement but it is the extension of the original agreement.
Settlement Deed and Memorandum of Understanding both are the extension of original agreement. Settlement deed is generally executed to resolve the dispute and cancelation of original agreement after execution of terms and condition of settlement deed. For eg if parties disagree to continue the deal and they have to refund the earnest money/bayana, then settlement deed come into existence. Memorandum of Understanding is the extension of original agreement which increases the terms and condition and validity of original agreement. For eg, If both party requires more time to execute the deal, than original agreement must be kept same but one clause need to be extended or modified. In such cases Memorandum of Understanding came into existence.
Both Settlement Deed and Memorandum of Understanding are valid in the court. The Settlement Deed and Memorandum of Understanding if properly registered is treated as agreement and any party can sue or can be sued on the basis of Settlement Deed and Memorandum of Understanding. Every party is bound to comply the terms and condition of Settlement Deed and Memorandum of Understanding.
1. Photographs of parties
2. Property Papers
3. Aadhar Card of parties
4. Draft
5. Stamp Paper
6. Original Agreement