Why transfer of Property?

Why transfer of Property

Partition of a property is an act of dividing up a concurrent land into separate portions representing the proportionate interests of the renters either by a court order or otherwise.

In India, there are two modes of transferring a property. They are:

  • Voluntary Transfer
  • Involuntary Transfer

In the voluntary transfer of property, the owner will divide the property willingly to a new owner by ways of:

  • for consideration e.g. by lease, mortgage, sale, or exchange,
  • by gift, and
  • by Will

In the involuntary transfer of property, the owner transfer property without his/her consent as per the judgment of a federal court.

How to transfer property?

The property transfer is an important and equally complex task for the owners as to understand how to transfer one’s ownership rights to another individual, regardless of whether it is a small item of little value or a large real estate property that costs millions of dollars. The complexity of the process rises if the item to be transferred is more expensive.

NRI’s who have few or no trusted representatives for transfer of property in India, determinants like the restriction of time, inability to often travel, little information and rising real estate prices in India attracts more complications. They often face problems of unlawful possession, illegal transfer or even illegal sale of their property by third parties.

Following are the legal ways on how to transfer property

Basic Property Transfer

Real estate has been the most complicated subject matter for property transfers in India. The most common means of transferring ownership is through a Bill of Sale. It is a legal document that outlines the contract between the buyer and the seller arranging a for the transfer of property/real estate for currency.

The property sales stand apart from the Bill of Sale as it usually has to be witnessed or notarized, depending on the regulation of the state.

Transfer of Property as Gift

Another way of transfer of assets is through the gift. This mode of transfer of ownership describes that the donor does not receive the full remuneration in return. It is a different type of transfer from the sale. Family members most commonly accomplish this way of transfer among themselves. Gifts of real estate should also be notarized or testified.

Transfer through Relinquishment

Relinquishment of rights regarding a given piece of property or land can be considered a legal form of property transfer. For this purpose also a document mentioning waiving of rights by you or another party has to be testified or notarized to be effective. However various jurisdictions can and do regulate the matter differently. It is therefore always better to consult a lawyer to see if relinquishment is possible, and if so, what the necessities are.

Transfer through a Will

A Will is a document that states the form of transfer of property that takes place at the moment or after the death of the owner. The full assignment of rights may rest on the beneficiary accepting the Will’s terms and the way in which they obtain the property.

It is important to note and identify that all modes of property transfers are subject to taxation. It is imperative to comply with the tax regulations more now after GST to avoid unpleasant surprises. Researching one’s state laws and understanding them is one tall task for a layman, and ensuring that the transfer complies with them is another. Therefore, to make sure that the ownership is transferred correctly with appropriate means, one must consult a good lawyer.

Travel to India not mandatory for partitioning property in India

Partition of shared ownership of property in India

Partition of shared ownership of property in India, whether between family members or co-owners, is a common phenomenon. With the trend of Nuclear families on the rise, it is becoming more frequent for people to have to deal with a fight for assets or carry out partition mutually.

Dilemma of Partition of shared ownership of property among family members

Shared Ownership Partition of Property in India

We have had several such instances of people trying to battle it out and get their rightful shares.

  • Jayant Bhatia is yet another citizen of India who faced problems related to Shared Ownership of Property and its division.
  • He and his family members had to go through a lot of grind to get their property. Unable to get suitable assistance from anywhere, he contacted the Global Support Centre of NRI Legal Services in Birmingham.
  • He elucidated the issues he was facing concerning his property in Pune, Maharashtra.
  • His grandfather owned their family property, and after his death, it was passed on jointly to Jayant’s father and aunt.
  • Jayant and his family had been living a very comfortable life in the UK. They had no interest in going back to India and thus were interested in selling their land.
  • To their utter shock, his aunt (custodian of the property in India) and her family started creating problems for them on this matter.
  • A few years back, in 2007, he even filed a case against them hoping to get justice. Unluckily they lost the case. On top of that, they couldn’t even get a stay order.

A way out of the predicament

Jayant was utterly baffled and annoyed by the uncooperative attitude that he faced from all directions. He was determined to find a definite way out of this situation and took his friend’s advice to reach out to the NRI Legal Services for help.

He told us that he didn’t want anything beyond what was rightfully his. All he wanted was a fair share in the shared ownership of property. The total property totalled to about 150-acre land and four shops that he owned as much as his aunt. He was quite shocked and disturbed that even though they were members of the same family, they couldn’t find out a way amicably.

partitioning property in India

The legal team in action

Without further ado, the NRI Legal Services team got into action and collected all the related information from Pune. They had several meetings and discussions and made sure that all the relevant documents were present, and they weren’t missing out on any detail. The lawyers carried out the valuation of the property and told his aunt about different possibilities for the division.

The most comforting thing for Jayant’s father was that they were spared the hassles of travelling back and forth to India to sort out the matter. Regular calls and emails, and additionally video calls, helped them stay completely informed about the situation. All the details about the progress and status of the case were given to Jayant and his father without any delay. They did not have to pursue the legal services team to get the information. The team was efficient, dedicated and extremely punctual.

All that it takes…

The transparency, proficiency and hard-work displayed by the team made it possible to get the desired results sooner than ever expected. The backbone of the success in this case was timely communication. The client was informed about the intricacies of the process throughout the case. This made Jayant well aware of the formalities involved in partition of shared ownership of property. He now educates people on the need and benefits of getting these done well in time.