Transfer of a property requires property document. Both parties need to follow the property transfer procedure. Transfer of property can take place for reasons like gifting, selling a property, or sometimes it could be due to the illness of the current owner.
Here is everything you need to know about property transfer.
1. Memorandum of Understand: It is also known as MOU. The MOU is one of the first documents that is required during the property transfer process. This document has all the details about sales and purchase of the property, such as detail information about buyers and sellers, date of purchase, date of legal transfer applied and when the buyer will pay the full amount.
2. Sale Deed: The MOU is covered under the sale deed. Apart from all the information from the MOU, this is the most legal document which is required under registration act. This document states that the property is free from any kind of legal disputes and encumbrances. The document also has bank details and stamp duty. If there is an outstanding loan on the property, then the current owner needs to settle it first and then sell the property.
3. Transfer Deed: It is used for transferring the existing title to someone else. It states the ownership of the property and all the other benefits that are transferred to the new person.
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4. Relinquishment Deed: This type of deed is only required when the property is owned by more than one person and this deed is to relinquish all the shares in that property to another partner. Tax and stamp duty can vary as per the shares of the person who has transferred it. If the person owns 10 percent share in the property, then taxation will be just for the 10 percent. Also, this deed cannot be altered even if there is no monetary transition.
5. Gift Deed: This type of deed is required to certify that the ownership of the property has been shifted to the new party without any exchange of money. This deed is written on a stamp paper, attested by two witnesses, and registered to the sub-registrar office. Once the process is completed it cannot be reversed.
These are all the documents required while transferring your property. However, documents are required based on the kind of transaction. Make sure you follow all the legal protocols to avoid any kind of legal dispute in the future.