[BUYING AND SELLING REAL ESTATE IN INDIA]
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transferor, the property owned or landlord, regular payments from the transferor for a specific number of months or years. 6.4. Inheritance or Will After the death of a person, his property devolves in two ways - according to his Will i.e., testamentary, or according to the respective laws of succession, when no Will is made. In case an individual dies intestate (no Will is made), the laws of succession come into play. The law of succession defines the rules of devolution of property in case a person dies without making a Will. These rules provide for a category of persons and percentage of property that will devolve on each of such persons. Under the Indian Succession Act, 1925, a Will is a legal declaration of the intention of the testator, with respect to his property which he desires to be carried into effect after his death, however certain formalities must be complied with in order to make a valid Will. It must be signed and attested, as required by law. A Will is primarily intended to dispose of property in the manner the Testator desires. 7. REGISTRATION AND MUTATION OF LAND RECORDS The registration of a property involves adequate stamping and paying the registration charges for a sales deed and having it legally recorded at the sub- registrar’s office. If the property is purchased from a developer, registering the property amounts of an act of legal conveyance. If it is the second or third transaction for the property, it could involve a duly stamped and registered transfer deed.
The second step after registering a property is Mutation of land records with respect to the same. Mutation refers to the change of title ownership from one person to another when the property is sold or transferred. By mutating a property, the new owner gets the property recorded on his name in the land revenue department and the government is able to charge property tax from the rightful owner. The documentation procedure and the fee payable vary from state to state. In case of ownership related to land, mutation is considered a vital document. 8. REAL ESTATE INVESTMENT TRUST A Real Estate Investment Trust (“ REIT ”) is a company which develops and own ‘income producing’ real estate properties. The initial public offering of India’s first REIT was launched on 18 th March 2019. The shares of Indian REIT started trading from 01 st April 2019 in Bombay Stock Exchange. REITs are registered with the Securities and Exchange Board of India (“ SEBI” ) under the SEBI (REITs) Regulations, 2014 (the " REIT Regulations ”) as amended from time to time. The REIT Regulations, inter alia, set out the registration requirements, procedure of registration, and eligibility requirements of REITs. It is mandatory for units of all REITs to be listed on a recognised stock exchange having nationwide trading terminals, whether publicly issued or privately placed. REITs are companies that own or finance income-producing real estate in a range of property sectors. REITs provide investors the chance to own valuable real estate, present the opportunity to access dividend-based income and total returns, and help communities grow, thrive, and revitalise. REITs allow anyone to invest in portfolios of real estate assets the same way they invest in other industries – through the purchase of
ILN Real Estate Group – Buying and Selling Real Estate Series
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