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Conveyancing is the legal process of transferring property ownership from one person or entity to another. In Delhi, India, conveyancing mainly relates to the buying and selling of immovable property such as land, apartments, houses, and commercial spaces. This process includes drafting and executing legal documents, conducting due diligence, registering the deed with the relevant government authority, and ensuring all statutory compliances are met. Conveyancing law in Delhi operates under various statutes, regulations, and local guidelines issued by the Delhi government and central authorities.
The process of conveyancing can be complex, especially in Delhi where laws and procedures frequently change. Here are common situations where legal help is recommended:
Conveyancing in Delhi is governed by various laws and rules. Key aspects include:
Understanding these and ensuring compliance through the help of a qualified conveyancing lawyer can prevent legal complications.
A Sale Deed is the primary document establishing the transfer of property ownership from seller to buyer. It contains essential details about the property, parties, terms, and transaction, and must be registered for the transfer to be legally recognized.
Title verification involves examining past sale deeds, encumbrance certificates, revenue records, mutation records, and checking for any court cases or pending loans. A lawyer can conduct due diligence to confirm the title is clear before the purchase.
Key costs include stamp duty, registration fees, lawyer's fees, and incidental charges such as title searches, notary and documentation charges. Stamp duty and registration rates are prescribed by the Delhi government and vary based on property value and other factors.
While Power of Attorney (PoA) can enable someone to act on your behalf, the Supreme Court of India has ruled that PoA itself does not transfer ownership. Sale Deed registration is mandatory for lawful property transfer.
Both buyer and seller usually need to appear before the Sub-Registrar for registration. In certain cases, representatives duly authorized through an executed PoA can complete the process on their behalf.
Essential documents typically include previous title documents, Sale Deed, No Objection Certificates (NOCs), identity and address proof of parties, PAN card, property tax receipts, and passport-size photographs, among others.
NRIs are permitted to buy properties (except agricultural land, plantation property or farmhouses) in India, including in Delhi, while adhering to conditions under the Foreign Exchange Management Act (FEMA). Foreign citizens need to follow additional procedures. Legal guidance is essential for compliance.
Stamp duty in Delhi is calculated as a percentage of the higher of actual transaction value or the circle rate set by the authorities. The rate varies based on factors such as gender of the buyer and property usage.
Mutation refers to updating government records to reflect the new ownership after the sale or transfer of property. This is critical for taxation and municipal records but does not confer title or ownership by itself.
If a property is not registered, the buyer does not acquire legal ownership, and the document cannot be used in court as evidence of title. Failure to register can also attract penalties and future disputes.
Various governmental bodies and organizations can provide information and assistance related to conveyancing in Delhi. Some useful resources include:
If you anticipate a conveyancing transaction or are facing legal difficulties with property transfer in Delhi, follow these steps:
Taking these measures can help you avoid common pitfalls, safeguard your investment, and ensure your property rights are fully protected under Delhi law.
