Ownership means a person has a right over a property, and owns it. An owner will have the right of possession, right to its use, right of way, right to transfer it and the right to earn rent from the property.
An owner can transfer his property by gifting or selling it. A sale deed, or any document through which the ownership rights are transferred, is a document that gives evidence of an individual's ownership of a property. Rights in property can be transferred only on execution and registration of a sale deed in favour of the buyer.
A conveyance deed is executed to transfer title from one person to another. Generally, an owner can transfer his property unless there is a legal restriction barring such transfer. Under the law, any person who owns a property and is competent to contract can transfer it in favour of another. If the owner gives another individual a power of attorney (POA), that person can sell it under this authority. A POA gives another person the power to act on behalf of the owner. However, if the POA only grants a person the authority to manage the property, he cannot sell it.
Agreement to sell precedes execution of a sale deed. The subsequent sale deed is based on the agreement to sell. The agreement is signed and executed by the seller and buyer on a non-judicial stamp paper. As such, it has legal value and can be produced as evidence. Agreement to sell is the base document on which the conveyance deed is drafted. Every document of transfer of property by way of sale would be preceded by an agreement to sell. The agreement to sell is also in writing.
Any instrument indicating transfer of property must be registered. The sale deed and other relevant documents have to be stamped and registered at the subregistrar's office having jurisdiction over the property. The purpose of registration is to prevent fraud and provide security. It also ensures that every person dealing with property, where such dealings require registration, may rely with confidence on the statements contained in the registered document as a complete account of all transactions by which his title may be affected.
A transfer of title in real estate is not valid if the sale deed is not registered. Registration in the name of the seller by the person transferring property is crucial for the transfer of clear title in favour of the new owner. Registration is to be done after payment of appropriate stamp duty, as prevalent in the State.
Once purchased, the property should be mutated in the name of the purchaser. Mutation is not a legal title given to the new owner. It basically means rectification in the records of the municipal authorities (in case of urban properties) and local revenue officers (in case of other properties), replacing the name of the owner with that of the new owner. The new owner, in whose favour the title and other rights pass on, must apply to the local municipal authorities for mutation.
Mutation of property is recorded on the presentation of registered documents showing evidence of transfer of property. Mutation of property in the municipal or revenue records is mainly for the purpose of payment of property taxes.
