Useful Tips to Transfer a Property

Useful Tips to Transfer a Property

When we transfer a property, one thing we need to ensure is that the act of transfer is complete. The legal formalities are fulfilled, and the rights and interests are transferred as desired.

Transfer of property 

It is an act by which one person transfers the rights and interests in a property to another. There is a change in ownership. It is done by executing a conveyance deed which may be in the form of:

  • Sale deed
  • Gift
  • Relinquishment deed
  • Will

Each conveyance deed has some legal requirements. It is valid only if the stipulated conditions are fulfilled.

Read: Corona crisis and stay at home – check your property documentation!

The decision to transfer a property needs to be taken prudently, keeping in mind the following tips: 

 Legal Assistance:  

The transfer of ownership involves precise documentation and payment of stamp duty/registration charges. All the documentation part must be handled cautiously. It is advised to take the assistance of legal professionals to avoid issues later. 

Registration of deed:

The registration of transfer deed can be optional or mandatory as per law. If it is compulsory, the deed is valid only if registered. The process of registration helps to:

  • Create evidence of ownership
  • Records the transaction for future references

The registered document of transfer is like a title deed and reflects the ownership.  

Read: Tax Benefits Of Real Estate

Contents of the deed:

The transferor can transfer all the rights or limited rights in the property. The contents of the transfer deed are, therefore, significant. They define the extent and scope of the transfer. 

Market Value of the property:

Let the professionals assess the correct market value of the property. It helps to get the right price for the property in case of sale. The sale price of the property is the primary factor to decide the stamp duty charges. 

Right of the transferor:

The transferee must ensure that the transferor has the right to transfer the property. It is essential if the owner himself is not present to execute the deed. If the transfer is through the power of Attorney, the authority should be clear and unambiguous. 

In case of Joint ownership of the property, it is significant to understand the rights of the co-owners. A co-owner generally executes a relinquishment deed to give up the share. The other co-owners get a right to that share in the property.

Read: Saving yourself from fraud while buying or selling a property

Payment of dues:

The deed must mention whether the transferor or the transferee will pay the dues of the property. All the taxes must necessarily be paid to avoid any legal trouble. 

The motive of the transfer:

The transfer deed is executed as per the purpose of the transfer. A gift deed is executed if the property needs to be transferred to relative out of love and affection. If the property is desired to be transferred as per preferences, executing a Will is the option. The sale deed is a common method to transfer property, but it involves tax payment.

Thus, to transfer property, one must decide wisely after analyzing all available options.

Corona crisis and stay at home – check your property documentation!

Corona crisis and stay at home - check your property documentation

Did you ever think that in the 21st century, there would be a time when the whole world would have to battle a tiny virus that holds the entire universe hostage?

As you stay safe and protected within the four walls of your homes, do pause and spend some time taking stock of whether your documentation of property affairs is up to the mark or not.

Whether Corona persists for a few weeks or holds us under threat for a few months, remember – your assets will stay yours only if you are particular about the detailed documents and other aspects.

Therefore in this time that you stay at home – whether you are working or not – please spend some time going through all your property documents to ensure that they are complete and credible.

Meanwhile, even in this crisis, NRI Legal Services remains connected and open to all its clients – existing and potential.

As a global legal management firm, handling crucial property matters we are constantly aware of the responsibility we have towards our clients across the world.

We have an exceptional record of delivering legal services for issues related to the immovable and moveable assets of NRIs. Besides providing justice to NRIs who are facing problems in property legal issues, it is our endeavour to reinstate faith in people residing overseas.

Our competent team of lawyers is capable of providing consultation to clients. All legal advice is given after complete reviews of all documents. An exceptional communication service network is used to give legal advice to clients.

NRI legal services step forward to provide a range of services to resolve issues related to the following – Title Search, Partition of Property, Transfer of Property, Banking And Finance matters and Tax Matters. Besides these, we can help you find solutions to any matter related to Succession Certificate, Adverse Possession, Landlord Tenant disputes and Real Estate Services.

We would suggest that all the time that you are now getting to be at home should also be used to sort out your personal and official documents. Topmost priority has to be your documentation on property.

Ask yourself – are all ‘Will’ related matters sorted out? Do you anticipate any issues regarding the partition of property in your family?

Do ensure that transfer papers and succession certificate complications are kept into consideration and you are aware of what the procedures are.

Our teams are working round the clock across various cities, well connected and in sync with each other to resolve all your queries and issues.

NRI Legal Services – at your service, all the time and through all crisis. Trust us to be there to make your life easier and smoother.

