Title Of The Property

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Verification of the title of the property - the mechanism behind it

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Title Of The Property

  1. 1. TITLE OF THE PROPERTY APURVA AGRAWAL GODREJ & BOYCE MFG CO LTD DECEMBER 15, 2007
  2. 2. WHAT IS A CHEQUE? Section 3 of Transfer of Property Act: "Immovable Property" does not include standing timber, growing crops or grass IMMOVABLE PROPERTY
  3. 3. WHAT IS A CHEQUE? Section 3(26) of the General Clauses Act 1897 "shall include land, benefits to arise out of land and things attached to the earth, or permanently fastened to any thing attached to the earth" IMMOVABLE PROPERTY
  4. 4. WHAT IS A CHEQUE? Section 2(6) of the Registration Act, 1908 "Immovable Property includes land, building, hereditary allowances, rights to ways, lights, ferries, fisheries or any other benefit to arise out of land, and things attached to the earth or permanently fastened to any thing which is attached to the earth but not standing timber, growing crops nor grass". IMMOVABLE PROPERTY
  5. 5. WHAT IS A CHEQUE? <ul><li>Defined under Income Tax Act </li></ul><ul><li>&quot;Transfer&quot; in relation to property includes: - </li></ul><ul><li>sale, exchange or relinquishment of the property; or </li></ul><ul><li>extinguishment of any rights therein; or </li></ul>TRANSFER
  6. 6. WHAT IS A CHEQUE? <ul><li>U/s 53 A of the Transfer of Property Act i.e. allowing possession of any immovable property to be taken or retained in part performance of the contract; or </li></ul><ul><li>By way of becoming a member of a society etc. or any agreement which transfers the immovable property to another person . </li></ul>TRANSFER
  7. 7. WHAT IS A CHEQUE? <ul><li>compulsory acquisition of the asset under any law; or </li></ul><ul><li>conversion of the capital asset into stock-in-trade of one's own business; </li></ul>TRANSFER
  8. 8. WHAT IS A CHEQUE? <ul><li>Sale of property </li></ul><ul><li>Exchange of property </li></ul><ul><li>Release </li></ul><ul><li>Relinquishment of property </li></ul><ul><li>Surrender </li></ul><ul><li>Development Rights (FSI, TDR) </li></ul><ul><li>Lease of property </li></ul><ul><li>Mortgage of Property </li></ul>PROPERTY TRANSACTION
  9. 9. WHAT IS A CHEQUE? <ul><li>Immovable Property registration is governed by Registration Act of 1908. </li></ul><ul><li>Process of recording a copy of a document, transferring the title to immovable property </li></ul><ul><li>Acts as proof that the property transaction has taken place </li></ul>REGISTRATION
  10. 10. WHAT IS A CHEQUE? <ul><li>Any document creating third party right in respect of an immovable property requires compulsory registration </li></ul><ul><li>As per section 17 of the Registration Act, 1908 the following transactions of immovable property are required to be compulsorily registered </li></ul>DOCUMENTS
  11. 11. WHAT IS A CHEQUE? <ul><li>Contracts to transfer for consideration, any immovable property for the purpose of section 53A </li></ul><ul><li>Gift Deeds </li></ul><ul><li>Instruments which create or extinguish any right or title to or in an immovable property of the value of more than Rs.100/ </li></ul>REGISTRATION
  12. 12. WHAT IS A CHEQUE? <ul><li>Lease Deeds (for year to year or for any term exceeding one year or reserving a yearly rent) </li></ul><ul><li>Leave and License - ???? </li></ul>REGISTRATION
  13. 13. <ul><li>Agreement has to be registered with the Sub-registrar of Assurances on whose jurisdiction the property is located </li></ul><ul><li>Registration should be completed within four months from the date of execution of the Agreement </li></ul>REGISTRATION
  14. 14. WHAT IS A CHEQUE? <ul><li>If the documents required to be registered, are not registered than in that case the documents shall not </li></ul><ul><li>affect any immovable property comprised therein, or </li></ul><ul><li>confer any power to adopt, or </li></ul>EFFECT OF NON REGISTRATION
  15. 15. WHAT IS A CHEQUE? <ul><li>be received as evidence of any transaction affecting such property or conferring such power </li></ul><ul><li>confer title </li></ul>EFFECT OF NON REGISTRATION
  16. 16. WHAT IS A CHEQUE? <ul><li>The statement contained in the register, as being a full and complete account of all transactions by which the title may be affected </li></ul>PURPOSE OF REGISTRATION
  17. 17. WHAT IS A CHEQUE? <ul><li>The records give the fullest security of tenures and minimize the possibility of disputes and litigation </li></ul><ul><li>Enable owners to obtain credit more easily and to transact in property more quickly, safely and cheaply </li></ul>EFFECT OF REGISTRATION
  18. 18. WHAT IS A CHEQUE? <ul><li>At the same time, the records secure the rights of absentees and also prevent the growth of unwanted and illegal land ownerships </li></ul>EFFECT OF REGISTRATION
