Less Jeopardy in Property Transactions

Less Jeopardy in Property Transactions

By siliconindia   |   Thursday, January 5, 2012

Bangalore: It’s a dream for people to own a property. In India, the real estate laws are complicated and hits people when they plan to involve in the activity of buying and selling of a property. Many a times, it is hard to find an ideal property that people want to buy and also face lot of hurdles while property transactions. So, to protect the transactions here are some points to follow.

Agreement to sell (ATS)

An agreement to sell (ATS) is one of the most noteworthy documents in the process of selling or buying property. The document includes all the terms and conditions under which the transferor is aiming to vend the property and the transferee is intending to buy the property. It is necessary to register the agreement on a stamp paper that starts from rs100. By this, the process became easy to deal without any dispute.

The agreement provides all the details on how the transferor got the property, the selling price of the property, and transferor gives assurance to the transferee about the property clearance and also the insurance clauses. A sale deed is carried out by both the transferor and the transferee and should be registered in the registrar office.

The other details that includes are the age of the party, their permanent address, date and place of execution of the agreement, parties’ capability to enter into an agreement, liability and rights; property’s exact location and the descriptions. On a whole, this agreement is to safeguard the interests of both the buyers and the sellers.

Due diligence

Due diligence is the investigation and the verification of the property before entering into an agreement with another party. To be at safer side, the parties should do due diligence of the property on their own than to appoint a lawyer, except for the pricey property. It is a method to avoid unnecessary damage to both the party involved in transactions.

Stamp Duty

Stamp duty is a type of tax that is levied on documents collected by the government. To buy a property the purchaser has to pay stamp duty on market value. It is to be paid on instruments and the rate varies from state to state. The tax must be paid on time and if it delays then the party has to bear. Before presenting any document in the court, the document has to be on the stamp paper then only it will considered as valid an can be used as an evident.

Sale Deed

Sale deed is an important legal document to execute by both the transferee and the transferor that is controlled by the Registration Act. Sale deed includes all the basic details required for the process of buying and sailing of a property. The deed has to be signed by both the parties at the office of the Registrar of Assurances. The process of purchase and sell will not complete unless sale deed is signed by the transferee and the transferor. Generally the deed is signed after both the parties agreed to the terms and conditions mentioned in the agreement.

Power of Attorney (POA)

Power of Attorney (POA) is a legal document that should be authenticated by the registrar. As per law, the POA has to be framed accurately using legal jargon. If the party wants to empower someone on their behalf then it must be signed and notarized by an expert notary advocate.

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