Property Transfer: What are the precautions to be taken while buying a house? Know the different types of property transfer. Things to keep in mind while buying a house Know the different types of property transfer

House (HouseBuying is one of the biggest financial decisions. Property (PropertyIt is necessary to take a very careful decision while buying. At the time of transfer of ownership rights to the property (ownership rights) is also required. There are different types of transfer of property. It includes sale deed, gift deed, will and power of attorney. Let us know how to get ownership right after the transfer of property. A sale deed is a contract of sale which is a common mode of transfer of property. It is also called transfer deed or registry. When one person sells a property to another, a sale deed is entered between the two. All sale deeds have to be registered in the Registrar’s Office. Along with this, normal stamp duty has to be paid. After the sale deed, the ownership of the property is transferred to the new owner.

deed of gift

A gift deed is usually used to transfer property as a gift or donation. Gift deed is not related to money. Only stamp duty has to be paid and ownership is transferred after registration. In Maharashtra, 3% stamp duty has to be paid on gift deed. Any person can bequeath his immovable or movable property to another person by making a will. The person named in the will becomes the owner of the property after the death of the said person. No stamp duty will be payable on the property acquired from the will.

general power of attorney

Sometimes property is bought and sold through General Power of Attorney. Power of attorney is created to manage the property in case of dispute, to collect rent and in certain circumstances to authorize the sale of the property. Many a times people buy property by using wrong power of attorney. But buying property through a power of attorney does not confer a right of ownership. Power of attorney is valid as long as the owner of the property is alive. In 2011, the Supreme Court held that the sale of immovable property through a power of attorney is illegal. Immovable property can be sold only through a registered deed.

Property name required

Once the property is transferred, it is also necessary to put it in your name. When a property is sold, the name of the previous owner must be removed and the name of the other owner must be entered in government records. This does not include leased properties. It is important that the property is in your name at the time of disposal. If the property is not in your name, only the original owner gets compensation. Apart from this, there are also problems in getting loans. Therefore, while buying a property, check all the documents properly. First there should be an agreement to sell. After that registry or sale deed has to be done. Advocate Sachin Sisodia has said that if you are buying a flat or land from any authority, then it is necessary to take the property in your name.