Understand The
Legal FAQs
The legalities and confusing terminology that makes your home buying process stressful are simplified here for your understanding.
Understand The
The legalities and confusing terminology that makes your home buying process stressful are simplified here for your understanding.
The building plan should be verified by the Municipal Corporation or any such competent authority along with the technical details about the area and the amenities, ownership documents (title documents), commencement certificate, RERA Registration no., etc. In case of a resale flat further documents like share certificate, maintenance receipts, rent receipts, etc. are needed to verify as well. Wherever applicable verification of occupancy certificate is also imperative. That said, the services of a competent advocate should be used as it requires to be handled by a professional.
The transactions that are a part of the conveyance or transfer of immovable property of the value of Rs. 100 ore more require a duly stamped and registration document. The entries that concern such transactions are recorded in the Register of Assurances concerned. An extract of this book for the requested period is the Encumbrance Certificate.
The buyer is liable to pay the stamp duty unless agreed upon differently by the concerned parties.
Anyone from the executors to the Instrument is required to purchase stamps under their name.
The rate at which a property can be brought in the open market on the execution date is the market value of that property. The stamp duty can be payable on the agreement value of the property or on the market value, depending on whichever is higher.
When there is complete ownership of a property it becomes a freehold property (plot or flat). Within the provisions of the laws of the land, the ownership is absolute and without any conditions, there is no lessee/lessor involved.
Under the provisions of the Transfer of Property Act, gifting an immovable property is called a ‘transfer’. The transaction needs to be registered through a Gift Deed and the applicable stamp duty as per the stamp act needs to be paid.
All material facts like any defects (if there) should be completely disclosed to the buyer by the seller. The little deeds of the property need to be produced by him as well. After the sale is completed, the seller has to deliver the possession of the property and the little deeds need to be delivered on the receipt of the price.
The purchase-money needs to be paid by the buyer to the seller.
Registration makes the transaction of an immovable property a permanent public record. While getting transfer of property it is necessary to verify if that property has been encumbered previously. The right, title or interest of a property can be acquired only if the deed is registered as per the Transfer of Property Act. And in case if the deed of transfer (which is compulsorily registrable) is not registered then it is not admissible in evidence.
The revenue document of possession/ownership, mainly of the land, that is issued by Talathi of the respective villages in which the property is located is 7/12. This document includes the name of the owner, description of the property i.e. survey no. & hissa no., area of the plot and mutation entry nos. of any encumbrances by way of loan, charge and tenure of land. It is market practice to make this document always available in the local language. The document is valid for 6 months of the date of issue.
Similar to 7/12 extract, it is also a property card that contains mainly the content that is applicable for urban areas. The City Survey officer of the respective zone issue this document. The endorsement of the area of the plot both in figures and words need to be on the document (very essential).
The transfer of an interest in the property is Lease whereas, in Leave and License, there is no transfer of an interest in the property. Any kind of interest is not created in L&L in favour of the licensee though it gives the right or license to use and occupy the property for a temporary period. The lease can be assigned but L&L cannot be assigned. Under the Transfer of Property Act and Bombay Rent Act, a heritable right is created by a Lease Agreement. Whereas this is not the case with the Leave and License Agreement.
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