Written by When a person owns a property and he has a right over it, it is called as Ownership. The owner of a property has the right of possession, right to transfer it and also the right to earn rent from his property.
The owner of a property can transfer his property by selling it. He also has the right to gift his property. A sale deed is a document that proves that a person is the owner of the particular property. A transfer of property ownership will be valid only after executing the sale deed and registering it in favor of the buyer.
In order to transfer a title from one person to another, a conveyance deed is executed. An owner can’t transfer his property if there is any legal restriction barring such transfer. If the owner has given the Power Of Attorney(POA) to a person, that person has the right to sell the property under this authority. A Power Of Attorney gives a person the power to act on behalf of the owner of the property. But the person cannot sell the property, if the POA only gives the authority to manage the property to the person.
The sale deed is totally based on the agreement to sell. The sale deed has a legal value and it can be produced as an evidence. The sale deed is signed and executed by both the seller and the purchaser on a non-judicial stamp paper. All the documents that indicate the transfer of a property must be registered. The sale deed must be stamped and registered at the sub-registrar’s office. If the sale deed is not registered, then the transfer of title in real estate is not valid. Registration Process is done after the payment of stamp duty. Registration is done in order to prevent fraud and to provide security.
Once a buyer purchases a property, the property should be mutated in his name. The new owner must apply for mutation to the local municipal authorities. In order to record the mutation of a property, all the registered documents must be presented as an evidence of transfer of property. Mutation of property is mainly for the purpose of property tax payment.
