Tips for NRIs to transfer title of inherited property
It can become a nightmare for an NRI who wants to make a property transaction in India or has to inherit his ancestral property. The property documents along with the the appropriate identification is mandatory while inheriting the ancestral property.
The property inheritance can be an easy process if the documentation and the legal work is done precisely. Adding on to the benefits would be a clearly written or typed “will”. A khata or a patta of the property in municipal records is also mandatory in Karnataka for any property transaction. Check for the similar document in the state you are investing.
Transfer of property title in India:
As mentioned earlier, the process of transferring the title of a property in India can be quite a hassle if the paperwork is not in order. This can even lead to court matters. Also, the absence of a will leads to property disputes. However, the Indian sensitivity prevents heirs from asking for estate documents before the death of parents or the owners. As a result the property transfer might take years together.
The khata is an important document required in Karnataka to transfer the property and in case an individual does not have a khata, he/she can get a duplicate copy of it.
Documents required to transfer the title of inherited property:
Registered Will:
A property Will plays an important role for any property transfer. A will can be registered or unregistered and can be typed or written. A registered will makes it a valid document which can be presented in the court.
Succession certificate:
A succession certificate is important in the absence of a will. The heirs should procure a succession certificate from the court. Important documents like the death certificate of the deceased, the birth certificate of the heirs, copy of the ration card, bank statement of the heirs and others should be submitted to procure a succession certificate. These documents are required to prove that the heir is the rightful owner of the inherited property.
Original purchase deed and registration documents:
It is very important that the heir has the original purchase deed and the registration documents of the property. In most cases, the older properties do not have their original purchase deed, which in case can be substituted with certified copies of the title deed from the jurisdictional registrar’s office.
Encumbrance certificate:
An encumbrance certificate is important to maintain the record and it reflects all the property transactions carried out for the immovable property. The property can be sold, leased, mortgaged, partitioned, gifted or released.
Khata document in Karnataka:
Khata is mandatory in Karnataka for any property transaction. Khata basically is an evidence of who owns and possesses the property concerned. This document records the entry of the property owner details with the municipality/corporation. Details like the property owner’s name, the property type, the property taxes paid/to be paid and more will be recorded in the khata.
However, there is a slight difference between a “khata” and a property registration document. The property registration document records the sale/purchase of the property from one owner to another. The khata on the other hand records the annual property taxes paid. The khata changes with the municipal corporation with the registration of the property being changed. Due to the lack of automatic process, the khata should be transferred separately. You should check for the similar document in the state you are investing.
How to make the transfer of title effective?
A process of mutation of revenue records can make the transfer of title an effective process. Mutation of revenue records simply means the updation of the new owner’s details in the books of the concerned development authority, the municipal corporation or the village panchayat.
Related Real Estate Articles:
Guidelines for NRIs to sell inherited property in India
Guidelines to transfer property title
Image courtesy of njaj at FreeDigitalPhotos.net
