When you have all the rights to a property, you own that property – this is called ownership.
In multiple scenarios, the owner of the property would want to transfer the property to someone else. For instance:
In the case of an illness
In the case of wanting to sell New/old property
In the case where the owner is retiring
Whatever the case, there are legal procedures in place that are required to be completed for the process of transferring a property from the old to the new owner.
MOU
The first step to this entire process should always start by signing the Memorandum of Understanding. This MOU is essentially a document that includes all the information about the buyer and seller, dates, amount of sale, and the period before which the total amount needs to be paid.
Deeds
After this first important step, a deed needs to be prepared. This is a legal document that makes the property enforceable by the law and gives a clear title to the property. With this deed, the property is transferred from buyer to seller or family to family. This legal document also protects against scams and frauds that could take place.
Types of Deeds
Sale Deed – This deed is made at the time of a property transfer through sale or purchase. It should mention that the property is not bound by issues such as legal disputes. Additionally, in case a loan exists, it needs to be cleared by the seller before a transfer
Assignment Deed – Also known as transfer deed, where the owner other than transferring property rights also transfers the benefits that come with it. Such a deed is signed in the presence of two witnesses.
Gift Deed – This happens non-monetarily i.e without any exchange of money- such as in the case of a gift or from one relative to another. It is important to remember that once this deed is complete and the property is transferred, it cannot be reversed.
Relinquishment Deed – This deed is signed by an owner who has made a decision to give up his share of the property and transfer it completely to the co-owner. This deed too cannot be reversed.
Expert Consultation
The entire process of transferring ownership of a property might prove to be quite strenuous and time taking. Moreover, nobody wants to risk drafting the wrong documents. We, therefore, advise taking expert consultation from agents and lawyers who are equipped with sufficient knowledge to make this process less cumbersome and more seamless.
These experts would also explain tax implications, expenses, and stamp duty charges so that you are prepared mentally and financially before getting into the process of property transfer.
As makers of value homes, we understand that buying and selling a home cannot be an easy task. It is a lifetime’s worth of investments, memories, and effort to leave behind while selling and to enter into when purchasing.