Transfer of Title Deed in Real Estate

A title refers to the legal ownership of a property which can be under the name of an individual or an organization. A deed is a mode or simply a document through which the ownership is marked legal. Now when a buyer and a seller enter an agreement, the title deed plays an important role in transferring the ownership of the property from the seller to the buyer. It is an extremely important document and a buyer must carefully check all the corners before signing it.

Transfer of Title means relinquishing the rights, ownership, and interests in a property from one entity to another. A title deed is a binding contract between two parties that is deemed legal by the law. It means the transfer of all the rights to the legal owner which is impossible without the title deed. The title deed and the sales deed are often misunderstood as there’s a very subtle difference between the two. A sale deed can be a title deed that is required to buy property, whereas the title deed also includes gifting property and even property on lease. However, one thing to note is that the title deed is mandatory for the completion of a sale.

What are the contents of a Title Deed?

There are important clauses and annexures that should be thoroughly read by the buyer before signing the document. The document must include:

1. The identification and actual boundary of the property

2. Any and all rights regarding the property

3. The chain of titles up to the present seller

4. The method of property delivered to the buyer

5. Information about the parties involved in the transaction

6. The sale consideration clauses

7. Any further applicable terms and conditions

Things to know about the Transfer of Title Deed:

Before agreeing to the terms and conditions and signing the document, it is necessary to get clarity on a few legal conditions.

1. A buyer must clarify all the legalities and ensure that the property is free from any legal impediment.

2. In case any loan was acquired against the property in question, then the mortgage must be cleared before signing the deed.

3. The date mentioned on the transfer of title deed should be exact on which the rights of the property will be handed over to the buyer.

4. Within four months of the execution of transference, all the documents must be submitted to the Sub-registrar’s office.

5. The deed should contain signatures of at least two witnesses.

The transfer of title deed is carried out on a non-judicial stamp paper and is registered at the local registrar office. Once that is done the registration fees and the stamp duty charges have to be paid. The stamp-duty charges vary as per the state’s legislation. The transfer of title deed can be canceled in situations where it is seen that it is violating the law or the buyer feels that the transaction would incur a loss in the future. If the deed was registered under the Indian Registration Act, then the cancellation is possible with mutual consent between the parties involved in the transaction.