Buying a house is a time-consuming process where homebuyers usually indulge in options before finalising a property and investing the lifelong savings in buying a house.
However, the process does not end there. The harder work starts with post-purchase paperwork which in other words is termed as property transfer, is needed to complete. There is countless legal paperwork which further makes it an extremely lengthy process. One of the significant categories of legal documents is the property tax record. It has been observed that the Indian homebuyers are unaware of changing the records in the property records when ownership changes hands. The municipal authorities are responsible for keeping the tax record. However, if the change of ownership does not take place, tax receipts are generated on behalf of the previous owner.
There are two important aspects of the property transfer process. The first one is changing the name in Property Tax document where you will need to submit a few documents to the Commissioner of Revenue after which the verification will take place in 25 to 30 days. Attested copy of the sales transaction deed, receipt of the tax last paid, properly filled application form with signatures, and no objection certificate (NOC) from the associated housing society are the documents required from your end.
Another aspect is the mutation of property. Generally termed as Dakhil Kharji, the mutation of property process helps in transferring the title ownership from the property owner to the buyer after purchasing the property. It helps the government to levy taxes on the new owner of the property. You are required to submit an application to the Tehsildar with a non-judicial stamp on it. The most important document is the no objection certificate for the purchase case and an affidavit for the inherited case.
Know the steps involved in the transfer of property:
• Knowing the valuation or the market price of the asset before handing it over to another person is important. Doing this gives a bright idea about the variations of the CGT event (Capital Gains Tax event).
• Hire a property management lawyer when you gift or sell your possession. A lawyer is helpful in filing the quitclaim deed correctly, and you can avoid getting confused and save time.
• Also identified as the Grant Deed, it is important to get a warranty deed to transfer the ownership in India to different person’s name. This transfers possession of the property and guarantees handing over of the assets of the owner to the transferee.
• The accurate and legal description of your ownership such as an address, landmark, few specifications, and dimensions at the time of transfer is very important.
• The benefit of exclusions is both the receiving and the giving parties are spared from being taxed while transferring the assets and this exemption can be applied in the case of a parent, child, etc.
• In India, the property transfer can be done either as a gift or as per the will. The property transfer through a gift deed will need a stamp duty whose value and design rate is fixed by the government. For a will deed, the stamp duty is mentioned, and the will can be enforced only after the death of the person. It also has to be registered with the help of a lawyer. There is an alternative of the Will being either listed or not listed. A person will not be excused from paying the debts in case he/she is handing over the asset to escape the liabilities.