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What Legal Steps Are Involved In Buying Or Selling A Property

  • Writer: Mehtab Ali
    Mehtab Ali
  • Dec 3, 2024
  • 4 min read

There Are Many Reasons For Buying A Home; For Most People, It Is An Important Decision And An Investment For A Long Time. Therefore, A House Purchase Process Is Permanent, And Buyers Have To Research All The Pertinent Facts Before Finalizing A House. The Legal Process, Of Course, Is Complicated And Time-Consuming Without Proper Professional Guidance In India. Checking The Legality Of A Home Is Integral In India To Ensure The Home Is Hassle-Free For Residents.


What Legal Steps Are Involved In Buying Or Selling A Property


Laws Related To Real Estate Transactions


  • The Real Estate (Regulation And Development) Act, Or Rera, Is A Major Legislation Aimed At Regulating The Real Estate Sector And Promoting Transparency Accountability, And Efficiency In Conducting Property Transactions. The Core Features Of Rera Include Mandatory Registration Of Real Estate Projects, Display Of Project Information, Strict Adherence To Project Timelines, And Creation Of Escrow Accounts. Rera Aims At The Welfare Of Homebuyers By Setting Up Regulatory Authorities At The State Level To Regulate Real Estate Projects And Ensure That These Projects Comply With Rera.

  • The Transfer Of Property Act Of 1882 Deals With The Transfer Of Property Rights And Provides A Legal Framework For Property Transactions. Under The Registration Act Of 1908, All Property Transactions Must Be Registered To Ensure Their Legality And Legitimacy.


Types Of Property Transfer


There Are Various Types Of Property Transfer. Let Us Discuss These In Detail:


  • The Sale Deed Legally Transfers The Property Ownership From The Seller To The New Buyer After Finalizing The Sale. A Sale Deed Is The Most Common Method For Transferring Ownership Of Property.

  • A Gift Deed Enables A Person To Assign Rights Of Ownership Of A Property To Another Person As A Gift, Without Any Amount. It Is Used For Gifting Houses, Jewels, Shares, Etc. It Is A Valid Contract With No Consideration.

  • In The Transfer Deed, The Transfer Of Ownership Rights Of A Property From One Owner To Another Is Made. Lenders Can Use It To Transfer Their Rights To That Property To Someone Else.

  • In The Relinquishment/Release Deed, If More Than One Person Owns The Property, One Of Them Can Give Up His Rights On That Property With The Relinquishment/Release Deed To Other Co-Owners. Useful When An Owner Dies Without A Will.


What Legal Steps Are Involved In Buying Or Selling A Property


  • It Is Essential To Conduct Proper And Adequate Due Diligence Before Initiating The Transfer Of A Property. You Should Carry Out A Deep Search On All The Title Deeds About The Ownership History And Encumbrances To Ensure A Clear And Marketable Title. Along With This, You Should Also Verify The Land Use Classification, Zoning Regulations, And Permissible Land Use As Per Local Development Plans And Municipal Regulations. It Would Be Wise To Consider Hiring An Attorney Who Could Vet The Respective Documents, Which Would Include The Sale Deed, Title Deed, Encumbrance Certificate, Building Approvals, And Property Tax Receipts.

  • Once The Title Verification Is Done, The Buyer And The Seller Enter Into A Sale Agreement. The Sale Agreement Is That Document Which Is Produced Just Before Signing The Sale Deed And It Has To Be On Non-Judicial Stamp Paper. This Sale Agreement Provides The Terms And Conditions Of The Sale, Including The Sale Consideration, Payment Schedule, Possession Date, Among Other Clauses Pertinent In This Transaction. A Lawyer Should Be Hired To Examine The Sale Agreement To Ensure His Or Her Interests Are Protected By The Agreed Terms And Conditions.

  • The Execution Of The Sale Deed After The Agreement To Sell Is The Next Step. A Sale Deed Is A Legal Document That Transfers Ownership Rights From The Seller To The Buyer And Contains Information Like The Description Of The Property, Sale Consideration, Rights And Obligations Of Both Parties, And Other Necessary Clauses.

  • Stamp Duty Is A State-Specific Tax On The Transfer Of Property. The Buyer Has To Pay The Stamp Duty Depending On Either The Market Value Of The Property Or The Sale, Consideration, Whichever Is Higher. He Will Have To Enroll The Property With The Local Authorities. For Registering The Property, The Buyer Would Need To Submit The Sales Agreement, Title Deed, And Other Relevant Documents To The Local Authorities, And Hence, He Should Keep Them In A Safe And Sound Place.

  • Once The Registration Is Complete And The Buyer Pays The Whole Consideration To The Seller, The Buyer Receives Possession Of The Property. A Joint Inspection May Be Conducted To Ensure That The Property Is Delivered In The Agreed Condition. The Date Of Possession Is Mentioned In The Sale Agreement, And The Seller Has To Hand Over The Property To The Buyer On Or Before The Date Of Possession

  • After Taking Possession, The Buyer Should Initiate The Mutation Process. Mutation Is The Updating Of Property Records With The Name Of The Buyer As The New Owner. This Process Is Normally Conducted At The Local Municipal Corporation Or Panchayat Office.


For Any Legal Help, Contact Lead India. We Offer Free Online Legal Consultations And Other Legal Services. On Our Platform, You Can Talk To Experienced Lawyers. You Can Freely Ask Any Legal Question. We Also Provide The Solutions To All Your Legal Problems.

 

Source:-

Visit Us: — www.leadindia.law

Call Us: +91–8800788535

 
 
 

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