Wednesday 20 July 2016

Confirmation Deed




                                        Confirmation Deed

                                                         


Indeed there is every need that great care has to be taken by the Purchaser of a Property to ensure that the Sale Deed executed in his/her favour is correct in all respects; and that there is no mistake or error whatsoever in the said document which conveys the right, title and all privileges in absolute terms.

In order to ensure that the Sale Deed executed and got registered in his/her or their favour, the Purchaser of the property should get the document vetted thoroughly and take every step to get the error/s or mistake/s, if any, crept in, are rectified and confirm the Purchaser's title over the said property.

Normally, it is observed that many a time some sort of document supplementing the main absolute sale deed, or mortgage deed etc., is required to be executed in order to remove the defect occurred while executing and/or registering the main document or to correct mistake crept in. In such event, the necessity of CONFIRMATION DEED arises. 

The strict meaning of the term “Confirmation ” is the approbation of or assent to an estate already created by which the confirmer strengthens and gives validity to such estate so far as it is in his power. Confirmation can take place by three ways: (1) by a Deed; (2) by acquiescence or (3) by limitation. The latter two are confirmation in law and the first one is confirmation by a deed.

There are two types of Confirmation Deeds. One is a Deed of Confirmation whereby a person confirms or gives his assent to a document of transfer executed by another person, where the former has not been made a confirming party to the main document of transfer either through oversight or for some other reasons. The second type of Confirmation deed document is executed when a party to a document has made some mistake in signing the main document or has failed to admit execution before the Sub Registrar within the prescribed time and the Sub Registrar has refused to register the document so far as the defaulting party is concerned or in some other respect.

Usually, the need for execution of second type of confirmation deed will frequently occur. It is very common that for one reason or the other a party executes a deed and when it is later on lodged for registration, fails to appear before the Sub Registrar in time and as a result whereof the Sub Registrar refuses to register the deed so far as he is concerned. In such a case to remove the defect, a Confirmation Deed is executed by such a party whereby he confirms the execution of the main deed and confirms the main deed as valid and binding upon him and if he is the transfer-or or one of the transfers he also confirms that he claims no right, title and interest in the property and the same would belong to the transference. Copy of the main deed is to be attached with the Confirmation Deed and it is desirable to have the copy signed by him. How far such a document cures the defect is not very clear but this is the way the mistake can be rectified as it would not be possible to execute a fresh deed and pay fresh stamp duty and registration charges. In any event it appears that such a document would act as a promissory estoppel against the party.

Section 66 of the (English) Law of Property act, 1925 provides that “ a deed containing a declaration by the estate owner that his estate shall go and devolve in such a manner as may be requisite for confirming any interests intended to affect his estate and capable under this Act, of subsisting as legal estates which, at some prior date were expressed to have been transferred or created, and any dealings therewith which would have been legal, if those interests had been legally and validly transferred or created, shall, to the extent of the estate of the estate owner, but without prejudice to the restrictions imposed by this Act in the case of mortgages, operate to give legal effect to the interests so expressed to have been transferred or created and to the subsequent dealings aforesaid. Even though there is no such specific provision in any of the Statute in our Country, yet such a document will have legal effect by way of estoppel or admission.

Section 17(1) of the Registration Act also recognizes the Confirmation Deed as it provides that any document confirming any interest in an immoveable property requires registration. Such a document will only attract stamp duty as on agreement under article 5 (h) of the Stamp Act and should be registered, irrespective of whether the main document is registered or is to be registered.

The Confirmation Deed is executed on various circumstances such as :


Confirmation Deed by the Vendor, whenever the Vendor has failed to appear before the Sub Registrar to admit the execution by him of the said Deed within the prescribed period.

• Confirmation deed of Sale by Trustees, whenever the Trustees, before the beneficiaries of the trust attaining the age of 21 years sell the land and premises to some others and execute a sale deed, without having any authority to do so under the said Deed of Trust and without obtaining leave of a Competent Court to do so.

Confirmation Deed by Lessor of assignment, whenever the Lessor of Assignment without taking the prior consent of the Lessor of the Lease Deed assigns the demised premises comprised in the said Lease Deed in favour of the Assignee and when the Lessor of the Lease Deed has become entitled to terminate the said Lease deed.

Confirmation deed by a trustee of Lease granted by other Trustees, whenever the Deed of settlement is executed by the Settlor in favour of the Trustees and when both the parties referred to in the said Deed of Settlement are the Trustees of the other part, thereby the said Deed of lease executed by the later part of the Deed of settlement under mistaken advice and when the Lessee demands the execution of confirmation deed by the remaining trustee in order to confirm the said lease deed. 

Confirmation Deed of a Sale deed with a wrong schedule. 

• Confirmation Deed and transferer by a benamidar in favour of the Real owner. 

• Confirmation Deed by owner of conveyance by Attorney. 

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