  19. 19. WHAT IS A CHEQUE? <ul><li>The title of the property should be clear, marketable and free from encumbrances </li></ul><ul><li>Always use the services of a competent Advocate for verifying the title of Property </li></ul>TITLE
  20. 20. WHAT IS A CHEQUE? <ul><li>Responsibility of the TRANSFEREE to investigate the title of the property </li></ul><ul><li>Once an understanding has been arrived the TRANSFEROR sends original documents to the TRANSFEREE </li></ul>INVESTIGATION OF TITLE
  21. 21. WHAT IS A CHEQUE? <ul><li>The Transferee issues a duly signed receipt known as an “ accountable receipt ” </li></ul><ul><li>Accountable Receipt records that the original title deeds are received which the Transferee undertakes to return to the Transferor on demand without claiming any lien for costs or otherwise </li></ul>ACCOUNTABLE RECEIPT
  22. 22. WHAT IS A CHEQUE? <ul><li>search clerk takes search in the offices of the sub-registrar to find out all the documents that are registered relating to the immovable property </li></ul><ul><li>ascertains the Cadestral Survey Number (CS) and the City Survey Number (CTS) </li></ul>SEARCH AT SUB REGISTRAR’S
  23. 23. WHAT IS A CHEQUE? <ul><li>Practice was to have title search for 60 years, as the mortgagor had 60 years time to redeem the mortgage under the then existing limitation laws. However, under the present limitation laws, the mortgagor has 30 years from the date the right to redeem or recover possession accrues. </li></ul>SEARCH AT SUB REGISTRAR’S
  24. 24. WHAT IS A CHEQUE? <ul><li>Usually under a deed of mortgage the time prescribed for redemption is between 2 to 5 years and therefore the title is usually traced back to 35 years to 40 years </li></ul><ul><li>reveals the devolution of title to the property </li></ul>SEARCH AT SUB REGISTRAR’S
  25. 25. WHAT IS A CHEQUE? <ul><li>The states of Maharashtra and Gujarat have introduced relevant provisions in the relevant statutes requiring registration of notices providing details of the pendency of any litigation in respect of the property </li></ul>LIS PENDENS
  26. 26. WHAT IS A CHEQUE? <ul><li>Transferee’s advocate issues a public notice in at least two local newspapers </li></ul><ul><li>Notice states that the transferee has agreed to purchase the property from the Transferor whose name is given and invites claims </li></ul>PUBLIC NOTICE
  27. 27. WHAT IS A CHEQUE? <ul><li>if no such claim is received, within the stipulated time it would be deemed that no such claim exists or waived. Notice is not binding on the real claimants to the property. In case of dispute such notice supports the Transferee’s contention that he is a bona fide purchase for value without notice of such claim </li></ul>PUBLIC NOTICE
  28. 28. WHAT IS A CHEQUE? <ul><li>The states of Maharashtra and Gujarat have introduced relevant provisions in the relevant statutes requiring registration of notices providing details of the pendency of any litigation in respect of the property </li></ul>LIS PENDENS
  29. 29. WHAT IS A CHEQUE? <ul><li>Enquire from the Corporation as to whether there are any claims of the Corporation on the property for any taxes, arrears of municipal bills or water charges or any other cess bills in respect of the property </li></ul>STATUTORY CHECKS
  30. 30. WHAT IS A CHEQUE? <ul><li>Any such arrears as mentioned are a first charge on the property </li></ul><ul><li>If not enquired, the Purchaser remains liable for all the claims, as the same is a first charge on the property </li></ul>STATUTORY CHECKS
  31. 31. WHAT IS A CHEQUE? <ul><li>Need to ascertain </li></ul><ul><li>whether the property or any portion has been notified under the Land Acquisition Act for any public purpose; </li></ul><ul><li>whether any notice, notification, action or claim is pending </li></ul>LAND ACQUISITION
  32. 32. WHAT IS A CHEQUE? <ul><li>whether the property or any portion thereof is included in the set-back; and </li></ul><ul><li>whether the property or any portion thereof is reserved for any public purpose that is, reserved for garden, school, hospital, development road or for any other purpose </li></ul>LAND ACQUISITION
  33. 33. WHAT IS A CHEQUE? <ul><li>The Hindu Succession Act, 1956 - governs Hindus, Buddhists, Jains and Sikhs, </li></ul><ul><li>Customary Laws of Muslims govern the Muslims </li></ul>FAMILY LAWS
  34. 34. WHAT IS A CHEQUE? <ul><li>Indian Succession Act, 1925 - govern the Jews, Indian Christians and Parsis. </li></ul><ul><li>However, succession to the property of any person whose marriage is solemnized under the Special Marriage Act, 1954 is regulated by the provisions of the Indian Succession Act, 1925 </li></ul>FAMILY LAWS
