CO-OPERATIVE LAWYERS IN PUNE
*Ved Legal deals with property transfer cases such as SALE DEED, GIFT DEED, ASSINGMENT DEED, MORTGAGE DEED, and AGREEMENTS etc….since 2007. Ved Legal offers a multitude of services in the areas of Property, Co-operative and Matrimonial law and it is best known for its expertise in these fields. We have vast experience in representing our clients before concern authorities for the matters. We therefore undertake different types of property matters as mentioned above various transfers, Agreements (Rent, Lease and Leave & Licenses), Partnership Firms & Its Registration, Wills, Probates, Succession, Contracts etc.
We have enough experience in co-operative laws and property laws as well as we are specifically expertise in execution and registration process of various DEED & AGREEMENTS as well as in Registration process of Co-operative Housing/Commercial/Industrial Societies, Federations and execution of Conveyance or Deemed Conveyance thereof.
*AMENDMENTS IN THE TRANSFER OF PROPERTY ACT 1882.
Execution and registration of sale deed for an immoveable property transfers and conveys absolute title of the property in favour of the buyer. However, in certain cases, when a sale deed for an immoveable property is being executed, the concerned parties incorporate certain conditions in the document that impose restrictions or constraints on the right of the buyer to sell or transfer the property.
The Transfer of Property Act, 1882 deals with such restrictions or constraints. Any condition or limitation restraining the buyer from parting with or disposing of his interest in the property is void according to the act. Two exceptions to this rule are:
■ In the case of a lease where such restriction or condition is imposed for the benefit of the lessor, and
■ Where a property is transferred to or for the benefit of a woman who is not a Hindu, Muslim or Buddhist, with a condition that she shall not have power during her marriage to transfer or create any encumbrance in the sale of property transferred to her
The above mentioned rule has been incorporated into the Act to encourage sale and purchase of property without restriction on future transfer. It is based on the basic principle that transferring a property cannot be separated from giving the beneficial ownership of the property to the transferee/buyer. Therefore, the condition by which an absolute restraint is imposed against the transfer of that property is considered to be void. Selling or transferring the property is an inherent right of every owner and restrictive conditions cannot be imposed on him or her.
One of the examples of absolute restraint can be where A ( owner of a property) agrees to sell it to B (the buyer)for 1 lakh. While executing of the sale deed, A puts a condition in the sale deed that if B ever intends to part with or sell or transfer the house in the future, B must sell the house to A or heirs of A and to no one else. Such a condition would fall in the category of absolute restraint as it affects the beneficial enjoyment of the house by B. Beneficial enjoyment of the house by B includes his right to sell it or dispose it in any other way.
The consistent view of the courts has been that an absolute restraint is void but a partial restraint is not.
For applicability of this rule, two essential conditions are required: ■ There must be a transfer of property and ■ There must be a condition which absolutely restrains the transferee/buyer from alienation/transfer of such property This rule applies to only those conditions which impose an absolute condition on the alienation/ transfer of property. However, there may be certain conditions, which partially restrain the right of the owner of the property to alienate/transfer the property. Such specific conditions which partially restrain the owner from alienating/ transferring the property have been held to be valid by various courts on various occasions.
*PAPERS/DOCUMENTS REQUIRED FOR PROPERTY REGISTRATION IN PUNE
The following papers and documents are required for the registration of property.
Adjudication is a process which evaluates a market value of a property and hence ascertains the stamp duty by collector of stamps. It is better to get the document adjudicated in case the building is very old and proper depreciation is not given by the sub-registrar.
NO OBJECTION CERTIFICATE
A No Objection Certificate (NOC) is required under the Urban Land Ceiling Act, if the land transferred exceeds 500 mtrs in the Pune City, If the land belongs to a Government Body or Semi-Government body or Charitable Trust then the NOC of the body is also required.
PROPERTY CARD OF THE LAND
A Property Card of the land on which the property is being registered is situated is necessary. This requirement is irrespective of whether land is sold or the building is being sold or any other part of the building is being sold and also irrespective of whether the seller of the property is recorded as the owner on the property card or not. In other words, even the flat owners are expected to produce this paper at the time of registration.
PROOF OF OLD CONSTRUCTION
If you are going to purchase and old property then you may claim the benefit of depreciation during the adjudication procedure. For that, the documents required are
–Municipal Assessment Bill Of The Building,
–Building Completion Certificate
— Original registered agreement between the builder and original purchaser of that flat or of any other flat in that building
As per the valuation the registration fee is to be paid in cash to the sub-registrar at the time of registration. The fees are prescribed in the Registration Act, 1908 which is 1% of the market value or up to Rs. 30,000/- which is accepted by a Challan.
PROOF OF IDENTITY
Any proof of identity such as voter id card, PAN card, driving license, passport etc are required during the registration procedure.
Original Stamp Duty Payment Receipt
Photocopy of the Deed and Butter Paper
*TRANSFER OF PROPERTY LAWS….
Land is a subject falling within the powers of the State Governments under the Constitution of India 1 and hence, property laws in India may differ from State to State. Besides the local laws, several laws enacted by the Central Government also govern acquisition and ownership of property (including an interest in property) through purchase/sale, transfer, mortgage, inheritance or gift.
