XA

Friday 14 February 2014

FORMALITIES TO BE COMPLETED AFTER PURCHASE OF PROPERTY


Ownership over the immovable property will not be conferred by mere execution of the sale deed in favour of the purchaser. There are many other formalities required to be completed after the purchase. Such post registration formalities, subsequent to the registration of the sale deed has been discussed below:

  1. Obtain original documents of title from the seller in order to compare and confirm the same with the copies and the same has to be scrutinized by the purchaser's Advocate. After thorough scrutiny by the advocate and if further original documents are necessary, it is advisable to ensure the production of such documents in originals only. If you are availing housing finance, then you have to apply for the certified copy of your sale deed in the concerned jurisdictional Sub-Registrar Office.

  1. Apply for the latest and updated encumbrance certificate in the concerned Sub-Registrar Office. It is also important to verify whether such Encumbrance certificate reflects the execution of sale deed in favour of the purchaser along with the details regarding the date, registration number and also the name of the parties to the deed.

  1. Possession of property is very important. The Seller should hand over the vacant possession of the property to the purchaser. In order to ensure that the seller is in actual possession of the property, the purchaser should inspect the property a day prior to the registration. If the seller is in physical possession of the property then handing over the vacant possession of the same is very easy. On the other hand, if the property is in occupation of the tenants, it is very important to ensure that the tenants are vacated before registration. However, the fact that the seller is in physical or constructive possession, has to be clearly incorporated in the sale agreement. As per the terms of sale agreement, the purchaser should receive all the keys of the property at the time of registration. If possible, main door lock can be replaced with the new lock. In case the property conveyed to the purchaser is a vacant site, it is necessary to put display board with the wordings “This property is owned by ‘X’ trespassers will be prosecuted”. Further, fencing around such sites or constructing compound wall, though expensive, is preferable. Periodical visits to the site are also advisable in order to detect encroachment over the site, if any.

Consent Letter
The purchaser should verify that all the taxes, statutory payments in respect of the property including power, water charges are paid up-to-date by the seller. Further, the purchaser must collect all the receipts for the statutory payments and should also verify at the concerned offices, whether there are any arrears is there or not. Power and water supply agencies collect deposits from the consumers before providing services. In order to transfer such deposit in the name of the purchaser, consent letter from the vendor has to be obtained from the vendor.

Registration of Khatha:
Khatha Certificate and Khatha Extract are one of the mandatory and important documents to prove the present ownership of the purchaser over the property after execution of the sale deed. Purchaser must ensure that the Khatha in the records of the local bodies, gram Panchayath or the city corporation is transferred to his name.

Both the seller and purchaser have to sign the application for transfer of Khatha, which is better if done simultaneously while signing the sale deed in order to avoid any future disputes. Application for Transfer of Khatha has to be duly filled along with copy of the sale deed enclosed and the same has to be submitted before the concerned authority and to obtain acknowledgement to that effect. In case of the property falling within the limits of BMP, then applications for Khatha transfer may be filed in any of the citizen service centers or any of the 30 revenue offices along with the documents mentioned in Sarala Khatha Scheme Book. Documents required to be produced includes Mother Deed, sale deed, National Savings Certificate of Rs.200, sketch showing the site details and Betterment charges paid receipt. If the Khatha has to be transferred in the name of one of the co-owners, then No Objection Affidavit declaring that they do not have any objection for transfer of khatha in the name of the applicant, duly sworn before the notary by the remaining co-owners, has to be submitted along with the application for transfer of khatha and other required documents.

Sarala Khatha Scheme Book, introduced by BMP, gives all the details about the services of the Revenue Department, documents to be filed, fees required to be paid, working hours and also rates for assessment of property tax under the Self-Assessment scheme.

For transfer of Khatha in the name of the purchaser, transfer fee will be collected and subsequently written confirmation of such transfer endorsement will be issued in the name of the purchaser. During the process of transferring Khatha, the property is again re-assessed on the basis of revised property taxes, if any, and then issue assessment notice in the name of the purchaser. It is very important that the tax paid receipt should be in the name of the new/present owner.

Khatha Extract
After issuing Khatha Endorsement, we have to apply for Computerized Khatha Certificate and Khatha Extract. Khatha Extract reflects the name of the Present Owner, Tax assessment details, sital area and Built up area.

CMC Khatha
If the property has falling under the CMC jurisdiction, Khatha Endorsement is issued in the name of the Present Owner. City Municipal Councils (CMC) were issuing Form No.19, CMC Khatha in the name of the Present Owner. Now-a-days Form No.III Khatha is being issued to the properties falling within the limits of CMC since issue of Form No.19 has been stopped from 29/05/2003.

The properties falling within the limits of Village Panchayath, Form No.9 and 10 is issued in the name of the Present Owner, which refers to Assessment Order and Assessment Extract.

Transfer of Electricity supply
After the Municipal authorities transfer the Khatha in the name of the owner, water meter and power meter installed are required to be transferred in their name. You have to submit the necessary application along with the deposit transfer letter issued by the previous owner. After completion of all the formalities, water and electricity authority will change the present owner name in their records. The authorities will issue written confirmation of transfer and raise the bills in the name of the Present owner. This will help the owner to verify and check up their electricity and water bills to be raised in future.

Annual property tax and periodical Encumbrance Certificate has to be regularly obtained at least once a year.

After completion of all the post registration formalities, absolute title, right over the property will be conferred to the purchaser thereby enabling the purchaser to enjoy the peaceful and uninterrupted possession of the property.

For more details,

No comments:

Post a Comment