FAQs on Property Laws
Q: What elements need to be included in the agreement for the sale of a residential apartment?
The following particulars should be included in such an agreement:
Every agreement for the sale of a flat should contain these minimum particulars. Such agreement should be accompanied with the true copy of the
In case originals of the title deeds are misplaced by the owner of a property, how should the purchaser protect himself?
This is fairly common. If the originals are found to be lost or misplaced or destroyed, the owners should be called upon to give a suitable indemnity against any loss or damage that the buyer may suffer in the event of any third party making a wrong claim to the property. There is also another reason for caution:
A seller, sometimes, cannot produce the original title deeds because he has deposited these with a bank or financial institution to create a mortgage on the property. This is known as a mortgage by deposit of title deeds. It does not require a registered deed, like other forms of mortgage, and is a preferred means of creating a security, for this very reason. A property, which is mortgaged, continues to carry the burden of the mortgage even after it is sold until the mortgage is redeemed. So check on this before signing up for the property.
Q: What can the seller do when the purchaser of his property does not make full payment?
The buyer can sue the seller for the unpaid amount. But make provision for the right to repudiate the sale in case of non-payment in the sale deed to prevent any such intent on the purchaser's part. Without this provision, the seller cannot retain possession of the property on the grounds that full payment has not been made.
Q: What should be incorporated in a lease agreement?
Yes. On such transfer, unless there is a contract to the contrary, the transferee, i.e. the buyer is entitled to all the rights that the transferor, i.e. the lessor had. However, the lessor is not relieved of his liabilities to the lessee, without the lessee's consent.
Q: Can a person other than the parties to the document present a document for registration? In case a document is presented by a person, who is not empowered to do so, does the registration of the document become invalid?
This right rests only with the Power of Attorney representing the concerned parties; otherwise the registration of the document becomes invalid, as per the Registration Act.
However, when a person who executes such a document, realizes
that such registration is invalid, he can apply to the registrar
or the sub-registrar within four months from the date that he
is aware that the registration is invalid. Subsequently, he can
apply for the re-registration of the document.
The registration of a document serves as a notice of the transaction, to the persons affected by the transaction. Registration also serves as an implied notice to any person subsequently acquiring interest in the property, covered by the registered document.
The real purpose of registration is to ensure that every person dealing with property for which compulsory registration is required, can confidently rely on the statement contained in the register, as being a full and complete account of all transactions by which the title may be affected. Registration is not proof of execution.
When the execution of a document is directly in dispute between
two parties, the fact that the document is registered is not sufficient
to prove its genuineness. Registration does not automatically
dispense with the necessity of independent proof that the document
was executed. A certificate of Registration is mere evidence that
a document has been registered. It is not proof that it has been
Stamp Duty is not payable on the following:
The British Government introduced Stamp Duty in India by enacting the Indian Stamp Act, 1899. After the commencement of the Constitution of India, the power to levy Stamp Duty is vested in the following manner:
As an effect of this, the rates of Stamp Duty, in respect of
the instruments, specified in entry 91 of the Union List i.e.
bills of exchange, promissory notes, bills of lading, letters
of credit, policies of insurance, transfer of shares, debentures,
proxies and receipts, are determined by the Union Government.
On the other hand, the State Government is entitled to levy Stamp
Duty with respect to other instruments. Thus, every State has
its own Stamp Act. E.g. as far as the state of Maharashtra is
concerned, the transactions, related to Stamp Duty, are governed
by the Bombay Stamp Act, 1958
On the expiry of the notice to terminate the lease or, to quit or, of information to quit duly given by either party to the other.