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N.C.S. RAGHAVAN
ARVIND RAGHAVAN
Settlement of house
Question: I have a house in Gangenahalli Extn in my name and have settled the payment through a Central Government home loan. Now I want to transfer the property to my wife and three children. In this connection I had read the article ‘Transfer of property’ in The Hindu PropertyPlus dated April 7, 2007, by Gopinatha Rao. It contained details on ‘Will’ and ‘settlement deed.’ The settlement deed, the author said, works out fine as it is financially viable.
Please advise me on how to go about the entire procedure as I have no idea how to flag off the formalities required, to make the settlement a peaceful one.
C. Narayana
318, 6th A Main,
HRBR Layout,
II Block
Bangalore.
Our legal experts respond: It is presumed that you want the ownership of the house passed on to your wife and children only on or after your death. In such an event, the only legal document that can be prepared is a “will.” The following legal implications of a will have to be understood:
The will comes into effect only after your death.
You can revoke the will any number of times and there is no finality about it even when you make the first will now.
Subject to the aforesaid restrictions, you can make out a will and get it registered. There is no stamp duty payable on such a will. However, a nominal registration fee of Rs.200 is to be paid.
The will has be registered in Book–III maintained by the registration authorities. Such a document is not available to the public and will be treated as a private document only.
A will duly made and registered can be absolutely safe from your point of view and by registration of the same, it can be made safe and secure for your wife and children. However, if you want to make any changes, you are legally entitled to do so by amending the will or by making a new will.
If you wish to give the property to your wife and children through a deed of settlement, such a deed will be considered as a gift deed and stamp duty of Rs.1,150 per person and registration fee of Rs.500 per person shall become payable.
The settlement will come into effect immediately on or any date specified in the deed. However, the option of a settlement can be exercised only if you are prepared to divest yourself of all your rights over the property in question during your lifetime itself.
Documents in second-sale flat
Question: What are the documents that need to be obtained from the owner of a flat in a second sale?
I will be buying a house in Malleswaram and there has been one previous owner. I want to make sure I don’t miss anything.
Suryanarayan,
Magadi Road
Our legal experts respond: Since you are purchasing a flat, we presume that the predecessor in title would have purchased the same directly from the builder.
Further, since the property proposed to be purchased is situated in Malleswaram, it now comes under the jurisdiction of Bruhat Bangalore Mahanagara Palike (BBMP) (formerly Bangalore Mahanagara Palike).
Keeping this in mind, you should obtain the following documents from the present owner to verify his clear and marketable title to the flat:
• The sale deed by means of which the present owner purchased the flat from the builder.
• Copy of the plan sanction obtained by the builder from the Bangalore Mahanagara Palike (BMP) for the construction of the residential apartment building.
• Copy of the Commencement Certificate obtained by the builder from the BMP for the construction of the residential apartment building.
Occupancy certificate
• Copy of the Occupancy Certificate obtained by the builder from the BMP certifying completion of construction of the building after compounding deviations, if any.
• Copy of the tax assessment made by the authority on every flat in the building and allotting sub-khatha numbers to each of them.
• Encumbrance Certificate in Form No.15 for the last 30 years at least for the entire land on which the building has been constructed.
• Encumbrance Certificate in Form No.15 in respect of the flat from the date of its purchase by the present owner up-to-date.
• Khatha Certificate in respect of the flat issued by the BMP.
• Khatha Extract in respect of the flat issued by the BMP.
• Special Notice issued by the BMP assessing and demanding payment of municipal taxes in respect of the flat.
• Latest tax-paid receipt in respect of the flat.
• Copy of the receipt evidencing payment of electricity and water deposit in respect of the flat.
• Copy of the no-dues certificate from the association which has been formed for the maintenance and upkeep of all common areas, infrastructure and amenities in the building confirming that there are no dues towards maintenance charges payable in respect of the concerned flat as on date.
• Copy of the Deed of Declaration, if any, executed and registered by all the apartment owners under the provisions of the Karnataka Apartment Ownership Act, 1972.
Apart from the documents mentioned above, the original title documents should be verified before any advance could be made with regard to purchase of the flat.
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