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.

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