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2018-05-09 12:13:33

What does a rectification deed mean?

A rectification deed also called referred to as a confirmation deed or correction deed is a deed which the two parties to the original deed enter into in order to rectify or correct the errors made in the original deed. If a deed contains mistakes like misspellings in names, description of property, typos or any other errors, these mistakes can later be corrected through rectification deeds.

Section 17 of the Indian Registration Act says that any deed that confirms any interest in an immovable property has to be registered with the Registrar’s office. Such confirmation is given by deeds, acquiescence or limitation. If the confirmation is given by deed, then stamp duty will be applicable to it. Moreover, when the main document is going to be registered or is already registered, then its confirmation/ rectification deed is also required to be registered.

One may think that small errors like typographical errors are not very serious and do not warrant the execution of a sale deed. However, even the smallest of errors can be the cause of future court cases and may even end being the cause of nullification or cancellation of a contract/ transaction. Moreover, deeds like sale deeds require the stamp papers which are often not very inexpensive. Moreover, it is not practical or plausible to execute a new sale deed every time an error is detected in the original deed. Therefore, the rectification deed is very useful when it comes to correcting mistakes in a deed without affecting the transaction related to the deed.

In case of a sale deed, the common errors that are usually made which require rectification are:

  • Error in describing the property’s dimensions or area
  • Error in the names and addresses of the parties
  • Error in describing the correct revenue records
  • Error in the correct information of the prior title deeds
  • Error in entering the correct information about the ownership of the property and power of attorney

What are the conditions in which rectification deeds can be filed?

Rectification deeds can be executed only if the errors in the original deed fulfil the following criteria:

       1. There should exist a factual error in the main/ original deed,

       2. The error is genuine,

       3. The error is not intentional,

       4.  Because of the error, the agreed upon requirements of both the parties are not fulfilled.

       5.  All the parties to the original deed have given consent to rectify the deed.

No limitation of time

A deed can be rectified at any time since there is no limitation for rectification. Whenever an error found out in a deed, the parties can proceed with rectification of the error at any time.

What is the process of filing a rectification deed?

  • First, the parties to the main deed have to come to the agreement that the main document requires rectification.        Once this is agreed upon, the details of the rectification are transferred to a duly executed document.
  • The parties then have to pay the stamp duty and registration charges as applicable in that particular state.
  • This rectification deed is then registered in the same sub registrar’s office where the main deed had been registered.
  • In the event that even the rectification deed has errors in it, a supplementary rectification deed is executed. This can be done upon the payment of the required registration charges and stamp duty.

However, if mistakes are identified in the main deed before it is registered, then the corrections are can be made directly into the main deed with the approval of both the parties to a deed. In such cases, there is no need for a rectification deed since the original deed has not been registered yet. In case of a sale deed, if mistakes in facts like the measurement of the property or the terms of the transaction are found, then the whole page containing these errors should ideally be replaced notwithstanding the cost of stamp on that page.

The registration charges and stamp duty for typographical errors are usually around Rs. 100. However, additional conveyance charges are payable if the corrections in the rectification deed involve changes in the names of the buyers and sellers, changes in location, survey number of the plot or measurements of the dimensions of the property. Moreover, additional charges and stamp duty can also be implemented by the registration authority if it thinks that the particular case requires so.

Rectification deed format

A rectification deed includes the names and the addresses of the parties to the deed as well as the details of the main deed. The rectification deed also includes a description of the correction that is to be made to the main/ original deed. The language of the rectification deed should be precise and clear so that any future complications regarding the deed are avoided. Attached to the rectification deed are two schedules of property. The first schedule of property is the same as that attached to the main deed. The second schedule of property is as rectified by the rectification deed.

However, a rectification deed cannot be used to change the scope of the main deed or go against any regulations. Moreover, a rectification deed cannot be used in such a manner that either party to the deed is deprived of their rights.

What if one of the parties does not agree to rectify

Agreement of all the parties to a deed is essential for a rectification deed to be valid. But if one of the parties does not agree to rectify the deed, then the other (aggrieved) party can force a rectification by filing a suit under section 26 of the Specific Relief Act, 1963. If the court is satisfied with the fact that the main deed “does not express the real intent of the parties”, then it will order for the deed to be rectified.

What can a rectification deed not be used for

Not all errors can be corrected by way of a rectification deed. Errors that are incorrect in the points of law cannot stand corrected by way of a rectification deed. These errors include:

  • Mistake in jurisdiction
  • Insufficient stamp duty
  • If the scope of the original deed is intended to be altered
  • If the there is an error in the nature of the transaction. For eg. If a sale deed being registered as a gift deed.
For such mistakes that involve errors in law, the rectification deed cannot be utilised to make amends. The parties will have to resort to other different measures to amend such mistakes of law.

      A Rectification Deed is not the same as a Ratification Deed

It must be noted that a rectification deed and a ratification deed are not the same and should not be confused with each other. A rectification is for the purpose of correcting errors in a deed with respect to facts of the deed. A ratification deed is used by the person in authority to approve or confirm an act that was done by another in his or her behalf. An example of a ratification is when a person who has been granted power of attorney does an action that is not defined properly in his conditions of power of attorney. Here, the principal, or the person who had granted such person with the power of attorney can execute a ratification deed to approve of such an action and thereby make it a lawful action within the terms of power of attorney.

Another application of the ratification deed is when transactions or contracts are executed on behalf of minors. Take for instance, a sale contract involving a minor. When a sale is conducted by a person on behalf of a minor, the minor, when he or she attains the age of majority, can execute a ratification deed and thereby agree and accept the sale. In such cases, the ratification deed would have retrospective application, which means that the deed would validate the transaction from the date the sale was made (at an earlier date) and not when the deed was executed (at the later date).

A ratification deed can also be used by the person in authority (the principal) to ratify or acknowledge an action done by a person who was not given permission by the principal to do that action. For example, a spouse can take decision without consulting their partner if the spouse is absent. A ratification deed executed at later time by the absentee spouse acknowledging the act done in his or her absence would validate such an action. However, it should be noted that, in different scenarios, just a verbal agreement or acknowledge may not be enough to ratify an action and therefore a ratification deed is required. The purpose of the ratification deed to set right an irregular or an unauthorised action and in doing so, such an unauthorised or irregular action would be considered to have been performed with the proper consent and authorisation of the principal.

For actions taken by a person on behalf of a person where the act does not completely bind the principal can also be ratified made binding through a ratification deed. The principal can approve of the actions taken at a later date one he or she has made themselves familiar with all the facts of the case. Upon ratification, the ratifying person/ principal will assume the responsibilities of the transaction and also reap the benefits of the transaction.

In some cases, both ratification, as well as rectification deeds, are required. The decision boils down to the exercise of good judgment on behalf of the parties. 

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