Difference between Settlement Deed and Settlement Agreement

When it comes to legal terms, confusion is a common occurrence. The terms settlement deed and settlement agreement may sound similar, but they have distinct differences. In this article, we’ll explore the key differences between these two legal documents.

Settlement Deed

A settlement deed, also known as a release deed, is a legal document that transfers the ownership of a property from one person to another. It is typically used to resolve disputes related to property ownership, such as an inheritance dispute or a divorce settlement. A settlement deed is a legally binding agreement that outlines the terms and conditions of the property transfer.

The document usually includes details such as the property description, the names of the parties involved, the agreed-upon amount for the transfer, and any other special conditions specified by the parties. Settlement deeds are registered with the Sub-Registrar of Assurances to make them legally enforceable.

Settlement Agreement

A settlement agreement is a legal document that resolves a dispute between two or more parties without going to court. It is a legally binding contract that outlines the terms and conditions of the settlement. It is commonly used to settle disputes related to contract breaches, employment claims, and personal injury claims.

The document usually includes details such as the parties involved, the agreed-upon terms of the settlement, the payment amounts, and any other terms deemed necessary by the parties. Settlement agreements are not typically registered with any government agency, as they are not property transfers.

Key Differences

The main difference between a settlement deed and a settlement agreement is the nature of the dispute being resolved. A settlement deed resolves a dispute related to property ownership, while a settlement agreement resolves a dispute related to any other legal matter.

Another significant difference is the registration process. Settlement deeds are registered with the Sub-Registrar of Assurances to make them legally enforceable, while settlement agreements are not typically registered with any government agency.

In summary, settlement deeds and settlement agreements are both legal documents used to resolve disputes, but they have distinct differences. Settlement deeds are used to transfer property ownership and are registered with the Sub-Registrar of Assurances, while settlement agreements are used to resolve disputes related to any other legal matter and are not registered with any government agency.