The Transfer of Property Act governs the transfer of property by various means. Sales, mortgages (other than by way of deposit of title deeds) and exchanges of immovable property are required to be registered by virtue of the Transfer of Property Act. Therefore, all the above documents must be in writing and registered. The Act provides for appropriate documents to show that the provisions of this Act are not attracted or should be produced to the Registering officer before registering instruments compulsorily registrable under the Registration Act.
This legislation was repealed in 1999. The Repeal Act, however, shall not affect the vesting of the vacant land, which has already been taken possession by the State Government or any person duly authorized by the State Government in this regard under the provisions of Urban Land Act. The repeal of the Act, it is believed, has eliminated the large amount of litigation and released huge chunks of land into the market.
Trasfer Of Property
If you want to transfer registered land or property, you must use the correct form depending on whether you are transferring the whole or part of the actual land or property.
You will need to send us a completed form TR1, if you wish to transfer:
the whole of the land/property
a share of the property/land by adding someone to the ownership, for example, on marriage or civil partnership when the current owner(s) is transferring to themselves and their new partner
a share of the property by removing someone from ownership, for example, when a relationship breaks down and one or more of the current owner(s) are transferring to the remaining owner(s)
a share in the property/land by adding additional owners, for example when E and F want to add G and H to the ownership, so E and F transfer to E,F G and H,
a share in a property, for example, when I J and K own the property/land and I no longer wants to be an owner so I, J and K transfer to J and K.
Having an authorized property without any legal issues is very important for a new property investor. With a number of frauds and illegal lands being sold to people, it is quite difficult to sense the trouble in the initial stages. In such cases one of the most of the important legal protection towards the ownership of the property will be the sale deed. It is mandatory that every investor should know the importance and the basis of a sale deed. This will help him against being cheated by any developers and owners.
What is Sale Deed
This deed is the third type of deed and is also known as the bargain deed. It is one of the most valued legal documents in the sale or purchase of a property. The sale deed is governed by the Registration Act and should be considered important by both the buyer and the seller. A property without a signed sale deed is incomplete and cannot be sold or purchased by either the buyer or the seller. A sale deed is signed only after the satisfaction and co-operation by both the parties on various terms and conditions.
It states that the grantor has every right to convey title but cannot make any warranties against encumbrances. This kind of deed is implied by the court officials who hold the property by force of law rather than just the title.
How does a sale deed work?
The jurisdictional sub-registrar?s office registers the sale deed and at the time of registration there should also be witnesses present apart from the buyer and the seller. In case the buyer or the seller is not in a position to present them physically, they can present their nominated agent who will be empowered with a legal power of attorney in order to execute the sale deed. The deadline to produce the original documents will be four months from its execution. In case the documents are not produced within the given period, the registrar will allow a grace period of another four months for the documents to be produced. Further, this will also levy a maximum penalty of 10 times the registration charges related to the property.
At the time of property selling the buyer pays charges like the stamp duty and the registration charges. Whereas the seller pays for the property tax, the cess, water and electricity charges. Property law is governed by a large body of complex and sometimes very archaic law. Indeed, some of what is called ‘old property law’ derives directly from rules developed during the medieval period in England. It often surprises people to learn that property in Australia cannot truly be owned (except by the Crown). Rather, people have various rights and interests in land that may be transferred in various ways. Property transactions and property rights are common areas of legal dispute so it is important to have sound legal advice when dealing with property. Property law is the area of law that governs the various forms of ownership and tenancy in real property (land as distinct from personal or movable possessions) and in personal property, within the common law legal system. In the civil law system, there is a division between movable and immovable property. Movable property roughly corresponds to personal property, while immovable property corresponds to real estate or real property, and the associated rights and obligations thereon.
Agreements & Contracts
While making property agreement you have to keep some basic points in your mind. This not only helps you ensuring validity of agreement but also in saving time and avoids unwanted delays from seller. Here are some tips that help you to ensure the validity of your property.
1.Terms for Payment
The buyer and seller have to agree upon the terms on the price and other expense for transfer of property. The document must contain the term and method of payment agreed by both buyer and seller. The time required for payment of last installment of property. The lawyer of both buyer and seller must go through the document and has to sign them by both.
2.Transfer Title of Property
Title of property is important thing for the sanction of mortgage or loan from bank. The title of property should be transferred to buyers name when the seller receives the amount agreed by buyer. Transfer of title of property is last step in the transaction or transferring the property. Seller has to register the property in buyers name in local registrar office or under which jurisdiction the property belongs to.
Stamp duty rates are fixed for properties by the authorities. The rate may vary from state to state. The buyer has to ensure that seller has registered the property in buyers name on the rate levied for the property transferring.
Sales deed is an agreement between buyer and seller. You need to go through all the papers and things which are written in it. You can show them to one or more experts before signing them. If any property has one or more owner, each person has to sign on the documents.
To Issue search title Reports
A title search is a process that is performed primarily to determine the answer to three questions:
Does the seller have a saleable interest in the property? What kind of restrictions or allowances pertain to the use of the land (real covenants, easements, or other servitudes)?
Do any liens exist on the property which need to be paid off at closing (mortgages, back taxes, mechanic’s liens, or other assessments)?
Anyone may do a title search. Documents concerning conveyances of land are a matter of public record. These documents are maintained in hard copy paper format or sometimes scanned into image files, The information within the documents is typically not available as data format as the records are descriptions of legal events which contain terms, conditions, and language in excess of data. It is often the case that people choose to contact a title company or attorney to conduct an exhaustive title search. The process of performing a title search involves accessing the official land records for the subject property. Each record is a document evidencing an event which occurred in the history of the property. A deed records an event of property transfer, a mortgage documents the collateral interest of a home loan, and a lien documents a claim against the property in favor of another. In each recorded event, the document indicates parties of grantor and grantee. The grantor is the party transferring away property rights, and the grantee is receiving property right. In the case of a deed the grantor would typically be the property seller, and the grantee the buyer. A mortgage grantor is the borrower of the loan, since they are giving away property rights to the lender, or grantee.
Property rights are rights over things enforceable against all other persons. By contrast, contractual rights are rights enforceable against particular persons. Property rights may, however, arise from a contract; the two systems of rights overlap. In relation to the sale of land, for example, two sets of legal relationships exist alongside one another: the contractual right to sue for damages, and the property right exercisable over the land. More minor property rights may be created by contract, as in the case of easements, covenants, and equitable servitudes.
A separate distinction is evident where the rights granted are insufficiently substantial to confer on the nonowner a definable interest or right in the thing. The clearest example of these rights is the license. In general, even if licenses are created by a binding contract, they do not give rise to property interests.
Different types of transfers have different stamp duty payable on it such as stamp duty payable on Sale deed will be different then stamp duty payable on Gift deed and Release deed. Hence stamp duty is calculated according to the type of transfer and it varies from place to place and same can be also ascertained by referring The Bombay Stamp Act, 1958. A stamp duty paid agreement is considered a proper and legal document and such gets evidentiary value and is admitted as evidence in courts.
The State Government at the beginning of each calendar year fixes market value of all properties in an area and the market value so fixed is to be accepted as the basis of calculating stamp duty in respect of an instrument by virtue of which the property is dealt with.
As soon as the property is purchased one should apply for change in various government documents such as 7/12 & 6/12 extracts, electricity department and before all other government authorities for update in their records after paying necessary fees for the same.