Often people think that paying the entire price of the house and coming in hand in hand means that now they have become the owner of that property. To some extent it is true that you get his physical possession, but legally you do not become his full lord. It is mandatory to complete some important legal procedures to get real ownership.
1. Sale Deed / Banama:
The first and important step is to prepare a sales letter or banama. It is a legal document that certifies the transfer of property in favor of the buyer (buyer) by the seller (seller). It mentions complete details of the property, information from both sides and the terms of sale. It is signed by both sides and signs of witnesses.
2. Registration:
It is not enough to get only a sales letter. It is very important to register this sales letter in the government record, that is, it is very important to get it registered. This process takes place in the sub-registrar office. At the time of registry, the stamp duty and registration fee prescribed by the government have to be paid. Only after the registry is done, the sales letter is legally valid and it is a sure evidence that the property has now been transferred in your name.
3. Mutation (Mutation):
Another important process after the registry is filing and dismissing. This means that in the government (usually of the Municipal Corporation or Revenue Department) records, the name of the old owner of the property is removed and the new owner ie your name. It is also necessary to get admission and dismissal so that property tax and other government liabilities can come in your name in future and the records of property are fully updated.
Freehold vs Lizhold and Home Loan:
It is also important to note whether the property is freehold or leasehold. You have complete ownership over freehold property, while leasehold property is found on lease for a certain period of time. If you have bought a house with a home loan, then until you pay the entire loan, the original documents of the property live with the bank. However, the registry and filing and dismissed are in your name only.
