In­her­it­ing a prop­erty is not enough, proper trans­fer of its ti­tle in your name is a must

Mint ST - - PERSONAL FINANCE - Ash­wini Ku­mar Sharma ash­[email protected] Will, death cer­tifi­cate Prop­erty pa­pers,

Given the high value of real es­tate as­sets, it is very im­por­tant for le­gal heirs to se­cure the as­set after the death of the per­son in whose name it is reg­is­tered. You need to go through le­gal for­mal­i­ties to ob­tain own­er­ship of a prop­erty. For­mal­i­ties may dif­fer based on the na­ture of the prop­erty, your rights over it, the num­ber of le­gal heirs and oth­ers. Here is how and what to do when you in­herit a prop­erty. per­son can only pass on the prop­erty as per her wish if the prop­erty was self-ac­quired and not in­her­ited. If it was in­her­ited, suc­ces­sion law comes into play.

Prob­lems arise when there is no Will. In such cases, “the first plau­si­ble and most con­ve­nient sit­u­a­tion that can arise is that the le­gal heirs mu­tu­ally de­cide amongst them­selves and dis­trib­ute the shares ac­cord­ingly. The said dis­tri­bu­tion can be re­duced to writ­ing in terms of a fam­ily set­tle­ment which can be sub­se­quently reg­is­tered and the shares be di­vided in such terms,” said Manoj K. Singh, found­ing part­ner, Singh & As­so­ciates, a law firm. Typ­i­cally, in the ab­sence of a Will, ap­pro­pri­ate suc­ces­sion laws come into ef­fect. you need the prop­erty own­er­ship doc­u­ment and the Will, or the Will with pro­bate or suc­ces­sion cer­tifi­cate.

In the ab­sence of a Will, you may also need to pre­pare an af­fi­davit along with a no-ob­jec­tion cer­tifi­cate from other le­gal heirs or their suc­ces­sors. If you have paid any con­sid­er­a­tion (in kind or cash) to any heirs or claimants to ac­quire their share, men­tion that in the trans­fer pa­pers.

The process is not com­plete with the reg­is­tra­tion of doc­u­ments in your name; the next task is to ap­ply for mu­ta­tion of the prop­erty ti­tle. It is done to record the trans­fer of a ti­tle of an im­mov­able prop­erty from one per­son to an­other in land rev­enue records. This is re­quired for the pur­pose of pay­ment of prop­erty taxes, or to trans­fer or ap­ply for util­ity con­nec­tion in the name of the new owner. It also adds ev­i­den­tiary value in re­spect of the ti­tle to the prop­erty. Mu­ta­tion of prop­erty records takes place at the lo­cal com­pe­tent mu­nic­i­pal au­thor­ity of­fice in whose ju­ris­dic­tion the in­her­ited prop­erty is lo­cated. The doc­u­ments re­quired and the fees for mu­ta­tion of a prop­erty dif­fer from state to state.

Re­mem­ber if there is an out­stand­ing home loan against the prop­erty, then you in­herit the loan as well and are re­quired to pay the out­stand­ing amount. How­ever, if the de­ceased owner had a home loan in­sur­ance, the in­surer pays off the out­stand­ing. Once the pay­ment is made, you must col­lect the loan clear­ance cer­tifi­cate from the lender and the orig­i­nal doc­u­ments of the prop­erty that were given to the lender to avail the loan. Mort­gaged prop­erty can be trans­ferred only with the writ­ten con­sent of the lender.

Also, if the prop­erty you in­herit has been let out, you be­come obliged to ad­here to the lease agree­ment signed be­tween the lessee (the pre­de­ces­sor) and the lessor. “If le­gal heirs are de­sirous of con­tin­u­ing the lease, then sim­ply an agree­ment can be ex­e­cuted with the lessee wherein the lessee ac­knowl­edges that by op­er­a­tion of law the le­gal heirs of the de­ceased shall there­after be treated as the new lessor,” said Singh.

If needed, take le­gal help to get the prop­erty ti­tle trans­ferred in your name.

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