Property transfer is a big thing. Such a decision can be taken if the present title holder is unwell or plans for early retirement.
But, this is just an outline. To know everything about the transfer of property scroll the post down and read in detail.
Table of Contents
1. Difference between a Transferor and Transferee
There are two parties involved in the process of property transfer. The first one is the Transferor and the other is Transferee.
The transferor is the existing owner of the property. Thus, it is his/her responsibility to clear all the outstanding loan/ debt amounts before transferring the property to the new owner.
The transferee is the person who will be the next owner of the property. He/She is the person who will receive the property title once the title transfer process is complete.
2. Required Documents for Transfer of Ownership
The legal experts suggest completion of the deed registration alongside the papers of property transfer. The deed grants the property title transfer as a legal action. It is also a provision to hold a clear title and proves beneficial in the completion of the procedure.
3. Memorandum of Understanding in Property Transfer
The Memorandum of Understanding (MoU) is the first obligatory document in the property title transfer. In fact, before signing the deed, the buyer and seller must sign it. It is the document comprising of name, address, and other details of the buyer and seller. For the transfer of property, the Memorandum of Understanding is pivotal. The paper also comprises the date of agreement filing. MoU also mention the property value. Following this, the last date for the payment of the remaining amount is also cited.
4. Importance of Deed for Transfer of Property
The deed is an imperative document for the transfer of commercial and residential properties. Also, it is pivotal to secure the rights of the transferee in the future.
5. Eligibility and Categories of Title Transfer
The existing title holder can transfer ownership to a family member or a relative. The four main types of transfers are Sale, Transfer, Relinquishment, and Gift deed. You can choose any method for property ownership transfer.
6. Types of Property Transfer
- Sale Deed
A sale deed is a legal paper that states the closure of an immovable asset title transfer via sale and purchase. This document is a must under the Registration Act in India. Both, the transferor and transferee have to abide by this document. The sale deed comprises all pivotal information of the seller and buyer.
The deed has details of the name of the seller and buyer. Also, it has details such as the property address and the total area covered by the property. Also, it comprises construction details like a house or an apartment. Along with this, the deed should also declare that the property is debt-free. Which means no loan amount or debt is outstanding against the property.
- Transfer Deed
The said deed comes into foreplay when the present owner of the immovable asset wishes to transfer the title to someone. Under this type of title transfer, the property owner handover the property along with all the concurrent and upcoming benefits. However, this type of asset transfer cannot take place under the sale/purchase deed. In fact, you need to have only two witnesses for completing the signing process.
- Relinquishment Deed
Relinquish refers to giving up. Thus, this deed comes into action when an existing property owner decides to willfully transfer the property to someone else. But, once the relinquishment deed is registered, then it cannot be reserved. Hence, think twice before finalizing the property title transfer. Also, keep in mind that the decision to transfer the property cannot be rolled back, even if the monetary transaction has taken place.
- Gift Deed
This type of deed is useful when you decide to transfer the title as a gift. In short, the transfer of immovable asset to someone without any monetary exchange is said to be processed via Gift Deed. Although, the transferor is required to prepare legal documents attested by two witnesses prior to its registration.
The gift deed has to be registered in the office of the sub-registrar. Do not forget that the deed is irrevocable once it is registered.
Frequently Asked Questions (FAQs)
Who are eligible to receive a property title transfer?
A: Any person of Indian origin above 18 years of age is eligible to receive property title via the transfer of property.
Q: What is the process of property-title transfer?
A: There are four ways for property ownership transfer. Namely, the sale deed, transfer deed, relinquish deed, and gift deed.
Q: Does the process include monetary transactions?
A: Such a transaction is included under the Sale Deed. However, you are required to check all the way to process the title transfer.