When a person acquires or owns an immovable property, the law also give him/her the right to use, lease, sell, rent or transfer/gift of the land. The owner also has a right to mortgage his immovable property as a security for loans. However, there are some laws which restrict the type of use a land can be put to, e.g., a land may be used only for residential or commercial purposes to prevent haphazard/unorganized growth of cities and towns. Laws in some of the States prevent/restrict outsiders from acquiring property within the State. Restrictions are also placed on non-agriculturists from acquiring agricultural land. There are also other laws which prescribe rules and regulations for protection of environment or which provide for approval of building plans/designs so as to protect people from natural or manmade hazards. Some laws like the Registration Act, 1908, also lay down provisions governing registration of property transactions so as to keep proper records of ownership of property in the public domain.
The Transfer of Property between any two parties is governed by the Transfer of Property Act, 1882. Both these parties need to be alive for transfer under the Act. In case of transfer of a property of a deceased person, Succession Laws as per the religion of the deceased will be applicable.
*PROPERTY LAW CASES / PROPERTY TRANSFER INCLUDES ALL MOVEABLE OR IMMOVABLE PROPERTY CLAIMS/SUITS.
The Indian Constitution does not recognize property right as a fundamental right. In the year 1977, the 44th amendment eliminated the right to acquire, hold and dispose of property as a fundamental right. However, in another part of the Constitution, Article 300 (A) was inserted to affirm that no person shall be deprived of his property save by authority of law. The result is that the right to property as a fundamental right is now substituted as a statutory right. The amendment expanded the power of the state to appropriate property for social welfare purposes. In other words, the amendment bestowed upon the Indian socialist state a license to indulge in what Fredric Bastiat termed legal plunder. This is one of the classic examples when the law has been perverted in order to make plunder look just and sacred to many consciences.
Indian experiences and conception of property and wealth have a very different historical basis when compared to western countries. The fact the present system of property as we know arises out of the peculiar developments in Europe in the 17th to 18thcentury and therefore its experiences were universally not applicable. A still more economic area in which the answer is both difficult and important is the definition of property rights. The notion of property as it has developed over centuries and it has embodied in our legal codes, has become so much a part of us that we tend to take it for granted, and fail to recognize the extent to which just what constitutes property and what rights the ownership of property confers are complex social creations rather than self-evident propositions.
Transfer of Property
If you want to transfer registered land or property, you must use the correct form depending on whether you are transferring the whole or part of the actual land or property. You will need to send us a completed form TR1 if you wish to transfer: the whole of the land/property a share of the property/land by adding someone to the ownership, for example, on marriage or civil partnership when the current owner(s) is transferring to themselves and their new partner a share of the property by removing someone from ownership, for example, when a relationship breaks down and one or more of the current owner(s) are transferring to the remaining owner(s) a share in the property/land by adding additional owners, for example when E and F want to add G and H to the ownership, so E and F transfer to E,F G and H, a share in a property, for example, when I J and K own the property/land and I no longer wants to be an owner so I, J and K transfer to J and K.
Having an authorized property without any legal issues is very important for a new property investor. With an increasing number of frauds in a land sale, it is quite difficult to sense the trouble at the initial stages. In such cases, one of the most important legal security towards the ownership of the property will be the sale deed. It is mandatory that every investor is aware of the importance and the basis of a sale deed. This will protect him from being cheated by any developers and owners.
While preparing property agreements you bear in mind some basic points. This not only helps you in ensuring the validity of an agreement but also saves time and avoids unwanted delays from the seller. Here are some tips that help you to ensure the validity of your property.
1. Terms for Payment
The buyer and seller have to agree to the terms of the price and other expenses with regard to the transfer of property. The document must contain the terms and method of payment agreed by both buyer and seller, the time required for payment of the last installment of property. The lawyers of both the buyer and seller must go through the documentation and sign them.
2. Transfer Title of Property
The title of the property is an important document for the sanction of mortgage or loan from the bank. The title of property should be transferred to the buyer’s name once the seller receives the amount agreed with the buyer. Transfer of title of the property is the last step in the transaction before transferring the property. Seller has to register the property in the buyer’s name in local registrar office or under whichever jurisdiction the property belongs to.
3. Stamp Duty
Stamp duty rates are fixed for properties by the authorities. The rate may vary from state to state. The buyer has to ensure that seller has registered the property in buyers name on the rate levied for the property transferring.
4. Sales deed
Sales deed is an agreement between the buyer and seller. One needs to go through all the requisite documents in detail with professional help If any property has multiple owners, then each owner has to sign on the documents.
(B) To Issue search title Reports
A title search is a process that is performed primarily to determine the answer to three important questions: Does the seller have a saleable interest in the property? What kind of restrictions or allowances pertains to the use of the land (real covenants, easements, or other servitudes)?
Do any liens exist on the property which needs to be paid off at closing (mortgages, back taxes, mechanic’s liens, or other assessments)?
