In India, property transfer involves legal procedures to change ownership, recorded in government documents. This process, known as mutation, ensures the transfer of property rights from the seller to the buyer. Here's a detailed overview of the steps involved:
1. Ways to Transfer Property
| Transfer Procedure | Description |
|---|
| Sale Deed | A sale deed is executed between the seller and buyer, and upon registration, ownership is transferred. Capital gains tax may apply. |
| Gift Deed | Property is gifted via a deed, following voluntary legal requirements. No taxes are incurred in this transfer. |
| Relinquishment Deed | For properties with multiple owners, one can transfer their share via a relinquishment deed. Stamp duty applies only to the portion transferred. |
| Partition Deed | Jointly-owned properties can be divided using this deed to define each owner's share clearly. |
| Will | Property can be transferred post-death through a will. No taxes are applicable in such transfers. |
2. Documents Required for Mutation in India
| Required Documents | Details |
|---|
| Application form for mutation with court fee stamp | The buyer fills this form accurately. |
| Copy of sale deed | A copy of the sale deed between the seller and buyer. |
| Indemnity bond on requisite stamp paper | A bond stating the buyer agrees to indemnify the authority against any claims or losses due to mutation. |
| Affidavit on requisite stamp paper | An affidavit ensuring compliance with mutation terms and conditions. |
| Copy of Identification Documents (IDs) such as Aadhaar Card | Buyer's identification documents for verification. |
| Previous property tax receipts | Records of previous property tax payments. |
3. Mutation Process in India
| Mutation Process | Details |
|---|
| Buyer's Responsibility | The buyer initiates the mutation process. |
| Application Submission | Required documents and forms are submitted to the concerned authority. |
| Physical Verification | Authorities conduct a physical check of the property. |
| Objection Period | In rural areas, a proclamation is issued for objections, usually for 15 days. |
| Mutation Approval | If no objections are received, mutation is sanctioned by the authority. |
| Record Update | Municipal bodies update records within 15 to 30 days. |
| Issuance of Certificate | A mutation certificate is issued to the buyer after the record update. |
Caution for Action:
- Buyers: Ensure all required documents are in order and submitted correctly.
- Sellers: Promptly provide necessary documents to buyers for mutation.
- Both Parties: Stay informed about the status of the mutation process and follow up if necessary.
Understanding and adhering to the mutation process is crucial for a legally valid property transfer in India.
Transferring a property simply means handing over the asset in the present or future to one or more persons. This can be due to a serious illness of the existing owner, retirement plans, or the sale of the property. In any case, a legal procedure should be adopted to document the property transfer from an existing owner to a new owner. The process should involve a transfer deed to avoid any disputes between the transferor and the transferee.
Types of Property Transfer Deeds
| Type of Deed | Description |
|---|
| Sale Deed | A sale deed is executed during a sale or purchase of property. It includes important details of the buyer and seller, details of the property, area, construction details (if applicable), and payment terms. It ensures that the property is free from encumbrances and legal disputes. Stamp duty varies between 1% and 8% across different states in India. |
| Transfer Deed | Also known as an assignment deed, it transfers the existing property title to someone else, along with all benefits arising from it. While not mandatory to register, it should be signed in the presence of two witnesses. |
| Relinquishment Deed | This deed is used when the owner willingly transfers their share in the property to a co-owner. Once signed and registered, it becomes irreversible. Stamp duty is levied only on the percentage of the property relinquished. |
| Gift Deed | Documented when the property is transferred without any exchange of money, usually as a gift. The transferor drafts the deed on stamp paper, gets it attested by two witnesses, and registers it at a sub-registrar’s office. Once registered, the transfer is irrevocable, and gift deeds do not attract any tax. |
Stamp Duty on Transfer Deed of Property
| Type of Property | Relatives | Non-relatives |
|---|
| Immovable Property | 1-8% of the property value | 5-11% of the property value |
In conclusion, different types of deeds offer varying levels of protection to the buyer and bind the seller to certain covenants. Therefore, consulting a qualified real estate legal advisor is crucial while making a property transfer.
