Documentation

This section gives your an overview of the paperwork it takes to purchase an apartment.

Which documents are to be verified before the purchase of a Flat?

Besides technical details pertaining to area, one should verify the building plan approved by Municipal Corporation or such other competent authority, commencement certificate, ownership documents (title documents) etc. If it is a resale flat then verification of further documents such as Share certificate, rent receipts, Maintenance receipts etc. becomes necessary. Verification of Occupancy certificate is also imperative wherever applicable. However, this is a professional job and services of a competent advocate shall be used for the same.

What is Encumbrance Certificate?

All transactions that are in the nature of conveyance or transfer of immovable property of the value of Rs. 100/- or more have to be effected by a duly stamped and registered document. The entries relating to these transactions are recorded with the Registrar of Assurances concerned. The Encumbrance Certificate is an extract of this book for the period requested.

Who is liable to pay Stamp Duty-the buyer or the seller?

Unless the parties have agreed to the contrary, the liability of paying stamp duty is that of the buyer.

In whose name are the stamps required to be purchased?

The stamps are required to be purchased in the name of any one of the executors to the Instrument.

What is meant by the market value of the property and is Stamp Duty payable on the market value of the property or on consideration as stated in the agreement?

Market value means the price at which a property could be bought in the open market on the date of execution of such instrument. The Stamp Duty is payable on the agreement value of the property or the market value whichever is higher.

What do we mean by a Free Hold Property?

A freehold property (plot or a flat) is one where there are a whole and sole owner(s). Ownership is full and unconditional (within the provisions of the laws of the land) and there is no lessor/lessee involved.

What are the legal formalities in Gifting a Flat?

Gift of an immovable property is considered as a ‘transfer’ under the provisions of the Transfer of Property Act and the transaction has to be registered through a Gift Deed and the stamp duty should be paid as per provisions of the applicable stamp act.

What are the duties of the seller in a sale of an immovable property?

The seller should disclose all material defects in the property which is the subject of sale, to the buyer. He also must produce the title deeds of the property. Upon completion of Sale, he has to give the possession of the property and also deliver the title deeds on receipt of the price.

What are the duties of the buyer in a sale of an immovable property?

The buyer is to pay the purchase-money to the seller.

What is the purpose of Registration? What are the effects of non-registration?

By Registration of transaction of immovable property will become a permanent public record. This is a notice to the general public. Those getting transfer of property should verify whether such property has been previously encumbered. According to Transfer of Property Act right, title or interest can be acquired only if the deed is registered. If a deed of transfer, which is compulsorily registrable, is not registered, it will not be admissible in evidence.

What is 7/12?

It is a revenue document of ownership, mainly for agricultural land issued by Talathi of the respective villages in which property is located. It contains name of the owner, description of the property i.e survey no & hissa no, area of plot and Mutation entry Nos of any encumbrances by way of loan, charge, and tenure of land. This document is always available in local language. The validity of this document is 6 months from the date of issue.

What is Property Card?

It is also a document of ownership similar to 7/12 extract with all contents mainly applicable for urban areas. This is issued by concerned City Survey officer of respective Zone. It is essential to have the endorsement of the area of the plot in figures as well as in words in this document. The validity of this document is one year from the date of issue.

What is the difference between Lease and Leave and License Agreement?

The lease is a transfer of an interest in the property whereas in the case of L&L, there is no such transfer of an interest in the Property. Leave and license does not create any interest in the premises in favor of the licensee but gives the licensee the mere right to use and occupy the premises for a temporary period. The lease is assignable whereas L&L is generally not assignable. The lease creates heritable right under the transfer of property Act and also under Bombay rent act. Whereas it is not so with L&L.

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