Anyone may do a title search. Documents concerning conveyances of land are a matter of public record. These documents are maintained in hard copy format or sometimes scanned into image files but the information contained within the documents is typically not available in a data format as the records are descriptions of legal events which contain terms, conditions, and languages in excess. It is often the case
that people choose to contact a title company or attorney to conduct an exhaustive title search. The process of performing a title search involves accessing the official land records for the subject property. Each record is a document evidencing an event which occurred in the history of the property. A deed records an event of property transfer, mortgage documents the collateral interest of a home loan, and a lien documents a claim against the property in favor of another. In each recorded event, the document indicates parties of grantor and grantee. The grantor is the party transferring away property rights, and the grantee is receiving property right. In the case of a deed, the grantor would typically be the property seller, and the grantee the buyer. A mortgage grantor is the borrower of the loan since they are giving away property rights to the lender, or grantee.
(C) Property Claims/Suits
Property rights are rights over things enforceable against all other persons. By contrast, contractual rights are rights enforceable against particular persons. Property rights may, however, arise from a contract; the two systems of rights overlap. In relation to the sale of land, for example, two sets of legal relationships exist alongside one another: the contractual right to sue for damages, and the property right exercisable over the land. A minor property rights may be created by contract, as in the case of easements, covenants, and equitable servitudes. A separate distinction is evident where the rights granted are insufficiently substantial to confer on the non-owner a definable interest or right in the thing. The clearest example of these rights is the license. In general, even if licenses are created by a binding contract, they do not give rise to property interests.
*SALE OF IMMOVABLE PROPERTY
Ved Legal comprises of a dedicated team of experts. We offer a multitude of services in the areas of Co-operative and Property law, but we are best known for our expertise in the Co-operative field i.e. Society Formation/Registration as well as Deemed Conveyance, Conveyance thereof. We have vast experience in representing our clients in matters of Society Formation, Deemed Conveyance, and Recovery. We also undertake different types of property matters including Conveyances, Agreements (Rent, Lease and Leave & Licenses), Partnership Firms & Its Registration, Wills, Probates, Succession, Contracts etc..
There are various ways through which you can transfer a property that you own. It could be by way of sale, Will or gift. A commonly used method, especially when transferring to a family member or friend, is executing a gift deed in favour of the recipient. Though no monetary transaction is involved, it is still necessary to register the gift deed to make the transfer valid.
1) At time of Sale of Immovable Property, we come across the market value of the property. What exactly is the meaning of market value of property?
It means the price which such property would have fetched if sold in open market on the date of execution of such Document or the consideration stated in the document whichever is higher. However the Stamp office uses Ready Reckoner for referring to prevalent value of the property.
Stamp Duty is paid on the Market Value of the property and not on the amount of consideration stated in the Document.
2) Why Stamp duty is required to be paid?
It is kind of Tax like Sales Tax or Income Tax. And it must be paid in full and on time to the government. When there is a delay in payment, penalties are imposed. If it is properly paid as per the approved rate and after ascertainment of market value of the property, then the instrument / document/ agreement is treated as duly stamped document which can be admitted as evidence in any lawful transaction or in the court. if they are not properly stamped, Court or the Competent Authority may impound the same or will not be accepted as evidence.
*TRANSFER OF PROPERTY ACT IN INDIA
The Transfer of Property Act governs the transfer of property by any means in India. Property can be transferred by sale, mortgage, exchange, lease or gift. All such property transactions are governed by the Transfer of Property Act.
As per the Act, a sale is transfer of ownership of property in exchange for a price paid or promised to be paid. Any sale of property must be made only by a written and registered instrument like sale deed. On execution of a property transfer document, delivery of the immovable property takes place when the seller places the buyer, in possession of the property to complete the property sale transaction.
It is important to note that an agreement for sale of property does not amount to sale of property, as it does not, of itself, create any interest in or charge on the property.
Mortgage of Property
Mortgage is the transfer of an interest in an immovable property for the purpose of securing a loan or the performance of an engagement. Hence, though mortgage does not transfer the property to a third-party, it creates an interest in the immovable property. More about property mortgage laws in India.
Lease of Property
Lease of property is a transfer of right to enjoy the property, for a certain period of time or in perpetuity, for consideration paid or promised by the transferee. In a lease transaction, the owner of the property is the transferor and the tenant is the transferee. In the absence of a lease agreement, the lease of agricultural or manufacturing property is deemed to be a lease from year to year, terminable by either party with a six months notice. Lease of immovable property for any other purpose is deemed to be a lease from month to month, terminable by either party with fifteen days notice. Lease of property for any term exceeding one year or reserving a yearly rent must be made as a registered lease agreement. All lease agreements must be executed by both the lessor and the lessee.
Exchange of Property
When two persons agree transfer the ownership of a property for the ownership of another property, neither thing nor both things being money only, then the transaction is called an “exchange” of property. A transfer of property in completion of an exchange can be made only in a way provided for the transfer of such property by sale.
Gift of Property
Gift of property is when a transfer or property happens voluntarily and without consideration. In a gift of property, the person giving the property is called the donor and the person accepting the property is called the donee. All gift of property must be made by way of registered instrument signed by or on behalf of the donor and attested by at least two witnesses. The acceptance of a gift of property must be made during the lifetime of the donor and while he is still capable of giving.