Celebrating Women’s Day: Understanding Property Rights for Women

womens day

Women have been subject to bias in property matters. Woman’s day is an opportunity to ponder over such inequalities and initiate measures for empowering women about their property rights.

Today women are financially independent. Our legal system recognizes their rights in the property as independent owners. The Government has given many relaxations like lower stamp duty rates, to encourage women ownership.  

In India various factors govern the rights of a woman:

  • Marital status
  • Property is ancestral, inherited or self-acquired
  • Property is parental or belongs to her in-laws or husband
  • Personal laws applicable to a woman
  • Rights of woman as a daughter, wife or mother

Read More: Indian Women’s Right to Property

Property Rights of Women as daughter, mother, wife:

Hindu Law:

  • A daughter is a coparcener. She has equal rights in the ancestral property of her father, as her brother, even if she is married.
  • As a wife, a woman has equal right in the property of her husband as other legal heirs.
  • A daughter in law has no right in the property of her father in law till the time her husband is alive. After the husband’s death, she gets a right in the share which her husband is entitled to get.
  • A woman who gets the property by any mode: gift, Will or inheritance, she becomes the absolute owner and is free to deal with it.
  • In the case of intestate succession, a widow has equal right in the property of her husband as her children. A widowed mother also has an equal share in the property of her son as other legal heirs.
  • The wife from the second marriage has the same rights in the property of her husband as the first wife. The second marriage must be valid under the law. 
  • The children (daughter and son) of the second wife are treated at par with the children of the first wife to inherit from the self-acquired property of their father. They do not get right in the ancestral property. 
  • The right of women in agriculture land needs a separate mention. These rights depend upon customary practices and personal laws. After the amendment of 2005 in the Hindu Succession Act, women are at par with men in the inheritance of agriculture land. But some States do not follow the amendment, and the bias continues.

Read More: Property Rights of Women as per Hindu Law

Muslim Law:

Property rights under Muslim Law are based on personal laws and customs. If a Muslim woman inherits property, she becomes the absolute owner of her share. In inheritance, she gets half the share of what male heir gets. 

If a Muslim woman wants to make a Will of her property, she cannot give away more than one-third share of her property, and if her husband is the only heir, she can give two-third share by Will. 

Other faiths:

For faiths other than Muslims and Hindus, the property rights of woman are mostly fair in terms of gender divisions.

Read More: When can or can’t a daughter stake a claim in her fathers’ property

Do’s and Don’ts of Real Estate Investments

do-and-dont

Real Estate investment has always been a lucrative option. It attracts a lot of investors for building on wealth as it promises good returns. Real estate covers housing, retail, hospitality and commercial sector.

The decision to invest in real estate requires a careful analysis of the

  • economic conditions
  • investment policies 
  • availability of funds

People invest in real estate for various reasons like:

  • Stable income (rental)
  • High Returns
  • Portfolio Diversification

Like all other investments, e.g. stocks, shares, mutual funds, etc., real estate investment has its share of risks. The risks can be minimized by taking reasonable precautions beforehand.

Read more: Increasing Benefits of Real Estate Investment in India

There are some dos and don’ts which can help to take the decision prudently to invest in real estate: 

  • Investment in real estate takes time to generate income and is highly illiquid. It is essential to ensure that there is enough cash to survive the lock-in period. The property should not become a liability. One should have sufficient savings required to deal with hidden expenses like government dues, taxes, maintenance charges etc.
  • It requires careful planning to ensure availability of funds for real estate investment. Unlike other forms of investment like stocks and shares, the risk is more. There is much more to lose than the amount invested. 
  • It is advised to understand the property where one intends to invest. For example, it is good to know if the investment is fruitful in residential or commercial real estate. 
  • It is better to go for investment in various properties than to concentrate on a single one. A person can distribute the investment in multiple properties as per the budget. A mix of residential and commercial real estate is better if finances permit.
  • It is not uncommon to find that real estate investors prefer to take professional help and legal assistance as the amount involved is huge. It also helps to handle the risk appropriately. 
  • Do not expect quick returns in the real estate market. The benefits are reaped in the long term.
  • Miscalculations and myths are common in the property market. Always collect the information from reputed sources. It is better to approach the professionals or business analysts or financial advisers, who are well informed and knowledgeable about the property market. The expected change in the market price of the property has a lot of influence on the decision of investment.
  • Do not invest simultaneously in various properties unless there is sufficient backup. Cash flow is restricted once the money is invested in real estate. It is significant to be wise before we chose the properties. One should invest in the second property only when the first one has started generating income. 
  • Always talk to property dealers or regular investors if you are a novice in the field. Taking legal advice and professional assistance proves fruitful.

Read more: NRI investments in Indian real estate sector