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Rectification Deeds: Everything you need to know

Rectification Deeds: Everything you need to know

By Dhaval Shah

·

20th Feb, 2024

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7 min read

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What is a Rectification Deed and Why is it Necessary?Basic criteria to file a Rectification DeedHow To Execute a Rectification Deed?ChargesResolution of DisputesContents of a Rectification DeedIs There a Deadline for Rectification?Conclusion

Rectification Deeds are crucial legal instruments designed to rectify errors or factual inaccuracies in sale or title deeds, ensuring accuracy and integrity in real estate transactions. From correcting minor typos to addressing significant discrepancies, these deeds offer a vital failsafe for both buyers and sellers, ultimately safeguarding their interests and streamlining the transaction process.

The high-stakes world of real estate transactions demands accuracy and precision and hence even the tiniest error, typo or miscalculation can lead to long and difficult legal entanglements. But mistakes happen and often these mistakes are not worth dragging out the transaction process for longer than they need to be.

Let’s talk about the intricacies of Rectification Deeds and how they are a saving grace when it comes to real estate transactions.

What is a Rectification Deed and Why is it Necessary?

A Rectification Deed or a correction deed as it is commonly known, is a mechanism through which buyers and sellers can correct specific clerical errors like numbers and spelling errors in the sales deed.

For example, if the flat number of a particular property in a sales deed is given to be '208', but the actual flat number is '218,' then this factual error can be rectified with the help of a Rectification Deed.

The same goes for spelling mistakes. If a person's name in the sales deed is stated as ‘Aayush’ but his actual name is 'Ayush,' then both the parties (i.e., the buyer and the seller) can correct this with the help of the Rectification Deed.

Here is why a Rectification Deed is so important. There is no shortage of cases where transactions have stayed in legal limbo, dragged into legal oblivion or even straight up nullified because of minor and trivial errors. Even if these small mistakes sound redundant, they could have solid ramifications.

Imagine a scenario where someone with the same name as you purchases a property, and their identification number by sheer coincidence is almost the same as yours and a small mistake happens where someone’s finger slipped and typed an 8 instead of a 7.

Congratulations!!! There is now a property registered under your name that you did not have to pay a penny for and you don’t even know about it. But in this case, the registration office does not recognize the legitimacy of the original buyer’s ownership because of this small mistake.

A Rectification Deed can correct the following mistakes in a sales deed:

  • Spelling Mistakes: Rectify discrepancies in names, addresses, or other textual elements within the deed.
  • Typing Mistakes: Correct errors arising from typographical errors, ensuring consistency and accuracy. This can include grammatical mistakes or errors that may make an agreement appear ambiguous and unclear.
  • Numeric Mistakes: Address discrepancies in numerical figures, such as property dimensions or identification numbers. Fixing numerical errors in property dimensions is especially important incase of commercial spaces because it can have profound tax implications.
  • Complex Sentence Structuring: Amend convoluted or ambiguous language to clarify the intent and terms of the transaction. Unclear language leaves room for unfavorable loopholes and opportunities for exploitation. A simple and clear statement goes a long way and avoids confusing circumstances brought about by jargon, in case the parties involved aren’t seasoned industry professionals.

However, it's important to note that certain fundamental aspects of the transaction cannot be rectified through a Rectification Deed. These include issues related to the basic character of the transaction, deficient stamp duty payments, or jurisdictional errors concerning the sub-registrar's office.

Basic criteria to file a Rectification Deed

Both buyers and sellers will need to visit the sub-registrar's office if they find an error in the deed. To request a correction in the document, they must submit an application along with all supporting documents to the official. Rectification Deed registration requires two witnesses in cases of major changes to the original document.

There are cases where rectifications are allowed to be filed and some cases where it is prohibited to do so. Let’s take a look at both cases.

Conditions where a rectification deed can be issued:

  • Genuine Mistakes: The errors present in the original document must be genuine and verifiable.
  • Unintentional Errors: Mistakes in the original document should be unintentional and not indicative of fraudulent intent.
  • Mutual Consent: Both parties involved in the transaction must mutually agree to execute the Rectification Deed.

Conditions where a rectification deed cannot be issued:

  • Material Changes: Rectification deeds cannot be issued for material changes in the original documents. Material changes refer to alterations that substantially affect the terms, conditions, or rights of the parties involved.
  • Legal Restrictions: If legal restrictions prohibit the correction of errors through a rectification deed, such as changes that violate zoning laws or other regulatory requirements, a rectification deed cannot be issued.
  • Disputed Changes: When changes in the documents are disputed or contested by one or more parties involved, it may not be possible to issue a rectification deed until the dispute is resolved through legal means.
  • Fraudulent Intent: If errors in the documents are found to be the result of fraudulent intent or proven misrepresentation by any party, a rectification deed may not be issued, and legal action may be pursued instead.
  • A Rectification Deed can now also be filed online from the comfort of your home. From booking appointments and filling applications to paying the correction fees, every process is optimized for online use. Every state has their own registration website suited to their respective jurisdictions. Here are the official websites of some prominent states:

  • West Bengal: www.wbregistration.gov.in
  • Maharashtra: gras.mahakosh.gov.in/igr/
  • Gujarat: https://services.india.gov.in
  • Delhi: http://revenue.delhi.gov.in

A key point to remember is that a only minor clerical discrepancies may be corrected or nullified via this method. More serious matters such as legal mistakes, jurisdictional errors and stamp duty errors are not covered under a rectification deed.

How To Execute a Rectification Deed?

Filing a Rectification Deed:

  • Both parties must visit the sub-registrar's office and submit an application along with supporting documents to request corrections.
  • A rectification deed must now be drafted, mentioning the correct information that needs to be updated and the supporting documents for the same.
  • The deed must be now executed on a stamp paper of a value appropriate to the area’s jurisdiction.
  • For major changes, two witnesses may be required during the registration process.
  • Online filing options are also available through state land revenue department portals.

Charges

A nominal fee of Rs.100 is typically charged for minor corrections. Major changes may incur higher fees, commensurate with the significance of the alteration.

Resolution of Disputes

In cases where one party disputes the need for a Rectification Deed, legal recourse may be pursued under Section 26(a) of the Special Relief Act, 1963. This provision allows either party to seek rectification of the contract if it does not align with the original intent of the parties involved.

Contents of a Rectification Deed

The rectification deed must contain precise and updated property details and accurately identify the accurate information requiring amendments. A rectification deed doesn't establish a new transaction; rather, it is just a correction of the initial document.

While drafting the rectification deed, it is important to be transparent about the needs and intentions of both parties and should be mentioned in a language that is clear and easily understood by everyone involved in the transaction.

The format of the rectification deed should meet legal guidelines and adhere to registration charges applicable within the relevant jurisdiction. It is highly recommended to seek legal guidance in order to ensure a smooth and error free transaction and add legitimacy to the deal.

Is There a Deadline for Rectification?

According to law, there is no specific timeframe or deadline in the middle of a transaction to file for a rectification deed. There have been cases where Rectification Deeds have been filed by parties not just years but decades into a real estate transaction.

Conclusion

In the high-stakes landscape of real estate transactions, the importance of accuracy and compliance cannot be overstated. Rectification Deeds serve as indispensable tools for rectifying errors, safeguarding the interests of both buyers and sellers, and maintaining the integrity of property transactions. Whether addressing minor typographical errors or more substantial discrepancies, the execution of a Rectification Deed exemplifies prudence and diligence in navigating the intricacies of real estate documentation.

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Dhaval Shah
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Investment Associate
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Likes being around people and engaging in meaning conversations. Enjoys a good football game with buddies once in a while.