TRANSFER OF PROPERTY AND REGISTRATION OF NEW OWNERS
Under the Indian legal system, properties are divided into two categories – movable and immovable. The transfer of immovable property is governed by the Transfer of Property Act, 1882. Knowledgentia Consultants is one of the best law firm for property registration in India. With expert property transfer lawyers in India and topmost property dispute lawyers in India, now the process of property transfer is smooth and hassle free. Under the Transfer of Property Act, a transfer of property can be effectuated by an act of two or more parties or an act by the operation of the law. Immovable property in India can be transferred by way of sale, mortgage, lease, actionable claim, gift or exchange or through succession which is governed by laws of succession.
WHO CAN TRANSFER PROPERTY
As per Section 7 of the Transfer of Property Act –
‘Every person competent to contract and entitled to transferable property, or authorised to dispose of transferable property not his own, is competent to transfer such property, either wholly or in part and either absolutely or conditionally, in the circumstances, to the extent and in the manner, allowed and prescribed by any law for the time being in force,
Further, under the Indian Contract Act, 1872, a person must be at least 18 years of age and have a sound mind, to be eligible to enter into a contract for sale or any other documents during the process of property registration in India. The law provides that property transfers could be affected though an oral agreement, unless the law explicitly states that a written agreement must be prepared to conclude the transaction. In the case of immovable property of value less than Rs 100, such transfers may be made either through a registered instrument or by delivery of the property. Property valued above Rs. 100 however needs to be compulsorily registered.
RESPONSIBILITIES OF THE SELLER DURING TRANSFER OF PROPERTY
A seller has following obligations including but not limited to :-
- To disclose to the buyer any material defect in the property.
- To provide to the buyer on his request for examination, all documents of title relating to the property.
- To execute a proper conveyance of the property, when the buyer tenders it to him for execution at a proper time and place, on payment or tender of the amount due in respect of the price.
- To give the buyer possession of the property.
- To pay all public charges and rent accrued with respect to the property, up to the date of the sale.
- To discharge all encumbrances on the property then existing.
DUTIES OF THE BUYER DURING TRANSFER OF PROPERTY
- To disclose to the seller any fact about the property, of which the buyer is aware of but has reason to believe that the seller is not aware of and which materially increases the value of such interest.
- To pay the purchase money to the seller at the time and place of completing the sale.
- To bear any loss arising from the destruction, injury or decrease in value of the property not caused by the seller, where the ownership of the property has passed on to the buyer.
- To pay all public charges and rent, which may become payable on the property, the principal monies due on any encumbrances subject to which the property is sold and the interest thereon afterwards accruing due, where the ownership of the property has passed on to the buyer.
REGISTRATION OF NEW OWNERS
Property registration in India is governed by the Registration Act of 1908. Registration of property requires submission of some documents, payment of fees and stamp duty, and signing of documents by the seller and the purchaser.
Once a property has been transferred by way of relinquishment, sale, or gift deed in the “name” of the recipient, it is also important to have the transfer recorded in the municipal records by way of mutation. Stamp duty on transfer is payable as per applicable state laws. It is different for different states in India.
PROCESS OF PROPERTY REGISTRATION IN INDIA IN THE NAME OF NEW OWNERS
- DUE DILIGENCE TO CHECK FOR ENCUMBRANCES
Ownership status or title deed of the property need to be thoroughly checked. Existence of mortgage and whether property transferable and heritable also need to be checked. The record for the past 30 years should be checked. The document should be issued by the Revenue Record Department. All dues like electricity bills, taxes, and water bills should be paid.
- DRAFTING OF THE DEED
This document should be prepared by professional property transfer lawyers in India.
- PAYMENT OF STAMP DUTY
It is the buyer who pays the stamp duty with the respective bank .The stamp duty varies from one state to another.
- EXECUTING THE FINAL DEED
It is done in front of the purchaser, the seller, and the witnesses at the sub registrar’s office within whose jurisdiction the location of the property falls. A number is given for the document.
At Knowledgentia, we have an expert team to deal with all matters relating to transfer, dispute resolution with regards to immovable property. Considering our clients who are NRI’s we are also able to assist them through online procedures to effectively manage their property in India. We handle the entire ambit of resolution of property disputes including but not limited to issues regarding title, registration, possession, ownership, partition, tenancy, leasehold issues, easements rights, illegal possession of property, mutation and provide satisfactory solution. We have earned a name as one of the most client focused firm providing property registration services in India with a talented team of property transfer lawyers in India and property dispute lawyers in India. We are your one-stop solution for all kinds of legal, compliance and supplemental matters concerning property registration in India. In case of any query regarding this matter you may email us at email@example.com or visit our website -https://knowledgentia.com/.