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Questions and Answers
Which of the following is NOT considered an instrument?
Which of the following is NOT considered an instrument?
How does an oral gift of immovable property become an 'Instrument of gift'?
How does an oral gift of immovable property become an 'Instrument of gift'?
What determines the market value of a property?
What determines the market value of a property?
Which of the following is recognized as an Instrument of partition?
Which of the following is recognized as an Instrument of partition?
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Are electronic records included in the definition of instruments?
Are electronic records included in the definition of instruments?
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What does immoveable property include?
What does immoveable property include?
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Who can execute a partition deed?
Who can execute a partition deed?
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Which document is NOT excluded from the definition of instrument?
Which document is NOT excluded from the definition of instrument?
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When calculating market value, authorities will consider what?
When calculating market value, authorities will consider what?
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What types of documents are included in an instrument of partition?
What types of documents are included in an instrument of partition?
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Study Notes
Instruments: Definition and Components
- Instruments: Legal documents that formally record certain transactions or agreements, specifically those related to property.
- Exclusions from Instrument Definition: Promissory notes are excluded from the definition of an "Instrument."
- Instruments of Gift: An oral gift of immovable property becomes an instrument of gift when recorded in writing, not just verbally announced, recorded or registered.
Determining Market Value
- Market Value Calculation: The market value of property is established as the higher of the market price or the stated consideration within the instrument.
- Factors Considered Market value is calculated taking into account the highest value, not just the government rates, the seller's asking price, or buyer's offered price.
Instruments of Partition
- Instrument of Partition: A final order issued by revenue authorities, not verbal agreements, unrecorded divisions, or informal settlements.
- Co-owner Execution: Documents for property division are executed by co-owners, not an arbitrator or court alone. Documents can be executed by co-owners.
Electronic Records and Immovable Property
- Electronic Records: Electronic documents are included in the definition of instruments, as per the IT Act.
- Immovable Property Definition: Immovable property encompasses land and permanently affixed structures (e.g., buildings).
- Excluded: Neither only land, nor only buildings, but land and permanently affixed structures are included. Agricultural land is often included.
Additional Instrument Details
- Excluded Documents: Bill of exchange, property sale deed, insurance policy and share transfer are considered instruments.
- Instrument Calculation: When valuing property, authorities consider the higher of market value or registered value.
- Instrument of Partition Components: Documents may include court orders, arbitrator awards and co-owner agreements.
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Description
This quiz explores the definition and components of legal instruments, including their role in property transactions. It also covers the calculation of market value and factors affecting it, alongside the concept of instruments of partition. Test your understanding of these key legal concepts!
