| Transfer of Property Process in Maharashtra |
Transfer of Property Process in Maharashtra
There are many ways through which property can be transferred and governed by applicability of various prevalent laws. Transfer of Property can be done by individual, trust or company to another. Property can be transferred in various ways like Sale, Gift Deed, Release Deed, Will, Lease, and Leave & License.
All the above mentioned modes of transfer of property have different procedures and the prevailing rules are as per the laws applicable to each of them. In most of the cases The Transfer of Property Act is applicable. It contains provision regarding the transfer of property and the procedures to be followed. There are various precautions which a buyer/vendor should take before purchasing a property some of the most important amongst them are:
Every buyer should ask and check all the deeds of Title related to property. All the documents should be properly ascertained and scrutinized so that the ownership of the seller can be easily made out. In case of any query of problem one should approach to his advocate for further assistance before buying a property.
Search report should be conducted before purchasing any property. Search Report gives the full details regarding all the previous transfers with their respective owner's details. The search report helps in proper check regarding the present owner of the property.
Before buying the property buyer should always check whether there are any encumbrances on the property proposed to be purchased. Buyer should also check if there are any outgoings to be paid for the property: Property Tax, Water and Electricity charges, Society charges or Maintenance charges.
It is very necessary that before finalizing for any property purchase one should ascertain the terms of the transfer regarding the amount for which property is transferred, the stamp duty and registration charges.
Stamp Duty:
Virtually, every document except a Will is required to be stamped under the Stamp Act. For ascertaining Stamp Duty on a particular property one can refer to ready reckoner available in market. Stamp duty is like any other revenue/Tax given to the government. It is one of the important parts of any transfer transaction.
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.
Registration of Properties:
Registration is a process of recording a copy of the document, transferring the title in the immovable property to the office of the registrar. Registration is done after parties execute the documents.
The agreement should be registered with the Sub- registrar of Assurances under the provisions of Indian Registration Act within 4 months from the date of execution of the documents. However if due to any unavoidable circumstances the document is not registered within the time limit , then the document can be registered only on making an application to the Sub- Registrar of Assurances within a further period not exceeding four months and on payment of appropriate fees.
Except in the case of transfer of shares of a co-operative housing society and housing limited company where registration is optional, virtually in all cases of transfer of immovable property like family arrangement, agreement to sell, gift deed, lease deed, leave and license agreement etc. has to be registered compulsorily under Indian Registration Act, 1908 otherwise the proper legal title will not pass on the purchaser / transferee. |
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