A present deed is a compulsorily registerable doc

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My father constructed a home in Kolkata in 1999, the place me, my spouse and daughter keep. What’s the process for my father to switch the home in my title? What are the authorized points and stamp costs concerned in promoting the property?

—Vedabyas

In case your father needs to switch the home to you throughout his life time, he can accomplish that by means of a present and for this function, since immovable property is being transferred, he must execute a present deed in your favour.

Whereas executing the reward deed, you will need to remember that as per part 122 of the Switch of Property Act, 1882, a present is taken into account to be legitimate solely when it’s made voluntarily; it’s with out consideration; there was a suggestion by the donor; and the provide has been accepted by the donee, and the donee truly accepts the reward. Thus, for the reward to be legitimate, it should be made voluntarily by your father, with none change of cash and it must be accepted by you. The reward deed is to be executed by your father and also you and should be attested by two witnesses.

Stamp responsibility shall be payable thereon as per the provisions of Schedule I-A of the Indian Stamp Act, as relevant in Kolkata. In lots of states, the stamp responsibility payable on a present of immovable property when made by a dad or mum to a toddler is significantly decrease than that on a conveyance or switch of immovable property to an individual apart from specified relations.

Part 17 of the Registration Act, 1908, lays down the paperwork that need to be registered. As per Part 17(1)(a) of the Registration Act, a present deed needs to be compulsorily registered, and costs need to be paid.

In case your father needs to switch the home to you after his life time, he can draw up a Will and bequeath the home to you. That is assuming that the private legal guidelines relevant to your father allow him to bequeath his properties by way of a Will.

Whereas no stamp responsibility is payable on the Will, upon your father’s demise, for the reason that property is in Kolkata, a probate of the Will must be obtained and relevant court docket charges must be paid thereon.

It might be famous that whereas there are not any authorized points in promoting immovable property per se, what any purchaser will wish to verify is whether or not you as the vendor has a superb and marketable title to the property. Due to this fact, all of the title deeds, proper from the primary sale/switch, the deeds pursuant to which your father acquired the land, in addition to all licensed plans, permissions for building of the home, and so forth must be produced. You’ll have to present that every of those paperwork have been duly stamped and registered. In case your father items the home to you, the duly stamped and registered reward deed shall be wanted. For those who inherit it, the probated Will will type part of the title paperwork as nicely.

For sure, as a vendor/vendor, you also needs to have the ability to set up that every one property taxes have been paid, that there are not any pending authorized disputes with respect to the property and that there are not any tax calls for pursuant to which the property could possibly be connected. Please be aware that this isn’t an exhaustive listing however what’s of paramount significance is that there ought to be no defect in your title to the property on the time of sale.

Stamp responsibility shall be payable on the deed by which you promote the property to a vendor on the charges stipulated in Schedule I-A of the Indian Stamp Act, as relevant to the State of Kolkata. As per Part 17(1)(b) of the Registration Act, the conveyance/switch deed is a compulsorily registerable doc and registration costs could be payable thereon.

For advise on the tax implications, please seek the advice of a tax adviser or a chartered accountant.

Queries and views at mintmoney@livemint.com

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