Methods for Transferring Real Estate from Bhatia's blog
Real estate can be transferred by executing a deed. The sellers must sign a deed, which is a legal document that details the property being sold.The seller should locate a blank deed form and obtain the legal description of the property before starting the transfer of real estate. Although you often don't need a lawyer to transfer real estate property, if you have any questions you should get in touch with a knowledgeable real estate dealer.The sale deed, gift deed, and relinquishment deed are your three legal options if you're trying to transfer immovable property. However, since each of these instruments has a defined function, you can't choose one at random.
Sale deed It is the method that is most frequently employed when we sell our property in exchange for money. A sale deed often referred to as a transfer deed, must be recorded at the sub-office registrar's before the property is transferred to the new owner. It's not necessary for the buyer to be related to you.
Advantages: It is a simple and secure method for transferring property. A recorded sale deed serves as evidence that you have actually sold your property. Due to the public availability of the transaction information, it will aid in the prevention of fraud and forgery. Limitations: There are both long-term and short-term capital gains from selling real estate.
Gift deed You can give away both movable and immovable property using this deed without having to exchange it for cash.All you need to do to give away any immovable property is prepare a deed on stamp paper, have it witnessed by two people, and register it with the registrar's office.According to Section 17 of the Registration Act of 1908, any transfer of an immovable property must be registered in order to be lawful.However, it's not necessary to register to give away movable items like jewellery or a car.The beneficiary is the legal owner once the gift deed has been transferred, and it is irrevocable.
Advantages: Giving a relative a piece of property has no tax liabilities. A relative in this context includes your spouse, your brother, your spouse's siblings, your parents' siblings, etc. In addition to this, if a person receives property and the stamp duty value of that property exceeds Rs 50,000, they will be subject to taxation. Limitations: Limitations: A gift deed cannot be withdrawn, but it can be contested in court on the grounds that it was obtained by coercion or fraud.
Relinquishment deed The best option if you want to give up your ownership interests in a property as a co-owner is to use a relinquishment deed. The transfer is final, even if there is no exchange of money, much like a gift deed. It must be recorded and witnessed by two people. Regarding stamp duty, there are no discounts or tax benefits for relatives. Advantages: If a property is owned by two or more people, a relinquishment document enables a smooth transfer. It is frequently employed when a person passes away without leaving a will and the property is eventually inherited by the legal heirs.
Limitations: Relinquishment is treated as a "transfer" under tax law, not as a gift. Therefore, there are no tax benefits.
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