5 ways to transfer property in India!
Alienation means the transfer of property, such as mortgages, gifts and sales. If you have acquired a property in India by way of inheritance, gift, purchase, and relinquishment, etc., then you must check that all mutations and revenue records are done in your favour at the earliest.
Mostly, overseas citizens have no trusted representatives for transfer of property in India. Factors like time constraint, inability to travel; lack of information and rising real estate prices in India attracts complications like unlawful possession of land, illegal land transfer or even illegal sale of land by third parties.
To stem these growing frauds against NRI properties, an individual must efficiently transfer his property at the earliest in his name after following the proper process of law.
Modes of Transfer of Property in India
Property ownership can be transferred in two ways:
• Voluntary Transfer
• Involuntary Transfer
At the point when the owner of property transfers it willingly, it is voluntary transfer. It might be done in following ways:
(i) for consideration e.g. by mortgage, sale, lease or exchange,
(ii) by gift, and
(iii) by will
Involuntary transfer OR Involuntary Alienation happens when the court attaches the property of a person. This mode may likewise alienate the assets of the joint family or undivided interest of a co-partner in such estate.
Five ways of transfer of Immovable assets (or) Real Estate Assets
Real Estate Sector is one of the most sought-after investment alternatives in India. You can obtain immovable property in various perspectives, and there can be various circumstances when you wish to transfer your ownership of property to your beloved ones.
The most used method of transferring or acquiring a property is through the execution of SALE DEED, which is also called TRANSFER DEED. But, it may not be a tax-efficient or cost-effective mode.
There can be a circumstance when you want to give up your share in the estate to your sister or daughter. In such cases, property transferring through a Gift Deed can be a best suitable Option.
Another situation can be, if you would like to guarantee that your equity is given to your beneficiaries according to your choices, execution of WILL can be considered.
5 Different ways of acquiring or transferring Real Estate Assets
1. Through inheritance or WILL
2. Through relinquishment of the property in a land
3. Through SETTLEMENT Or Partition of Properties
4. Through GIFTS
5. By purchasing the ownership of the property
1. Sale Deed
This is the most popular method of property transfer in India. If you hold a possession and you might want to sell it outright for a consideration i.e. sale value, then execution of SALE DEED can be considered.
The enrollment of sale deed or transfer deed is mandatory, and once the sale deed is enlisted in Sub-Registrar office, the ownership gets transferred to the new owner.
2. Gift Deed
A gift is a money or house, shares, jewellery, etc. that is received without thought, or merely an asset acquired without making a payment against it and is a capital asset for the ‘Recipient.’ It can be as cash or movable property or immovable property.
If you might want to gift the property to any of your blood relatives, Gift deed can be used. In the case of immovable property, it is required to register the Gift Deed as per Section 17 of the Registration Act, 1908.
This kind of transfer is unavoidable. When you gift the assets like land, it belongs to the beneficiary or receiver of the gift and you cannot switch the transfer or even ask money related compensation.
It can be a cost effective method of transferring the ownership.
3. Relinquishment Deed or Release Deed
If there are multiple owners of assets, and if one of the co-owner needs to transfer his/her rights in the property to another co-owner then this can be possibly done through the execution of RELINQUISHMENT DEED.
The property transfer through Relinquishment deed can be for consideration or without consideration i.e. without any exchange of money. Like gift deed, this transfer is also unavoidable.
4. Partition Deed or Settlement Deed
Partition Deed is executed by the co-owners of the land when a court order or order of a local revenue authority has to be implemented.
In the case of Settlement Deed, however, the property is owned by a third person and is settled for individuals who do not have any past interest in the said property and the share of the heir is as per the desires of the settler.
Unlike WILL, Settlement is a non-testamentary report which becomes operative immediately. Will is a testamentary file, which becomes operative after the expiration of its owner. Also, WILL is revocable and can be modified by the testator, whereas Settlement deed is unalterable.
5. Inheritance or WILL Deed
You can gain a land through inheritance or WILL DEED. In case a person dies then the properties are transferred according to the Law of Succession. Inheritance or WILL Deed can be revocable by the Testator during his/her lifetime. In this way, the beneficiaries of WILL get the possession rights in a land only after the death of the Testator.
After the death of the testator, individual claiming through the WILL DEED or inheritance need not enroll the land in his name.
However, he or she needs to apply to the concerned nearby civil authorities with the copy of the will, Succession Certificate and death certificate for completing property transfer process done in his or her name.
After the expiration of the owner of a land his successors, such as wife, children i.e. male and female, married or single may, as indicated by individual law, get the Patta or Khata transferred on the generation of the death certificate of the owner with details of property transfer held by him.