Essentials to know about property transfer
Buying a home or property is not as simple as selecting the property and sealing the deal. The journey itself is tiresome and prolonged. There is a lot more that needs a lot of attention and care, even purchasing a property. The happiness when you own a house is priceless, blissful, and legally suitable.
When it comes to finalizing the exact property, things can be pretty inconvenient. If it is not done with discretion, then two parties may end up in trouble or some loss or even fraud. That is why it becomes highly crucial to hire real estate agents to take us through the process briefly. However, it doesn’t imply that you can carefreely leave the whole work on the real estate agents. It is a slight possibility that they might not be that trustworthy. Therefore, it is always suitable to do the essential paperwork and legal formalities by yourself to remain on the safe side.
Here we have listed some tips that are essential to keep in mind while transferring property. These tips would shed light on the necessary elements and would save you a lot of time going through legal books by yourself.
- DIFFERENT TYPES OF DEED
One must know the fact that there are different types of deeds before making any decision. Generally, there are four types of acts- sale, relinquish, gift deed, and transfer.
Relinquish deed is to be constructed when the property owner transfers his/her rights to the owner and thus relinquishes a share of the same stuff. The sale deed is the most commonly practiced. A transfer deed is used for the property transaction, but it should be done in the presence of a witness, and this contract cannot be signed while the property is on sale. A gift deed suggests when someone is gifting the property, that does not include obtaining a price. But it is needed to be signed in the presence of a witness and registered before granting.
- MEMORANDUM OF UNDERSTANDING (MOU)
It accommodates the crucial information regarding the property’s actual price, the date of the agreement, the consent and brief details of both parties, and the duration by which the amount is supposed to be paid. It must be signed and read attentively to avoid any dispute in the future.
- HIRING A PROPERTY CONSULTANT
Hiring a property consultant or an attorney is favorable while dealing with property transfers. They can provide better advice as they are well aware of every rules and regulation and formalities.
- PRESENT MARKET VALUE
Please make sure of your property’s current market value that you are about to purchase or sell because, in any case, you don’t want to incur losses.
- LEGAL FORMALITIES AND FRAMEWORK
Several legal formalities are required to be done while transferring property, such as notarizing the deed. Thus, you must be well aware of all the documents needed for such formalities.
- PROPERTY TAX RECORD
You must update the concerned authorities regarding the transfer of property for taxation purposes, or else the previous owner would be charged, not the new owner.
- CHANGING NAME IN PROPERTY TAX DOCUMENT
Make sure that you change the name on the property tax documents. You are required to submit a few copies to the commissioner revenue for the same. The verification would be completed in 25-30 days!
Hence, These are the few essential things that you should keep in your mind while transferring property. It is always advisable to be cautious and use discretion in legal matters.