title of the property
DESCRIPTION
Verification of the title of the property - the mechanism behind itTRANSCRIPT
TITLE OF THE PROPERTY TITLE OF THE PROPERTY
APURVA AGRAWALAPURVA AGRAWAL
GODREJ & BOYCE MFG CO LTDGODREJ & BOYCE MFG CO LTD
DECEMBER 15, 2007DECEMBER 15, 2007
WHAT IS A CHEQUE?
Section 3 of Transfer of Property Act:
"Immovable Property" does not include
standing timber, growing crops or grass
IMMOVABLE PROPERTY
WHAT IS A CHEQUE?
Section 3(26) of the General Clauses Act
1897
"shall include land, benefits to arise out
of land and things attached to the earth,
or permanently fastened to any thing
attached to the earth"
IMMOVABLE PROPERTY
WHAT IS A CHEQUE?
Section 2(6) of the Registration Act, 1908
"Immovable Property includes land, building,
hereditary allowances, rights to ways, lights,
ferries, fisheries or any other benefit to arise
out of land, and things attached to the earth or
permanently fastened to any thing which is
attached to the earth but not standing timber,
growing crops nor grass".
IMMOVABLE PROPERTY
WHAT IS A CHEQUE?
Defined under Income Tax Act
"Transfer" in relation to property includes: -
sale, exchange or relinquishment of the property; or
extinguishment of any rights therein; or
TRANSFER
WHAT IS A CHEQUE?
U/s 53 A of the Transfer of Property Act i.e. allowing possession of any immovable property to be taken or retained in part performance of the contract; or
By way of becoming a member of a society etc. or any agreement which transfers the immovable property to another person.
TRANSFER
WHAT IS A CHEQUE?
compulsory acquisition of the asset under any law; or
conversion of the capital asset into stock-in-trade of one's own business;
TRANSFER
WHAT IS A CHEQUE?
Sale of propertyExchange of propertyReleaseRelinquishment of propertySurrenderDevelopment Rights (FSI, TDR) Lease of property Mortgage of Property
PROPERTY TRANSACTION
WHAT IS A CHEQUE?
Immovable Property registration is governed by Registration Act of 1908.
Process of recording a copy of a document, transferring the title to immovable property
Acts as proof that the property transaction has taken place
REGISTRATION
WHAT IS A CHEQUE?
Any document creating third party right in respect of an immovable property requires compulsory registration
As per section 17 of the Registration Act, 1908 the following transactions of immovable property are required to be compulsorily registered
DOCUMENTS
WHAT IS A CHEQUE?
Contracts to transfer for consideration, any immovable property for the purpose of section 53A
Gift Deeds
Instruments which create or extinguish any right or title to or in an immovable property of the value of more than Rs.100/
REGISTRATION
WHAT IS A CHEQUE?
Lease Deeds (for year to year or for any term exceeding one year or reserving a yearly rent)
Leave and License - ????
REGISTRATION
Agreement has to be registered with the Sub-registrar of Assurances on whose jurisdiction the property is located
Registration should be completed within
four months from the date of execution of the Agreement
REGISTRATION
WHAT IS A CHEQUE?
If the documents required to be registered, are not registered than in that case the documents shall not
affect any immovable property comprised therein, or
confer any power to adopt, or
EFFECT OF NON
REGISTRATION
WHAT IS A CHEQUE?
be received as evidence of any transaction affecting such property or conferring such power
confer title
EFFECT OF NON
REGISTRATION
WHAT IS A CHEQUE?
The statement contained in the register, as being a full and complete account of all transactions by which the title may be affected
PURPOSE OF REGISTRATION
WHAT IS A CHEQUE?
The records give the fullest security of tenures and minimize the possibility of disputes and litigation
Enable owners to obtain credit more easily and to transact in property more quickly, safely and cheaply
EFFECT OF REGISTRATION
WHAT IS A CHEQUE?
At the same time, the records secure the rights of absentees and also prevent the growth of unwanted and illegal land ownerships
EFFECT OF REGISTRATION
WHAT IS A CHEQUE?
The title of the property should be
clear, marketable and free from
encumbrances
Always use the services of a
competent Advocate for verifying
the title of Property
TITLE
WHAT IS A CHEQUE?
Responsibility of the TRANSFEREE to
investigate the title of the property
Once an understanding has been arrived
the TRANSFEROR sends original
documents to the TRANSFEREE
INVESTIGATION OF TITLE
WHAT IS A CHEQUE?
The Transferee issues a duly signed receipt
known as an “accountable receipt”
Accountable Receipt records that the original
title deeds are received which the Transferee
undertakes to return to the Transferor on
demand without claiming any lien for costs or
otherwise
ACCOUNTABLE RECEIPT
WHAT IS A CHEQUE?
search clerk takes search in the
offices of the sub-registrar to find out all
the documents that are registered
relating to the immovable property
ascertains the Cadestral Survey
Number (CS) and the City Survey Number
(CTS)
SEARCH AT SUB REGISTRAR’S
WHAT IS A CHEQUE?
Practice was to have title search for 60
years, as the mortgagor had 60 years time
to redeem the mortgage under the then
existing limitation laws. However, under
the present limitation laws, the mortgagor
has 30 years from the date the right to
redeem or recover possession accrues.
SEARCH AT SUB REGISTRAR’S
WHAT IS A CHEQUE?
Usually under a deed of mortgage the
time prescribed for redemption is
between 2 to 5 years and therefore the
title is usually traced back to 35 years to
40 years
reveals the devolution of title to the
property
SEARCH AT SUB REGISTRAR’S
WHAT IS A CHEQUE?
