Essentials to Know About the Property Transfer

Buying a property is not the easiest task as it seems so; you need to check out the location, services, and many other things while purchasing any property from a real estate company such as Parx Laureate. So we are here with some recommendation points that can help you to purchase the right property at a fair price. Have a quick look...

1. Sales Deed

Transferring residential property through an agreement on sales deed does not provide to all situations. Just suppose, you want to present the property to a family member without seeking any financial reimbursement, then gift deed is the right instrument. The legal document should be approved by 2 witnesses for being registered in the office of sub-registrar of assurances. According to 1908’s Registration Act assets under Section 17 the irrevocability of such transfer, once the gift deed is executed, the same cannot be reversed in the future, and you can’t claim any financial benefit against the property.

You can get a ‘Will Deed’ ready to allow possession of the property by your family member after your demise. With no deed, the property is transferred to another beneficiary as per the clauses of ‘Law of Succession’. After the death of the testator, the successor has to apply to local civil authority with a copy of will deed, testator’s death and succession certificate to get the property transferred in one’s name. If you are eager to transfer your property ownership rights to co-owner irrevocably, both of you are required to sign and register the ‘Relinquishment Deed’. No exemption on stamp duty can be claimed although no money exchanges hands.

2. Execute Property Transfers

As house deed transfer involves multifaceted paperwork, you can’t take the risk of getting documents drafted without conferring with a discerning lawyer. Different types of deed have their own advantages and limitations; the ramifications of which may be experienced by the new owner in the long run. Further, if a family member has compelled you to present the property from Parx Laureate, your lawyer can help you raise the matter in the course for seeking a reversal. Prospects of your present being challenged by other relatives are high. As such, your notary can help in framing a strong draft that would minimize challenges in the future.

3. Tax Implications

Gifting a property to certain relatives does not attract transaction taxes. On the other hand, stamp duty has to be certainly paid when you transfer ownership of the house to a relative. The duty ranges from 1 to 8 percent depending upon the state where the property is located. The duty of stamp varies from 5-11% if the property is gifted to a non-relative. While relinquishing your property, if the financial compensation sought by you is lesser than the property’s current market value in the area, then the difference would be taxed by the buyer. On the other hand, if the property is relinquished without any exchange of money, its stamp duty would be equivalent to sale valuation as per existing rates in the area.