How to Transfer Property Ownership: A Step-by-Step Guide- Transfer property ownership is the process by which a person transfers the property claim to someone else. Throughout history, we have witnessed many disputes that are caused by land and property. There have been unwanted and illegal possession of property from all sections of people, leading to hatred and generational fights. So it was very important to create a process or way in which this could be solved, and that was to have a proper claim to the property, i.e., ownership.
From the old generation to the current, transferring property is a crucial moment in anyone’s life. It marks the self-dependent beginning of an individual. It holds the ground for huge investment and is the biggest step of someone’s life, whether it is selling, gifting, or passing the property through inheritance. So it makes it very important to know the right process to avoid any future conflicts and clashes. To govern the transfer of property ownership, an Indian law was passed, which is called the Transfer of Property Act 1882.
Different Types of Property Transfer Options in India
In India, many property transfer methods are used legally to transfer property ownership form one person to another , the selling of property buying a property , gifting or inheriting it all comes under the transfer options . Some of the primary options are
Sale Deed
It is the common method of property transfer used in India, which includes a seller and a buyer involved in a legal documentation process that formalizes the transfer of ownership. The document is critical in the transaction and ensures the buyer’s legal ownership and right to claim.
Relinquishment/release Deed
In case of a relinquishment/release deed, there is a sharing of ownership between two or multiple co-workers. A relinquishment or release deed allows one owner to transfer their ownership share to the remaining co-owner. This deed is often used when a member dies without leaving a will
Partition Deed
A partition deed comes into action in dividing a jointly-owned property among its co-owners. It provides legal clarity in the partition of property.
Transfer Deed
Transfer deeds are used to transfer property ownership from one party to another. It is used to shift the right from the lender to the receiver.
Will Deed
A will deed is a process of the distribution of the property among the heirs after his demise. It provides clarity and prevents internal disputes
Gift Deed
Gift deeds are the transfer of ownership from one individual to another as a gift without any monetary exchange. It includes the gifting of shares, jewellery, or other valuable assets.
Important Documents Used for Property Transfer Ownership are
- Aadhar card.
- Passport size of both the seller and the buyer.
- Original old sale deed verified copy.
- A copy of the No Objection Certificate for the Land Ceiling Act.
- Copy of the latest property register card
- Copy of Municipal tax bill.
- Construction completion certificate
- A written contract between the builder and the building’s initial buyer.
A Step-by-Step Guide to Transfer Property Ownership in India
Here is How to Transfer Property Ownership: A Step-by-Step Guide that will help you understand the every steps involved in property deal or inheritance.
Step 1: Due Diligence
Due diligence is a process of verifying the property’s ownership, history, and legal claims. Checking the legality of the construction and the property’s compliance with local regulations, one must hire a lawyer to monitor the documents, like sale deeds, title, building approvals, and property tax receipts.
Step 2: Selling Agreement
After step 1 of due diligence, the two parties selling and buying parties, execute an agreement to sell. The various terms and conditions are included in this agreement that must be accepted by both parties, like the sale price, payment terms. Possession date, etc., to bind them legally.
Step 3: Sell deed Execution
After checking the property and coming to an agreement between both parties, a sale deed is drafted and signed by them. This is the legal document that officially transfers the ownership from the seller to the buyer. This includes the property descriptions.
Step 4: Stamp and Payment
The stamp cost is calculated based on the property’s market value or sale consideration, which must be paid by the buyer. When the amount is paid, the sale deed is registered with the local sub-registrar.
Step 5: Possession of the Property
When the stamp duty is paid, the seller is bound to hand over the possession of the property to the buyer. The buyer can claim the property on the agreed date in the terms and conditions documentation.
Step 6: Mutation of the Property
After the physical possession of the property, the new owner must initiate the mutation process.
The mutation process involves the updating and management of the property with the new owner’s name. The mutation process is done in the local municipal or panchayat office
Conclusion
In India, to Transfer property Ownership is a very important task for the person performing it, and to do it seamlessly and by maintaining the legal dignity of it is very important. The property ownership transfer among Indian families and buying from other individuals have evolved significantly; the Transfer of Property Act enabled a seamless transaction of assets for over 140 years.
The authentication of each individual involved in the property deal is very important to reduce the risk of fraud and ownership disputes. The above blogs give complete information about what transfer property ownership is, what the types of options are to do it, which government documents are needed, and the steps involved in it.