The states of Maharashtra and Gujarat
have introduced relevant provisions in
the relevant statutes requiring
registration of notices providing details
of the pendency of any litigation in
respect of the property
LIS PENDENS
WHAT IS A CHEQUE?
Transferee’s advocate issues a public
notice in at least two local newspapers
Notice states that the transferee has
agreed to purchase the property from the
Transferor whose name is given and
invites claims
PUBLIC NOTICE
WHAT IS A CHEQUE?
if no such claim is received, within the
stipulated time it would be deemed that
no such claim exists or waived. Notice is
not binding on the real claimants to the
property. In case of dispute such notice
supports the Transferee’s contention that
he is a bona fide purchase for value
without notice of such claim
PUBLIC NOTICE
WHAT IS A CHEQUE?
The states of Maharashtra and Gujarat
have introduced relevant provisions in
the relevant statutes requiring
registration of notices providing details
of the pendency of any litigation in
respect of the property
LIS PENDENS
WHAT IS A CHEQUE?
Enquire from the Corporation as to
whether there are any claims of the
Corporation on the property for any
taxes, arrears of municipal bills or water
charges or any other cess bills in respect
of the property
STATUTORY CHECKS
WHAT IS A CHEQUE?
Any such arrears as mentioned are a
first charge on the property
If not enquired, the Purchaser remains
liable for all the claims, as the same is a
first charge on the property
STATUTORY CHECKS
WHAT IS A CHEQUE?
Need to ascertain
whether the property or any portion
has been notified under the Land
Acquisition Act for any public purpose;
whether any notice, notification, action
or claim is pending
LAND ACQUISITION
WHAT IS A CHEQUE?
whether the property or any portion
thereof is included in the set-back; and
whether the property or any portion
thereof is reserved for any public
purpose that is, reserved for garden,
school, hospital, development road or
for any other purpose
LAND ACQUISITION
WHAT IS A CHEQUE?
The Hindu Succession Act, 1956 -
governs Hindus, Buddhists, Jains and
Sikhs,
Customary Laws of Muslims govern the
Muslims
FAMILY LAWS
WHAT IS A CHEQUE?
Indian Succession Act, 1925 - govern
the Jews, Indian Christians and Parsis.
However, succession to the property of
any person whose marriage is
solemnized under the Special Marriage
Act, 1954 is regulated by the provisions
of the Indian Succession Act, 1925
FAMILY LAWS
WHAT IS A CHEQUE?
Indian Succession Act, 1925 - govern
the Jews, Indian Christians and Parsis.
However, succession to the property of
any person whose marriage is
solemnized under the Special Marriage
Act, 1954 is regulated by the provisions
of the Indian Succession Act, 1925
FAMILY LAWS
WHAT IS A CHEQUE?
Maharashtra Land Revenue Code, 1966 Maharashtra Agricultural and Tenancy
ActUrban Land (Ceiling and Regulation)
Act, 1976 Bombay Public Trusts Act
PROPERTY LAWS
WHAT IS A CHEQUE?
property cannot be used for any
purpose other than the sanctioned
purpose
prior sanction of the relevant regulatory
authority is required for the change in
user of the property
USAGE
WHAT IS A CHEQUE?
absolutely essential to consider the
restrictions imposed under various
legislations on the sale or transfer of
property or the change of user of the
property under various circumstances
agricultural land, tribal land etc
USAGE
WHAT IS A CHEQUE?
Non Agriculture Permission
If agricultural land needs to be developed for residential/commercial/ industrial use, then such land has to be converted to non-agricultural land
Along with this, one needs to take the latest receipts evidencing the payment of Non Agriculture Tax
USAGE
INSPECTION OF DOCUMENTS
Documents pertaining to land
Conveyance Deed or Sale Deed
This is a deed by which the title of property is conveyed and ascertains whether the property is on the land belonging to the society/ builder/ development authority in which the property is located.
INSPECTION OF DOCUMENTS
Documents pertaining to land
7/12 Extract
This is a document issued by Tehsildar or the concerned land authorities giving details such as the survey numbers, area, date from which current owner is registered as owner
INSPECTION OF DOCUMENTS
Documents pertaining to land
Index II
This is a document issued by the office of the Sub-Registrar of Assurances. It mainly mentions the names of the sellers & purchasers of a property for which the document is registered.
INSPECTION OF DOCUMENTS
Documents pertaining to project / building
Development Agreement
Agreement entered into by the builder with the landowner contains the terms and conditions on which the landowner has permitted development of his property
INSPECTION OF DOCUMENTS
Documents pertaining to project / building
Approved Building Plan
The building plan made by the Developer / Builder needs to be approved by the Municipal Corporation or the concerned authority
INSPECTION OF DOCUMENTS
Documents pertaining to project / building
Intimation of Disapproval “IOD”
IOD is issued to the builder intimating that the proposed plan submitted by the builder is disapproved to the extent of details mentioned in the said IOD
INSPECTION OF DOCUMENTS
Commencement Certificate
This certificate is given by the Municipal Corporation permitting the Builder to begin construction. This is done once the plans have been approved
INSPECTION OF DOCUMENTS
Building Completion Certificate
This Certificate is given to the Builder once the said building is complete
Occupation Certificate
This certificate is given when the building in all respects is fit for occupation
INSPECTION OF DOCUMENTS
Flats
Approved plans/specification Commencement certificate I.O.D. Occupation Certificate Building Completion Certificate Title Certificate Deed of Transfer
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