What is transfer memorandum in Leasehold property?

Q: The Leasehold property sellers need to obtain transfer memorandum. So, What is transfer memorandum? Why is the transfer memorandum necessary? Who will give the transfer memorandum to the seller?

Vikas Modi, Ahmedabad

28th December 2011

Other in Ahmedabad

leasehold

memorandum

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Transfer memorandum is a permission granted by the development authority to the seller of the property allowing to transfer his rights to the buyers. The seller can obtain the a transfer memorandum from the local development authority and it is necessary because the development authority provides land development rights to the developers and sell the residential units for a lease of 99 years. Anyone who buys flat in commercial or residential project will actually own the flat for 99 years and the authority technically remains the first owner. You need to register the property in your name even under leasehold.