Deed Writing & Documentation
The Various types of deed and documents and their brief meaning are outlined hereafter.
'Sale' u/s 54 of Transfer of Property Act, 1882 has been defined as transfer of ownership in exchange for a price paid or promised or part paid and part promised. Documents in case of sale/purchase depend upon law applicable and type of the property such as lease hold, Free hold, Lal Dora etc.
Under Delhi Stamp (Prevention of Under Valuation of Instruments) Rules, 2007 it is necessary to take circle rates into consideration for properties within territorial jurisdiction of NCT of Delhi w.e.f 18/07/2007
Sale Deed is a document which is registered for sale of property in case of freehold properties. However, it may be registered in certain leasehold properties also where there is such provision. It grants clear title & complete ownership to the buyer/purchaser. It is compulsorily registered when transaction is for consideration between two persons.
Conveyance Deed technically means any document through which a property is transferred from one person to another. However, in common usage it is a document which is registered when title of property is transferred from government to a person. It grants freehold status to the property.
AGREEMENT TO SELL
Agreement to Sell or Deed of Agreement is registered for sale of leasehold property or when there is a promise to transfer in future. As the name specifies, Agreement to Sell is registered when the seller is not the absolute owner of the property & agrees to sell the property as the title vests with the government. Thus, it is agreed between the parties that whenever, in future, the clear title shall be given by the government, the concerned property shall be sold to the intended purchaser.
POWER OF ATTORNEY
Power of Attorney is a document which grants the general/specific powers to the person in whose favor the document is executed. It can be related to a specific property or specific acts or both. A Power of Attorney having specifically few powers is called Special Power of Attorney (SPA) and that having generally all the powers is called the General Power of Attorney (GPA). In Both cases, attorney Holder is entitled to act on behalf of the Principal owner.
Will means the declaration of the intention of a testator with respect to his property which he desires to be carried in to effect after his death. Though the registration of Will is not mandatory but a registered Will is the preferable mode to transfer your property and assets as per your wish. You can specify the division of your property and assets as per your wish.
Relinquishment Deed is a document whereby a person releases his share or claim in a property. When the owner of a property dies and his/her legal heirs agree to relinquish (leave) their respective share of the concerned property in favor of one or more of the legal heirs, this document is made.
When a document has been registered in the office of the Sub-Registrar and a mistake has been found in the same after it has been registered, it can be corrected only through Rectification Deed duly registered in the office of Sub-Registrar.
A Lease of immoveable property is a transfer of a right to enjoy such property, made for a certain time, or in perpetuity, in consideration of a price. It is compulsory to register Lease Deed when the monthly rent of the property is more than Rs. 3,500/- per month or lease is for a period more than one year.
Gift Deed is safest and surest way to transfer your property in your lifetime. It assures clear title to the donee(to whom gift is made) without interference of other persons.
Perpetual Lease is registered when the property is allotted by the government to a person. It grants leasehold title to the owner. However, it can be registered by any person if he wishes to give his property on lease in perpetuity.
Partition Deed is registered for partition of the property. Partition is mutually agreed between the owners of the property and their respective proportions are outlined and specified in the Partition Deed so as to divide the property.
Adoption Deed is required for adopting a child. It is executed by natural parents of the child in favor of adopting parents. Rules differ according to the religion of the parents. In respect of the Hindus, it is an essential part of the process of adoption as per the Act and rules in this regard.
A trust is an obligation annexed to the ownership of the property, and arising out of a confidence reposed in and accepted by the owner, or declared and accepted by him for the benefit of another, or of another and the owner. Trust Deed is registered for creating a trust. It is registered through Settlor/Author. The Settlor may appoint any number of Trustees to look after the Trust and its activities. There are Public charitable trusts and Private Trusts for the benefit of few but the essence lies that the confidence is reposed for the benefit of others.
CANCELLATION OF DOCUMENT
Some registered documents can be cancelled at the wish of the executor of the document such as Power of Attorney and Will through a Cancellation or Revocation Deed.
Partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all. Persons who have entered into partnership with one another are called individually 'partners' and collectively a 'Firm' and the name under which their business is carried on is called the firm name. Partnership Deed is registered for creating Partnership Firm. It needs minimum two partners.
Assignment Deed in general can be registered for assignment of any property. It is commonly used for transfer of a liability/debt. The purchaser in this case steps into the shoes of the transferor and has all such rights which the transferor has. The purchaser is entitled to amount due under a loan agreement and all such legal remedies to which the transferor was entitled. It can also be registered when a leased property is sold to a third party.
Release is a consequential method of transfer of interest in some immoveable property. It amounts to the same effect in the form of relinquishment of interest of a person in some immoveable property. In case of several persons having interest in the same property any one or more of them may release, relinquish, surrender, transfer and convey his share or interest in favor of others.
Under India Contract Act, section 124 provides that Indemnity is a specific contract, a purpose whereof is to extend promise to save other party from loss caused to him from the acts of the one executing the bond.