How to Change Ownership of a House

How to change the ownership of a house? Getting ownership of property means that you get the right to sell, use or rent the property. It means you own that property. Changing the property ownership of a house requires various steps. It includes the drafting sale deed, get no objection certificate from authority, and register the transfer with sub registrar.

It is suggested to hire a lawyer to change house ownership, and avoid legal issues. You should also carry all necessary documents in order to smoothly transfer home ownership to another person. Read this blog to know how to change ownership, how QBCon helps you to navigate through this legal procedure, reasons to transfer ownership, etc.

QBCon makes House ownership Transfers Easier

Changing the house ownership is a legal procedure that involves various legal documents and approvals. Whether you're buying a house for sale in rajkot or transferring property to a family member, the process can be complex. At QBCon, you can consult with our trusted legal experts, property advisors, and get comprehensive documentation support.

Whether you want to change ownership through sale, gifting, or another method, we assist you with a step-by-step procedure and ensure a smooth transfer. Our experts work with you and make stress-free property transfers.

What is property ownership?

The property ownership means that you legally own property. It gives you the right to sell, rent, or use this property. You are responsible for managing space, from renovations to planting gardens within your property.

Transfer ownership is important for various reasons, like to pass property to your family members, to pass to friends when you sell or move, to give someone, etc.

Reasons to Transfer Home Ownership

Here are the reasons why you should transfer home ownership

• Sell property

You should transfer ownership to a new buyer, whom you sell your home to. It gives full rights to the new owner on the property.

• Inheritance

You can claim inheritance legally by getting ownership of the house, if your family member passed away or left home.

• Familial changes

Divorce or marriage can also lead to house ownership changes. It is important to transfer ownership if you and your partner decide to split or share assets through a loan.

• Gifting

If you want to give your home to your loved ones, then you should transfer the property. This ownership requires a formal transfer to keep the property in his name.

• Willing

While preparing the will, you need to transfer property. This ownership will be applicable after you have gone away and a person specified in will can get property ownership.

Different Property Transfer Options

To change ownership of a house, there are different property transfer options available to use. Let us discuss them in detail.

• Sale Deed

A sale deed is the most common method of transfer property possession. It is a legal report that formalizes the transfer of possession from the buyer to the seller once the sale is finished. This file is important in property transactions and guarantees the buyer’s legal possession.

• Transfer deed

A transfer deed is the legal file used when selling property from its official owner to some other party. Earlier, it is called "conveyance" or "venture," now called a "transfer", if the transfer is of an current Leasehold name.

• Gift Deed

A Gift Deed is used while the transfer of property occurs without any financial change. The property is given by the donor to donee voluntarily. The deed should be performed in writing, signed by the donor, and registered with the sub-registrar. In some cases, stamp duty is applicable. It is irrevocable once achieved, and the donee will become the legal proprietor of the property.

• Will / Testamentary Transfer

A Will permits a property proprietor to transfer their property to heirs upon their dying. The transfer is conditional upon the dying of the property owner. The Will must be in writing, signed by the testator (the property proprietor), and witnessed via at least witnesses. It needs to be confirmed through a courtroom to be enforceable in a few cases. The transfer will impact after the demise of the testator, and the distribution is ruled by the terms laid out in the Will.

• Relinquishment deed

A relinquishment deed could be created and recorded so that it will permit the co-owners to formally transfer their part of the property to the other co-owner. Hindu joint property co-proprietors have the selection to renounce their possession which will surrender their claim to this movable property.

• Partition deed

A reliable report that splits an owner's rights and pastimes is a partition deed. Once a deed is complete, the owner is free to sell, rent away, or transfer possession of the property to anyone else. The partition deed is generally created when a jointly owned property goes through the distribution technique.

Required documents for property Transfer

Here are several documents essential to gather before learn how to change ownership of a house

• Aadhar card

• Passport of both the buyer and the seller

• Original Old sale deed verified copy

• Copy of the latest property register card

• Copy of No Objection Certificate for the Land Ceiling Act

• Copy of Municipal tax bill

• Construction completion certificate

• Written contract between the initial buyer of the building and the new owner

How to Change Ownership of a House

The process to transfer ownership of the house is split into various key steps. Let us tell you How to change ownership of a house.

• Due Diligence

Before starting up a property transfer, you should conduct the due diligence. This consists of verifying the property's possession, title history,  and the legality of the development. It is helpful to interact with a legal professional to scrutinise the applicable documents, including the sale deed, title deed, encumbrance certificates, building approvals, and property tax receipts.

• Agreement to Sell

Once the due diligence is completed and each parties agree, an agreement to sell is done. The agreement mentions terms and conditions for sale, along with the sale consideration, payment schedule, possession date, and every other applicable clause. It is important to ensure that the agreement is legally binding and signed by each party.

• Sale Deed Execution

After the agreement to sell, the next step is the execution of the sale deed. The sale deed is a legal document that transfers the possession rights from the buyer to the seller. It includes information which include the property details, sale attention, rights and responsibilities of both events, and other important clauses.

• Payment of Stamp Duty and Registration

Stamp responsibility is a state-wise tax imposed on property transfers. The client is responsible for paying the stamp obligation based on the property's market value or the sale attention, whichever is better. You should calculate the relevant stamp obligation and make the price on the specific financial institution.

• Handover and Possession

Once the sale deed is registered and all economic duties are fulfilled, the seller hands over the ownership of the property to the buyer as according to the agreed-upon possession date. A joint inspection may be carried out to ensure that the property is delivered in the agreed state.

• Mutation and Update of Records

After taking possession, the client must provoke the technique of mutation. Mutation consists of updating the property information with the client's name as the new proprietor. This process is typically achieved at the local municipal company or panchayat office. The purchaser must submit essential documents, updated property tax receipts, and identification proofs to finish the mutation process.

Conclusion

The house ownership process in India consists of a step-by-step approach. This process consists of due diligence, agreement to sell, sale deed execution, payment of stamp duty and registration, possession handover, and mutation of records. You should adhere to legal requirements and ensure the right documentation to get a smooth and legal property transfer.

FAQs

Q1. How to transfer property ownership after death?

Ans: You can easily transfer ownership of property after death by make will. If there is no will, then the property will automatically go to legal heirs of the deceased owner of property.

Q2. How long does a property transfer take?

Ans: The property transfer process takes 25 to 35 days legally.

Q3. What are the essential documents for property transfer in India?

Ans: The required documents for ownership are the original sale deed, property registration papers, latest tax receipts, approved building plans, No Objection Certificates, and ID proofs of the seller and buyer.

Q4. How is stamp duty calculated during property transfer?

Ans: Stamp duty is a tax paid during the property transfer. It is 4-7% of property sale value and market value, that is higher. The exact stamp duty varies in each state, so remember to check it during the ownership process.

Q5. Do I need lender permission for property ownership?

Ans: Yes, you need lender permission for property ownership if you have an outstanding loan. 

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