All You Need To Know About Transferring Your Property
There are many situations and circumstances under which the owner of a property chooses to transfer the ownership rights to another person or party. Whether you choose to sell the property or wish to pass on its responsibility to someone else, it is essential that the ownership and rights over the property are transferred to the concerned party in a legally sound and secure manner.
Heres everything you need to know about transferring your property.
Any property transfer, whether commercial or residential, must be accompanied by a deed. A deed is a legal document that makes the transfer of the property lawfully enforceable.
A Memorandum of Understand (MoU) between the two parties must precede the signing of the deed. The MoU is the first legal document in the process that must be duly signed by both parties. The document should contain the details of the buyer and seller, the date on which the legal transfer agreement will be filed, the price at which the ownership is being transferred, and the grace period within which the complete amount must be paid by the buyer.
Based on the nature of the transfer, one of the following deeds is required for the lawful transfer of the property, where the rights are transferred from the seller to a buyer, or from the owner to a member of family or relative:
o Sale deed:
A sale deed is a registered document that testifies to the legal transfer of ownership of the plot from the seller to the buyer. Among other details, the sale deed must also explicitly state that the property in question is free from any encumbrances or legal disputes. The stamp duty levied on the sale deed ranges from 1-8% of the property price.
o Transfer deed:
Also referred to as the Assignment Deed, this document legally entitles the transferee not only to the property rights but also to the various benefits accruing from the property.
o Relinquishment deed:
This deed is usually prepared in the case of jointly owned property, where one party wishes to transfer all rights to the co-owner by willfully relinquishing its share in the property.
o Gift deed:
A gift deed is a document that certificates that the ownership of the property has been transferred from one party to another without the exchange of money.
The main purpose of a deed is to safeguard the rights of the transferee and to prevent any legal issues, claims or fraud in the future regarding the ownership of the property. Different deeds offer different kinds of immunity to the buyer, so it is advisable to consult a legal expert before transacting a property transfer.
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