Transfer of property has been an issue in every house, people who possess whether movable or immovable property deals with the dilemma of transferring its ownership. In India, the transfer of immovable property is regulated by the Transfer of Property Act, 1882. It lays down various provisions, means, and modes on how to transfer your property to someone. In this article, we have laid down various modes through which one can transfer property within the ambit of the law.
Any property transfer made through sale or purchase is to be documented through the sale deed. It is an important legal document governed by the Registration Act and is imperative for both the transferor and the transferee. The deed includes all important details of buyer and seller like name and address, details of the property under question, location and address of the property, the total area of the property, and details of construction if it is a house.
The deed should disclose that the property under sale is free from encumbrances and legal disputes. In case of any outstanding loan, the seller should settle it before the transfer. In addition, the sale deed also includes an amount to be paid for the purchase of the property, the advance amount paid, the time given for payments, and details of the bank.
This instrument is used when the owner wants to wilfully transfer the property to the co-owner and relinquishes his share in the property. Once signed by both the parties and registered, the relinquishment deed is irreversible, even if there is no monetary exchange involved.
Tax and stamp duty is levied on the amount of the property or percentage of the property relinquished by the co-owner and not on its total value. For instance, if an owner holding a 20 percent share in the property relinquishes the property, then the stamp duty will be levied on only 20 percent of the property value.
This deed is documented when the buyer wants to transfer the property without any exchange of money, especially when gifting the property to someone. The transferor should draft the transfer of possession title on a stamp paper and should get it attested by two witnesses before its registration. The gift deed should be registered with the sub-registrar and once the deed is registered, the transfer is irrevocable. If you might want to gift the property to any of your blood relatives, a Gift deed can be used. In the case of immovable property, it is required to register the Gift Deed as per Section 17 of the Registration Act, 1908.
This kind of transfer is unavoidable. When you gift the assets like land, it belongs to the beneficiary or receiver of the gift and you cannot switch the transfer or even ask for money-related compensation. It can be a cost-effective method of transferring ownership.
Will or Inheritance
Transfer of property can be made through a will too. However, this will take place only after the lifetime of the individual drawing up the will. The recipient of the property through a will not bound to pay any taxes. A will can be revoked or replaced any number of times during the lifetime of the person drawing it up.
After the death of an individual, the successor needs to apply to the concerned civil authorities with a copy of the will, succession certificate, and death certificate for completing the property transfer process.
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Partition Deed of Settlement Deed
Partition Deed is executed by the co-owners of the land when a court order or order of a local revenue authority has to be implemented. In the case of Settlement Deed, however, the property is owned by a third person and is settled for individuals who do not have any past interest in the said property and the share of the heir is as per the desires of the settler.
Unlike WILL, Settlement is a non-testamentary report which becomes operative immediately. Will is a testamentary file, which becomes operative after the expiration of its owner. Also, the will is revocable and can be modified by the testator, whereas the settlement deed is unalterable.