Property deeds are legal documents that establish ownership of a property and the terms and conditions of its transfer. In India, property transactions are governed by various laws and regulations, and understanding the different types of property deeds is essential when acquiring or selling a property. In this blog, we will discuss the different ways of acquiring or selling property in India and the various steps involved in the process.
Acquiring Property in India
There are different ways of acquiring property in India, and some of the most common ones are as follows:
- Buying from a Developer: When buying a property from a developer, the first step is to identify a suitable property and negotiate the terms of the purchase. Once the terms are agreed upon, the developer will provide a sale agreement or a builder-buyer agreement, which outlines the terms and conditions of the purchase. The buyer will have to pay the booking amount and sign the agreement. The developer will then issue a receipt for the payment, and the buyer can start paying the installments as per the agreement.
- Buying a Resale Property: When buying a resale property, the buyer needs to verify the property documents and ownership status before making the purchase. The buyer and seller will have to negotiate the terms of the purchase, and once agreed upon, the buyer will have to pay the token amount to the seller. The buyer will then have to verify the property documents, obtain a no-objection certificate (NOC) from the society or builder, and make the final payment to the seller. Once the payment is made, the sale deed will be executed, and the ownership will be transferred to the buyer.
- Inheriting Property: Inheriting property is another way of acquiring property in India. In such cases, the legal heirs of the deceased owner will have to apply for a succession certificate from the court. Once the succession certificate is obtained, the legal heirs can execute a transfer deed or a gift deed to transfer the ownership to the desired heir.
Selling Property in India
Selling a property in India involves the following steps:
- Identifying a Buyer: The first step in selling a property is to identify a suitable buyer. The seller will have to advertise the property, negotiate the terms of the sale, and agree upon the sale price with the buyer.
- Executing the Sale Deed: Once the terms of the sale are agreed upon, the seller will have to execute a sale deed or a transfer deed, depending on the nature of the transaction. The sale deed will outline the terms and conditions of the sale, including the sale price, payment terms, and any other relevant details.
- Registering the Sale Deed: The sale deed will have to be registered with the sub registrar’s office in the jurisdiction where the property is located. The buyer and seller will have to appear before the sub-registrar and sign the sale deed in the presence of two witnesses. The seller will have to pay the stamp duty and registration fees, and the sub-registrar will then stamp the sale deed and record it in the official records.
Sale Deed or Transfer Deed
A sale deed or transfer deed is a legal document used when a person wishes to sell or transfer their property to another person. It outlines the terms and conditions of the sale or transfer, including the purchase price, payment terms, and other details such as any contingencies or conditions that must be met before the sale is finalized. The sale deed is executed by both parties and is registered with the appropriate authorities to make it legally binding.
A title deed is a legal document that proves the ownership of a property. It includes details such as the location, boundaries, and any encumbrances or liens that may exist on the property. The title deed is important in selling or transferring property because it proves that the seller has the right to sell the property and that the buyer will receive a clear title to the property. The title deed is usually kept in the custody of the owner of the property or a designated custodian.
A gift deed is a legal document used when a person wishes to transfer their property to another person as a gift. It is used in cases where there is no exchange of money or consideration involved in the transfer of ownership. The gift deed outlines the terms and conditions of the transfer, including the nature of the gift, the relationship between the giver and the receiver, and any other relevant details. A gift deed is executed by both parties and is registered with the appropriate authorities to make it legally binding.
A partition deed is a legal document used when co-owners of a property wish to divide ownership. It is commonly used in cases where co-owners no longer agree on how to use or manage the property. The partition deed divides the property into separate portions, with each co-owner owning a specified portion of the property. The partition deed outlines the terms and conditions of the division, including the nature of the division, the relationship between the co-owners, and any other relevant details. A partition deed is executed by all co-owners and is registered with the appropriate authorities to make it legally binding.
Deed of Adoption:
This deed is used when a person wishes to adopt a child legally. It is a legal document that transfers the rights and responsibilities of a child from the birth parents to the adoptive parents. The deed of adoption is registered with the concerned authorities to make the adoption legally binding.
Deed of Quitclaim:
A deed of quitclaim is a legal document used to transfer any interest or right in a property to another person without making any warranties or guarantees about the ownership. The person who signs the quitclaim deed is relinquishing all rights and interests in the property to the other party. A deed of quitclaim is often used in cases where a person wants to give up their claim to a property without making any representations about its ownership.
Deed of Trust:
A deed of trust is a legal document that creates a trust and transfers the ownership of a property to a trustee who holds it for the benefit of the beneficiary. The trustee manages the property on behalf of the beneficiary according to the terms of the trust deed.
Deeds of Court Order:
This type of deed is issued by the court in cases of legal disputes or litigation involving the property. The court order deed outlines the terms and conditions of the court’s decision regarding the property and the parties involved.
Deed of Fiduciary Trust:
This is a legal document that creates a fiduciary relationship between the trustee and the beneficiary, and the trustee holds the property in trust for the beneficiary. The trustee has a legal obligation to manage the property in the best interest of the beneficiary.
Deed of Grant:
A deed of grant is used to transfer ownership or grant specific rights to a property. The grantor transfers the ownership or rights to the grantee in exchange for consideration.
Deed of Conveyance:
A deed of conveyance is a legal document used to transfer the ownership of a property from the seller (grantor) to the buyer (grantee). It outlines the terms and conditions of the sale and transfer of ownership, including the consideration, description of the property, and any warranties or guarantees provided by the seller. The deed of conveyance must be registered with the concerned authorities to make the transfer legally valid.
Power of Attorney Deed:
A power of attorney (POA) is a legal document that gives someone else the authority to act on your behalf in specific matters related to your property. The POA deed outlines the powers and limitations of the person appointed as your attorney.
Deed of Relinquishment:
A deed of relinquishment is used to transfer ownership or any interest in a property to another person. This type of deed is often used in inheritance cases, where one person renounces their claim to a property in favor of another. The deed of relinquishment must be registered with the concerned authorities to make the transfer legally valid.
Deed of Mortgage:
A deed of mortgage is used when a property owner borrows money from a lender and pledges the property as collateral. The deed outlines the terms and conditions of the mortgage, including the repayment terms, interest rate, and consequences of default.
Deed of Lease:
A deed of the lease is a legal document used to create a lease agreement between the landlord and the tenant. The lease outlines the terms and conditions of the tenancy, including the rent, payment terms, and duration of the lease.
Deed of General Warranty:
A deed of general warranty is a legal document used to transfer ownership of a property from the seller to the buyer. It includes a guarantee from the seller that they have the right to sell the property, and that there are no outstanding claims or encumbrances on the property. The deed of general warranty provides the buyer with protection against any future claims or disputes related to the property.
Deed of Special Warranty:
A deed of special warranty is similar to a deed of general warranty but with some key differences. In a deed of special warranty, the seller guarantees that they have not done anything to impair the title of the property during the time they owned it. However, they do not guarantee that there are no claims or encumbrances on the property before they owned it. A deed of special warranty provides a limited warranty to the buyer and is often used in commercial real estate transactions.
In conclusion, property deeds are essential legal documents that play a crucial role in the acquisition and transfer of property. Whether you are buying, selling, or transferring property, it is important to understand the different types of deeds and their significance. By working with a qualified legal professional, you can ensure that your property transactions are executed smoothly and in compliance with all applicable laws and regulations.