Immovable property cannot be sold by a letter of allotment and would require execution of a deed of conveyance.

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Buying a new house or an apartment will require a buyer to take a few measures to ensure a good title. Immovable property cannot be sold by a letter of allotment and would require execution of a deed of conveyance commonly known as a sale deed by the seller in favor of the buyer.

The following checklist will help verify the title:

(i)    The title deed /document is in the owner’s name, issued by the revenue record department under the seal of the Tahsildar.

(ii)     The owner’s title for the preceding 15 years (at least) shows no encumbrance(s) such as a mortgage existing.

(iii)    The property is transferable and heritable.

(iv)     The transferor is competent and/or authorized to transfer the property.

(v)      The property is freehold.  In the event the property is a leasehold one, the prospective buyer will be required to submit an application to the authority to obtain a transfer memorandum, which is issued only after verification and where after, the purchaser will have to ensure execution and registration of a sale deed. The purchaser will have to check whether the lease rent payable is one time only or on a yearly basis and whether there can be any increase at a later date.

(vi)     All receipts etc. pertaining to payment of taxes, electricity bills, Society Dues and water bills must be checked.

(vii)     The buyer could submit an inspection form along with Form 29 to the Sub registrar’s Office, to provide information on the location of the property and the date of original registration of the property.

(viii)   In the case of newly-constructed apartments, it would be desirable to require the builder to offer for inspection and verification of all necessary permission including sanctioned plans and environmental clearance if applicable.

(ix)   The next step is to have the sale deed stamped with the requisite stamp duty and submitted to the office of the jurisdictional sub registrar of assurances. The buyer and the seller would be required to be present and complete prescribed formalities.

(x)     The final step is to have “mutation” effected in the name of the purchaser by submitting an application together with prescribed an affidavit, indemnity bond, and a certified/ notarized copy of the registered title deed.  The circle revenue office will thereafter issue a mutation letter in favor of the buyer.

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