[BUYING AND SELLING REAL ESTATE IN INDIA]
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conditions, governing the ability of the seller to convey the immovable property.
Conveyancing is the legal process for transfer of ownership of property from a seller to the buyer and this term is used in both buying and selling of immovable property. Amongst various modes of conveyancing, the most commonly used means of transferring a property in India are: 6.1. Sale Sale is a transfer of ownership in exchange for a price paid or promised or part paid, and part promised. It is pertinent to mention that as per the Transfer of Property Act, 1882 immovable property does not include standing timber, growing crops or grass. 6.2. Gift A gift can be movable or immovable property that is transferable and tangible. As gifting is a voluntary action, the instrument evidencing gift must mention that the instrument has been made voluntarily and out of the donor’s own choice without any force or coercion. The deed should also declare that the donor i.e., person who is gifting, is solvent (not bankrupt) and that the gift is being made without any consideration. However, there are certain aspects that need to be kept in mind while making gift – (i) as minor is not capable of entering into a valid contract, so the minor cannot make a valid gift deed; (ii) a gift once made cannot be revoked; (iii) gifts made to relatives defined by the Income Tax Act, 1961 are exempt from tax in the hands of the donee. 6.3. Lease Section 105 of the Transfer of Property Act, 1882 states that a lease of immovable property is a transfer of a right to such
5.3. Conversion and land use permission With increasing urbanisation and merging of revenue lands with urban conglomerates, and restriction on purchase of agricultural property by non- agriculturists, conversion of property for non-agricultural usage has assumed crucial significance. In the event actual use of land is different from the notified zoning, it is mandatory to obtain orders from the Town Planning Authority permitting change of land use. 5.4. Encumbrances search Inspection of registers and records at the jurisdictional sub-registrar of assurances, where documents pertaining to immovable property are registered and information available on the official web portal of the Ministry of Corporate Affairs, in case of the seller being a corporate entity, must be conducted as the same will reveal information of any registered encumbrance on the property. 5.5. Physical inspection of the immovable property It is recommended that the purchaser must undertake a physical inspection and confirm the extent and measurement of the immovable property intended to be purchased. In case of a vacant land, it is recommended to identify and demarcate the boundaries and access to the property and further, ascertain any other physical attributes that may impede enjoyment of the property. 6. MODES OF CONVEYANCING IMMOVABLE PROPERTY
ILN Real Estate Group – Buying and Selling Real Estate Series
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