The activities to be undertaken by the purchaser of immovable property can be broadly classified into: Pre-registration and
Post-registration activities.
Pre-registration requirements: Pre-registration activities
involve identifying the location of the property, ascertaining the valid and marketable title of the
Vendor, Legal scrutiny report, Mode of payment, Sale Agreement, etc. Before
registration of the sale deed, it is very important to verify all the relevant
documents in original, in order to rule out subsistence of any kind of bank
mortgages or encumbrances.
As the purchase of a property involves investment running into lakhs of rupees,
availing the services of an Advocate having sufficient experience in property transactions would immensely help the intending purchaser
in protecting his right, title and interest in the property.
Post-registration requirements: Post registration activities are
the steps to be undertaken by the purchaser after registration of the sale
deed. There are certain requirements to be fulfilled in order to get valid
title and to exercise ownership over the immovable property by the Purchaser.
To obtain Original Documents: The
first and foremost activity to be performed by the purchaser is to obtain
original documents of title from the seller and compare them with the Xerox
copies, which the purchaser’s advocate would have scrutinized. If the advocate
calls for other original documents or certified copies, ensure production of
the same. It is always advisable to apply for certified copies of the sale
deed.
Encumbrance Certificates: It is also necessary to
register the application for updated encumbrance certificate in the
Sub-Registrar office on the day of registration itself, which shall be from the
date of entering into an agreement to the date of execution of sale deed.
Possession of property: Physical Possession of
the property is of vital importance. It is advisable to inspect the property a
day ahead of registration to make sure that the property is as per the sale
agreement. One of the clauses to be incorporated in the sale agreement is that
the Vendor shall hand over vacant possession of the property and the
purchaser shall receive all the keys of the property at the time of
registration. If need be, one may change the main door lock itself.
In case of vacant sites, it is necessary to put up a
display board with the wordings “This property is owned by………….. Trespassers
will be prosecuted”. Fencing of sites or putting up compound walls, though
expensive, is preferable. Periodical visits to the site are a must to detect
any kind of encroachment.
Transfer of Khatha and Khatha
Extract of the property: After registration of the sale deed, the purchaser
must ensure that the Khatha in the records of the local bodies like Gram
Panchayath, CMC or the City Corporation is transferred in his name. For such
transfer, it is necessary that both the buyer and the seller have to sign the
application for transfer of Khatha, which is done simultaneously while signing
the sale deed. This is necessary to avoid unnecessary disputes and
complications in future.
Duly filled Khatha transfer applications have to be
presented before the concerned office, along with a copy of the sale deed and
receive necessary acknowledgement.
At the time of execution of sale deed, the Vendor has to sign the following documents:
At the time of execution of sale deed, the Vendor has to sign the following documents:
- Khatha transfer application,
- Letter for transfer in favour of
the purchaser of Statutory deposits for electricity meter,
- Letter for transfer in favour of
the purchaser of Statutory deposits for water, sanitary connection,
- In case of second hand sale of apartment, letter for transfer of Apartment Membership and Corpus fund has to be obtained by the purchaser from the seller.
The following is the
procedure involved for transfer of Khatha:
- To present an application in the
prescribed form in the office of the City/Town Municipality or Corporation
having jurisdiction along with the supporting affidavit giving all
particulars required in the application. In the affidavit, it is necessary
to declare that you are the present owner.
- To enclose certified copy of the
sale deed with the latest tax paid receipt of the property.
- To furnish Khatha Certificate in
the name of your Vendor.
- The sketch showing the locality giving particulars of the ward or zone, name of the street, etc and deposit the fee fixed.
Local bodies transfer Khatha in the name of the
Purchaser after collecting a transfer fee, which is generally 2% of stamp duty
paid on the sale deed and issue written confirmation of transfer in the name of
the purchaser. While transferring the Khatha, local bodies, re-assess the
property and issue assessment notice in the name of the Purchaser. Further, tax
paid receipt should be in the name of the new owner.
For the properties coming within the jurisdiction of BMP, Computerized
Khatha Certificate and Khatha Extract will be issued. Khatha Certificate is an
authenticated document to prove the ownership and possession of a particular
person over the immovable property. While Khatha Extract reflects the actual
sital area and built up area, if the building is existing. Further, property
tax required to be paid will also be reflected in the Khatha Extract, which
will be arrived at after reassessment.
Building License and Plan: If you are intending to
make material alterations or proposing to construct a new building on the
property acquired by you, it is necessary for you to get the license and plan
approved the local bodies within whose jurisdiction your property falls. This
can be obtained only after depositing the prescribed fees. In order to get the
License with approved plan from the authorities, the Khatha of the property
must stand in your name in the revenue records of the concerned local body and
up-to-date taxes ought to have been paid. The normal procedure for securing
License with approved building plan is to obtain 10 sets of blue prints of
plans from licensed architect/building engineer.
Construction has to be commenced after the license is
obtained and should be completed within 2 years from the date of obtaining the
license and approved plan, which will be stipulated in the Plan itself.
However, you can get an extension if the construction could not be completed
within the stipulated period. Once the construction of the new building is
finished, you must get such a house/building assessed afresh and pay taxes as
determined by the concerned revenue authorities.
Power connection: After Khatha is transferred in the name of the present owner, the
present owner has to ensure as to whether the statutory payments/deposits in
respect of the property including the electricity charges are paid within the
stipulated time. If fresh or new electricity connection is to be obtained, it
is essential to enlist the services of the Licensed Contractor. The amount of
deposit to be made depends upon the requisitioned load or number of kilowatts
required. In case the property is already serviced with electricity, an
application has to be presented by the Purchaser in the prescribed form before
BESCOM or other competent authorities having jurisdiction, enclosing an
affidavit declaring that you are the present owner and by filling up the
particulars required in the application along with the consent letter of the
previous owner for such transfer. Subsequently, the electricity meter will be
transferred in the name of the Present Owner.
Water and Sewage connection: The purchaser should also verify the statutory payments/deposits
made by the previous owner and collect such deposit receipts from the seller.
For fresh connections, it is desirable to enlist the services of a qualified
plumber. In case your property already has water connections, then same
procedure as required for change of power connection has to be followed.
However, the documents are to be presented before the concerned authority.
Corpus Fund and Club Membership: If the purchaser is
intending to purchase an apartment, it is also necessary that the vendor has to
issue a letter for transfer of corpus fund and club membership in the name of
the purchaser.
Bank Loan: In case the purchaser wants to avail bank loan then the purchaser is required to deposit all the relevant title documents in original with the Bank and obtain endorsement to that effect from the concerned Bank. However, it is advisable to keep xerox copies of such documents intended to the deposited in the Bank for personal records.
Thus, mere execution of the sale deed does not
automatically confer the title in favor of the purchaser. A person can enjoy
legal and peaceful possession and enjoyment of the property only after the
post-registration activities are completed.
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