Do you know about property transfer? We agree that the excitement of purchasing a home is unmatched! We all spend months deciding on a home before investing our hard-earned cash and life savings. But your path to buying a home doesn’t end there. Most of us aren’t aware of the paperwork we’d need to finish after a purchase.
Managing the numerous legal documents that must be completed to purchase a home is a very time-consuming procedure. Property tax records fall under this category of legal records. Even though the municipal authorities keep track of taxes, if a change in ownership is not made, tax revenues are generated in the prior year. If you are aware of the tax repercussions and the fundamentals of the Transfer of Property Act in India, the procedure could be simple.
Property Transfer Act of 1882
Real estate is separated into moveable and immovable categories under the Indian government’s Transfer of Property Act 1882. The law deals with property title transfer and concerns relating to real estate. If you intend to transfer immovable property, you should be informed of the legal requirements under the Transfer of Property Act.
A property deed can be transferred in 3 legal ways, i.e., Sale deed or deed of conveyance, gift deed and relinquishment deed transfer. Before any property deed transfer, it is advised to have ample knowledge about all three.
A deed of conveyance means the seller’s whole legal ownership and possession of a specific object, whether it is moveable or immovable. The assets being considered in this situation are immovable or property. The initial owner transfers all ownership rights to the buyer in exchange for fair compensation when they sign a deed of conveyance.
Apart from that, some significant aspects of the property transfer process are:-
Name change on property tax records, i.e., property name transfer
For property name transfer, you must provide the commissioner of revenue with specific documentation for changing the name of the property. Changing one’s name should take between 25 and 35 days. The attested copy of the selling transaction deed, the last tax receipt paid, the NoC from the specific housing computation, etc., are some documents needed for the operation.
Property title transfer
This is a procedure that aids in transferring title ownership from the owner of the property to the buyer when the property is bought. It is also called “dakhil kharji” in everyday speech. You have to submit the Tehsildar an application having a non-judicial stamp. A No Objection Certificate (NOC) is required to purchase property, and an affidavit is required for inherited cases.
Quitclaim property deed transfer
This property deed transfer ensures that the property is transferred without making any guarantees. The act’s primary purpose is to resolve title problems in property transfers during necessary circumstances, such as a couple breaking up.
This document assures the seller that it is the only party with the legal authority to transfer the property in question. It declares that there are no debts associated with the feature.
While the prices for these taxes and stamp duties vary between states, it is interesting to note that Maharashtra has various rates for every state within itself. The highest taxes and stamp duties continue to apply to apartments in Mumbai. Additionally, male and female owners pay varying stamp duty rates for flats in Mumbai.
Also Read : GST is now applicable at 18% on rented residential property
Seller obligations include:
- Disclosing any significant flaws in the property, if any, before the property deed transfer.
- Make all paperwork available to the buyer for inspection upon request.
- Properly conveying the property.
- Taking good care of all papers and property to ensure a seamless transfer.
- To be aware of their roles under the Transfer of Property Act of 1882.
The buyer, too, has some duties when he takes up a property
- Before the transfer, the buyer must provide all relevant information about the property.
- To timely pay the seller the purchase price.
- To cover the cost of any damage, loss, or decline in value was not the seller’s fault.
- To pay all rent and general expenses following the execution of the deed.
When asked for advice, our expert Mr.Sujeet Pandey (CSO, Goel Ganga Developments) says, “It can be challenging to transfer your property to someone else. Indian real estate buyers are unaware of when property ownership changes. For a successful property deed transfer, both buyers and sellers need to be particularly vigilant.” Additionally, they can ask their attorneys for additional guidelines under the Transfer of Property Act.