  35. 35. WHAT IS A CHEQUE? <ul><li>Indian Succession Act, 1925 - govern the Jews, Indian Christians and Parsis. </li></ul><ul><li>However, succession to the property of any person whose marriage is solemnized under the Special Marriage Act, 1954 is regulated by the provisions of the Indian Succession Act, 1925 </li></ul>FAMILY LAWS
  36. 36. WHAT IS A CHEQUE? <ul><li>Maharashtra Land Revenue Code, 1966 </li></ul><ul><li>Maharashtra Agricultural and Tenancy Act </li></ul><ul><li>Urban Land (Ceiling and Regulation) Act, 1976 </li></ul><ul><li>Bombay Public Trusts Act </li></ul>PROPERTY LAWS
  37. 37. WHAT IS A CHEQUE? <ul><li>property cannot be used for any purpose other than the sanctioned purpose </li></ul><ul><li>prior sanction of the relevant regulatory authority is required for the change in user of the property </li></ul>USAGE
  38. 38. WHAT IS A CHEQUE? <ul><li>absolutely essential to consider the restrictions imposed under various legislations on the sale or transfer of property or the change of user of the property under various circumstances </li></ul><ul><li>agricultural land, tribal land etc </li></ul>USAGE
  39. 39. WHAT IS A CHEQUE? <ul><li>Non Agriculture Permission </li></ul><ul><li>If agricultural land needs to be developed for residential/commercial/ industrial use, then such land has to be converted to non-agricultural land </li></ul><ul><li>Along with this, one needs to take the latest receipts evidencing the payment of Non Agriculture Tax </li></ul>USAGE
  40. 40. INSPECTION OF DOCUMENTS <ul><li>Documents pertaining to land </li></ul><ul><ul><ul><ul><li>Conveyance Deed or Sale Deed </li></ul></ul></ul></ul><ul><li>This is a deed by which the title of property is conveyed and ascertains whether the property is on the land belonging to the society/ builder/ development authority in which the property is located.  </li></ul>
  41. 41. INSPECTION OF DOCUMENTS <ul><li>Documents pertaining to land </li></ul><ul><ul><ul><ul><li>7/12 Extract </li></ul></ul></ul></ul><ul><li>This is a document issued by Tehsildar or the concerned land authorities giving details such as the survey numbers, area, date from which current owner is registered as owner </li></ul>
  42. 42. INSPECTION OF DOCUMENTS <ul><li>Documents pertaining to land </li></ul><ul><li>Index II </li></ul><ul><li>This is a document issued by the office of the Sub-Registrar of Assurances. It mainly mentions the names of the sellers & purchasers of a property for which the document is registered. </li></ul>
  43. 43. INSPECTION OF DOCUMENTS <ul><li>Documents pertaining to project / building </li></ul><ul><ul><ul><ul><ul><li>Development Agreement </li></ul></ul></ul></ul></ul><ul><li>Agreement entered into by the builder with the landowner contains the terms and conditions on which the landowner has permitted development of his property </li></ul>
  44. 44. INSPECTION OF DOCUMENTS <ul><li>Documents pertaining to project / building </li></ul><ul><ul><ul><ul><ul><li>Approved Building Plan </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>The building plan made by the Developer / Builder needs to be approved by the Municipal Corporation or the concerned authority </li></ul></ul></ul></ul></ul>
  45. 45. INSPECTION OF DOCUMENTS <ul><li>Documents pertaining to project / building </li></ul><ul><ul><ul><ul><ul><li>Intimation of Disapproval “IOD” </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>IOD is issued to the builder intimating that the proposed plan submitted by the builder is disapproved to the extent of details mentioned in the said IOD </li></ul></ul></ul></ul></ul>
  46. 46. INSPECTION OF DOCUMENTS <ul><li>Commencement Certificate </li></ul><ul><li>This certificate is given by the Municipal Corporation permitting the Builder to begin construction. This is done once the plans have been approved </li></ul>
  47. 47. INSPECTION OF DOCUMENTS <ul><li>Building Completion Certificate </li></ul><ul><li>This Certificate is given to the Builder once the said building is complete </li></ul><ul><li>Occupation Certificate </li></ul><ul><li>This certificate is given when the building in all respects is fit for occupation </li></ul>
  48. 48. INSPECTION OF DOCUMENTS <ul><li>Flats </li></ul><ul><li>Approved plans/specification </li></ul><ul><li>Commencement certificate </li></ul><ul><li>I.O.D. </li></ul><ul><li>Occupation Certificate </li></ul><ul><li>Building Completion Certificate </li></ul><ul><li>Title Certificate </li></ul><ul><li>Deed of Transfer </li></ul>
  49. 49. THANK YOU
  50. 50. CONTACT US <ul><li>UNIVERSAL LEGAL </li></ul><ul><li>5th Floor, Kimatrai Building </li></ul><ul><li>77/79 Maharshi Karve Road </li></ul><ul><li>Mumbai – 400 002 </li></ul><ul><li>Phone : 2203 4293 - 95 </li></ul><ul><li>Fax : 2203 9845 </li></ul><ul><li>E-mail: [email_address] </li></ul>

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