Real Estate is the backbone of a Country’s infrastructure. A Country’s growth and prospects are calculated based on the present real estate market. So, as an individual, you must have legal information about real estate transactions when buying and selling a property in India.
When you buy a property in India, there are a lot of rules and regulations one must follow to obtain legal ownership of land. Before you obtain a Title deed for any property, you must understand its meaning, importance, types of title deeds, and subsequent use in the process.
This blog will provide comprehensive details on Title Deeds, their importance in real estate transactions, Types of Title Deeds, Obtaining a Title deed, common issues & associated disputes.
What is a Title Deed?
Let us start this blog by giving you a simple definition of Title Deed.
A Title Deed is a legal document only that signifies the bounds of the owner’s (title) name and rights to an individual. Also known as a Property deed, this document gives you the right to legally own, build, live, or sell this land in the future.
Title Deed adds the legal aspect or transaction in a formal way for owning land in India. This is an official document that makes the owner the heir to that specified land.
Generally, a Sale deed is given by the Seller to the buyer, signifying the change in ownership of the land. This is a legal acknowledgment for transferring land ownership rights for any subsequent future claim.
Also Read: What is Property Valuation?
Importance of Title Deeds
Title deeds are very important in Real estate transactions. The new owner claims the rights to the Property by exchanging money with the Seller. Here are the main benefits of Title Deeds.
- Legal Ownership: A Title deed binds the owner’s name and land as legal ownership. This acts as legal proof to recognize an individual as a property owner.
- Protection of Rights: This title deed protects the rights of that piece of land. An owner can build and use the land for any purpose within the local laws and restrictions. It also protects against any risk of fraud or illegal activity in the future.
- Evidence: Title deeds are legal evidence of ownership or a change in ownership in government records, thus giving individuals complete claims and rights for that specific piece of land.
- Finance: Title deeds can also help acquire loans from financial institutions, keeping things smooth between the lender and the borrower.
Also Read: What is IFMS in Real Estate?
Types of Title Deeds
Multiple title Deeds are prevalent in the Indian reality market. Each deed has specific terms and conditions that individuals must adhere to. Here is a brief explanation!
Sale Deeds: A Sale deed signifies the change of name in ownership of the Property. So when a Buyer buys the Property, and the Seller sells the Property for the exchange of money, all the real estate transactions are put together inside a Sale deed. This legal document should be registered at the sub-registrar office for authenticity.
Gift Deeds: This title deed signifies the legal change of property ownership by gifting. Still, this legal document must be registered at the local sub-registrar office.
Mortgage Deed: This deed signifies the loan obtained, keeping the Property as a mortgage. So, if the situation arises for any payment default, the lender can recover the subsequent loan amount by selling the Property.
Warranty Deed: This deed signifies the legal document with enhanced security to the buyer, protecting from all other claims. If any issue arises, the buyer can claim from the Seller and compensate respectively.
Quitclaim Deed: This deed signifies the change in ownership rights to the Seller without warranties, thus quitting their claim for the Property.
Also Read: What is the RERA Act 2016?
How to Obtain/Register a Title Deed?
As a future Property owner, you must understand the process for registering a title deed in India. Here are the steps to help you obtain a Title Deed from government authorities.
- Start by preparing and verifying legal documentation: This step is necessary to avoid future obligations. Thus, no third party can claim any rights on a specific piece of land.
- Paying the necessary fees: In India, most states charge 5% to 7% of total property value as stamp duty and 1% as registration charges.
And, the subsequent submission of the paperwork for the registration of the document to the sub-registrar office.
Ultimately, you get the legal Title deed or registry of Property in your name. This legal document signifies your ownership rights to the specific piece of land.
Common Issues and Disputes
There are several common issues and disputes associated with real Estate in India.
Title Disputes
Title Disputes are the most significant type of property dispute prevalent in India. Forged documents, errors in property registry records, and fraud transfers are the common reasons that will result in multiple ownership for a single property, leading to conflicts and legal tussles.
Here, the Transfer of Property Act and Registration Act are crucial in solving property deeds.
Inherited/Will Property Issues
These property disputes arise when there are multiple heirs to the specified piece of land or disagreements between family members about who claims ownership of their inherited land. There are several property laws that offer solutions based on evidence, and a written property will historical record.
Landlord-Tenant Issues
Another common issue in India involves landlords and tenants, such as rent overdue or defaults, damage to Property, unauthorized acquisition, and the eviction process.
There are specific Rent Control Acts in each state that offer rights to landlords and owners for solving these disputes correctly.
Importance of Title Deeds in Real Estate Transactions
Title Deeds primarily give individuals the rightful ownership of their lands. These documents are quite a handful, especially in sales and future transfers. You can seamlessly sell the land to any person in exchange for money and transfer the sale deed for future use.
These title deeds will ease your mortgage procedure if all the documents are precisely done. And you can take subsequent loans to make a successful living on any specific piece of land.
Local laws and regulations can be intricate in keeping with historical changes. So, you must follow all the specific guidelines and procedures in obtaining title deeds precisely to avoid any future entanglements with the authorities.
Conclusion
Title Deeds are essential documents that connect your rights to specified property ownership and its future use. These title deeds are legally bound documents that ensure clarity and make you a legitimate land owner.
Multiple types of Title Deeds are issued in India, such as Sales deeds, Gift deeds, Mortgage deeds, Quitclaim, etc. Each serves its specific purpose and follows local laws to add a claim to that property rights.
Obtaining a Title deed requires you to prepare documents precisely, pay the local government fees, verify them, and submit them to the local sub-registrar office. Property disputes emerge when there are title defects, multiple owners, and third-party involvement in that land ownership.
Individuals must possess the legal papers for Property Sales and transfers for any successful real estate transaction. Then, owners must get them verified by Real Estate professionals to avoid any future issues.
FAQs
Q1. What is the meaning of a Title Deed?
Ans: A title deed is a legally bound document that signifies the ownership and property rights of a specific piece of land to an Individual name.
Q2. What are the different types of Title Deeds prevalent in India?
Ans: Several types of deeds are available in India for specific purposes. Sale deeds, Gift Deeds, Warranty deeds, Mortgage deeds, Quitclaim deeds, etc.
Q3. What are the common disputes and issues that emerge with Property ownership in India?
Ans: The most common disputes associated with Property are multiple owners, forged documents, Landlord-tenant issues, Title deed disputes, Inherited property issues, and buyer & builder issues.
Q4. Can Title Deed help in obtaining loans or Mortgages?
Ans: Yes, with correct legal documentation and Title Deed, owners or future buyers can borrow property loans to acquire the land for future use.
