Property Laws

FAQs

1. What is property law?
Property law regulates the ownership, transfer, and use of immovable properties such as land, buildings, and apartments. It includes rights, title verification, documentation, and disputes.

2. What documents are essential for property purchase in India?
Key documents include title deeds, parent documents, encumbrance certificate, sale deed, khata/registration certificate, and property tax receipts.

3. What is the process of property title verification?
Title verification involves examining historical records, chain of ownership, encumbrance certificates, and checking for legal claims or charges against the property.

4. What is due diligence in property transactions?
Due diligence covers legal validation of property ownership, physical inspection, scrutiny of government and municipal approvals, and compliance with zoning and land use laws.

5. Can agricultural land be purchased by non-agriculturists or NRIs?
Restrictions may apply based on state laws, and NRIs generally cannot acquire agricultural land, plantation property, or farmhouses in India.

6. What are the common forms of property transfer?
Real estate can be transferred via sale, gift, lease, partition, inheritance, or relinquishment deed, each with prescribed documentation and stamp duty implications.

7. What does property mutation mean?
Mutation is the updating of government records to reflect the transfer of ownership after sale, inheritance, or other changes. It is required for paying property taxes.

8. What role does registration play in property transactions?
Property transactions (excluding leases under one year) must be registered at the sub-registrar’s office; unregistered documents may not be legally valid or enforceable.

9. What is property encumbrance, and how is it detected?
Encumbrance refers to charges, liens, or claims against the property, often documented in the Encumbrance Certificate issued by government authorities.

10. How are joint properties divided or partitioned?
Partition deeds or family settlements determine the division of jointly owned property; these must comply with legal formalities and may require registration.

11. Who issues a legal opinion for property purchase?
Legal opinions are issued by qualified advocates after a thorough review of relevant documents and title verification.

12. What disputes commonly arise in property transactions?
Disputes may involve boundaries, title clarity, co-ownership, inheritance, non-payment of sale consideration, or encroachment.

13. What is the procedure for property inheritance?
Inheritance follows succession laws. Legal heirs must produce a succession certificate or legal heir certificate and register the transfer.

14. How is property tax calculated and paid?
Property tax is assessed based on municipal guidelines and paid annually or semi-annually to local authorities.

15. What regulations apply to real estate transactions for NRIs?
Purchases and sales by NRIs are governed by FEMA rules, require specific documentation, and may have repatriation or taxation conditions.

16. What is a power of attorney in property matters?
A power of attorney allows an appointed agent to act on an owner’s behalf, often used for property management or sale by absentee owners.