TRANSFERING YOUR PROPERTY TO A FAMILY MEMBER & ITS PROCEDURE

By Adv. Jaikush Hoon

Owning a property is a matter of pride and achievement as it signifies the hard work that you have put in to acquire it.  When you decide to transfer your property to a loved one, then the process involved is relatively smooth, provided your information, paperwork and documentation is in order.

But first, let us understand what is meant by transfer of property. Property can be classified as an immovable and movable asset. The Transfer of Property Act 1882 is an Indian legislation which regulates the transfer of property in India. It contains specific provisions regarding what constitutes a transfer and the conditions attached to it. It came into force on 1 July, 1882. It defines 'transfer of property' as an act by which a person conveys the property to one or more persons, or himself and one or more other persons. The act of transfer may be done in the present or for the future. The person may include an individual, company or association or body of individuals, and any kind of property may be transferred, including the transfer of immovable property. (Reference: Wikipedia Transfer of Property Act 1882)

In a scenario where  property prices have skyrocketed and fallen and there is danger in real estate investment, its natural to feel concerned about the process of transfer of property deed. To begin with, your inability to travel for varied reasons, patchy information, illegal steps and other unforeseen constraints may hamper things for you. If you are a non resident Indian, then you may be justified in having reservation about the whole process and what it entails. There is also the added concern that your property may be transferred to a third party via illegal means. In some cases people have been duped by close relatives in property matters. How would you prevent that?

Lawclik has the answers to these situations in our information about the process of transferring property deed. Property ownership can be transferred in two ways: voluntary and involuntary transfer.

As the term suggests, involuntary transfer of property is when an asset is transferred to another person without seeking his/her consent. For instance….

There are three categories under which voluntary property transfer is classified. These are:

  1. Transfer of Property by Inheritence/Will deed:  As suggested by this sub-head, this is done when the owner of a property dies and leaves a ‘will deed’ for his successor. But as per law, the inheritor has to inform the local authorities about his inheritance by furnishing death and succession certificate for completing the process of property transfer in his name.
  2. Transfer of Property via Gift Deed: Since a gift is an acquired asset and an immovable property, it is mandatory to be registered under Section 17 of the Registration Act, 1908. A gift deed is valid only when it is given without any monetary element.
  3. Transfer of Property through Sale Deed: As one of the most commonly used methods in India, this requires registration at the office of the Sub- Registrar. A Sale deed comes into play when one person sells a property to another.
  4. Transfer of Property via Release Deed: In case a property is jointly owned by two or more owners, and one of them wants to transfer his rights to another one, then it is made possible via a release deed.
  5. Transfer of Property Deed of Settlement/ Partition:   A settlement deed comes into play when the property is owned by a third person and he settles it favor of those persons who don’t have any previous interest in the property and the share of the beneficiary is as per the wishes of the settler. In case of partition deed, its executed in a jointly owned property to implement a court’s order.

What you must know about all property deeds is that except for Gift deeds, all others are subject to taxation, stamp duty and registration costs.

Logon to www.lawclik.com & take a 30 days free trial with services worth INR 30000. Take a free Drafting & Consultation services & get a Will/Inheritence Deed drafted under the trial for free.