OUTRIGHT SALE / PURCHASE
When a customer is buying a property – Residential or Commercial, it is referred to as an Outright Purchase Transaction. When a customer is selling his/her property – Residential or Commercial, it is referred to as an Outright Sale Transaction. In both the transactions, there are certain documentation processes & formalities involved, such as:-
Documents And Formalities Required For Buying A Property:
- Identity Proof like Pan Card, Aadhaar Card, Voters’ ID Card.
- It’s important to be careful of the Sale Deed/Agreement and also check that the complete property chain is mentioned in the Deed.
- Ensure that the building has been constructed as per the sanctioned plan and deviation, if any, is in the allowed limits.
- Ensure that the developer has clearance certificates from the Electricity Board, Water and Sewage Board and other concerned departments.
- Commencement Certificate and Occupancy Certificate are other important documents that are necessary while buying a property. Check out the genuine-ness of the documents with the concerned authorities.
Things To Check At The Time Of Signing The Agreement:
- Building Name, Wing Details & Flat Number
- Details of the area of the flat, including Super Built Up Area, Covered Area and Carpet Area & Costing details of the flat.
- Date of Possession, penalty, if any, in case of delay.
- Ensure that the documents of Title of the property you intend to purchase are clear. A defective Title will create problems.
- Ensure Agreement for Sale and Sale Deed, duly stamped, executed and registered are in your possession. Both should contain fair clauses for both the parties.
Stamp Duty & its relevance:
Stamp Duty is a tax in line with sales tax or income tax collected by the Government. Technically speaking, Stamp Duty for any property transactions is
paid under Section 3 of the Indian Stamp Act, 1899. Stamp duty is payable in full and on time. If there is a delay in payment, it attracts a penalty at the rate of 2 percent per month on the remaining amount. Most of all paying stamp duty makes the document acquire evidentiary value and is admitted in any court of law in India.
LEASE / LEAVE & LICENSE
Difference between ‘Lease’ and ‘Leave & License’:
The following are some of the differences between Lease and Leave & License:
1. A lease is a transfer of an interest in specific property, while license is a mere permission to use the property, without any transfer of any interest in the
property.
2. Licensee only acquires a right to occupy the property and the legal ownership and the possession of the property remains with the licensor. In case of a lease, the legal possession the property is deemed to be transferred to the lessee.
3. A licensee cannot sub-license the property to a third party under any circumstances. On the other hand, a lessee can sub-lease the property to a third
party, unless the lease agreement expressly provides otherwise.
4. Lease is an inheritable right. A license is personal and exclusive to the licensee i.e. on death of the licensee it automatically stands terminated. A Lease Deed / Rent Agreement is a contract wherein the Lessee (Tenant) agrees to pay the Lessor (Landlord) periodic Rent for the use of an immoveable property. A Rental Agreement is also called a Leave and License Agreement.Stamp duty and registration fee needs to be paid and the Lease / Leave & License Agreement duly signed has to be formally registered. While dealing with Rent/Lease contract in either capacity (as a Landlord and Tenant or Lessor and Lessee), one must avail the services of a competent professional lawyer as it involves the legal provisions of the Contract Act and Transfer of Property Act. MumbaiResidentialProperties.com has its team of legal experts to guide you.