Understanding the Importance of a Secure and Legal Property Transfer

Do you know that there is 70% fraud in real estate transfers compared to many other industries? Statistics state that around 11,300 people have become victims of property fraud in India in the last year.

Are you feeling afraid of whether you can be one of those in the future?

If yes, no worries. This blog with opinions from top property lawyers in India will help you understand secure and legal property transfer and its importance.

Explore the blog to learn more.

Table of Contents:     What is the process of secure and legal property transfer in India?     What is the importance of secure and legal property transfer?     Conclusion     FAQs

What is the process of secure and legal property transfer in India?

First of all it is very important to understand the process of property transfer in India to ensure secureness and legality to avoid future property disputes in India.

So, here is the overview of the process of property transfer in India.

Title Verification:

The primary step to avoid any future land dispute in India is to do title verification which is nothing but checking whether the property is in the name of the person selling it.

This involves conducting a thorough investigation to ensure that the seller has legal ownership rights and that there are no encumbrances or disputes regarding the property’s title. Title verification can be done through land records, local revenue offices, and legal professionals.

Sale Deed Drafting:

The next step is to draft a sale deed that enlists the necessary details such as purchase price, payment terms, possession date, and any other relevant clauses agreed upon by both parties.

The sale deed should outline the terms and conditions. To avoid future legal issues, it is advisable to seek the help of renowned lawyers in Chandigarh or your hometown for safe deed drafting.

Execution of Sale Deed:

On preparing the final sale deed, the official transfer of property from owner to buyer should be done by signing the non-judicial stamp paper of appropriate value as per the Stamp Act in front of at least two witnesses.

Payment of Stamp Duty and Registration Fees:

Following the sale deed sign, stamp duty, and registration fees must be paid on the sale deed as per the rates prescribed by the respective state government. Failure to pay these charges can render the sale deed invalid.

Obtain Encumbrance Certificate:

An encumbrance certificate is a crucial document that verifies that the property is free from any legal or financial liabilities such as mortgages, liens, or pending legal disputes. It can be obtained from the Sub-Registrar Office and serves as proof of clear title.

Property Mutation:

After the sale deed is registered, the buyer should apply for the mutation of the property in their name at the local municipal office or revenue department. Mutation updates the land revenue records to reflect the change in ownership.

These are the steps in involved in proper property transfer. Beyond this, both the buyer and seller must ensure compliance with applicable tax laws, such as capital gains tax, property tax, and Goods and Services Tax (GST) if applicable.

Now, why is it important to follow these property processes?

What is the importance of secure and legal property transfer?

It is very important to follow the above mentioned steps for a secure and legal property transfer for following reasons.

Ensure legal compliance:

Following out secure and legal property transfers ensures legal compliance which will avoid future legal disputes.

Legal compliance includes following the zoning laws, environmental regulations, building codes, and more. Failure to comply can result in legal disputes, fines, or even the nullification of the transaction.

As per the best advocate in Chandigarh, about 58% of property disputes can be avoided by proper legal compliance.

Financial Protection:

A secure property transfer protects the financial interests of both parties. It ensures that the seller receives fair compensation for their property and that the buyer gets what they paid for without the risk of undisclosed liens, debts, or other encumbrances.

Further, legal property transfers can aid buyers in easy housing loan and mortgage processes in the future.

As per the record of property lawyers in India, around 87% of buyers suffer when seeking banking loans for their properties due to improper proerty transfers.

Title Insurance:

A legal transfer typically involves obtaining title insurance, which protects the buyer and lender against any future claims or legal disputes regarding ownership rights. This provides peace of mind to both parties involved in the transaction.

Investment Security:

As we all know, buying property is always an investment.

A secure and legal transfer process helps safeguard these investments by providing assurances regarding the legitimacy of the transaction and the ownership rights associated with the property.

Market Stability:

Property transactions are vital to the stability of the real estate market. Ensuring that transfers are conducted legally and securely fosters trust among buyers, sellers, and investors, which contributes to overall market stability.

Taxation Issue Avoidance:

Property transfers often involve the payment of various taxes and fees, such as transfer taxes, stamp duties, and recording fees.

Following proper legal taxation of properties during property transfer will help avoid future legal taxation issues.

On the whole, the importance of secure and legal property transfer is heavy for a prosperous peaceful future.

Conclusion:

So, if you are planning to buy or sell property, then ensure secure and legal property transfer with the support of property lawyers in India and enjoy its benefits.

FAQs:

1) Why is a transfer deed important?

A transfer deed is important because it enlists all the terms and conditions between the parties to ensure avoiding future legal disputes related to the property.

2} What is the steps involved in property transfer?

• Title verification
• Property deed draft and signing
• Payment for stamp and registration
• Obtain encumbrance certificate
• Apply property mutation.

3) In which court should property dispute litigation be filed?

Property dispute litigations should be filed in civil courts. Civil courts are responsible for property-related case handling such as eviction cases, boundary disputes, etc.

4) What should be considered while hiring the support of a legal firm in case of property disputes?

While hiring legal firms for property disputes, one should check whether they have experience in handling property disputes, previous success records in property disputes, and fee estimates for handling the case.