Property Law: Secure Your Assets

When purchasing an immovable property, registering the sale deed is mandatory to get ownership rights. It is also crucial to know that as per Section 269SS of the Income Tax Act, you cannot pay more than ₹20,000 in cash. Any cash payment exceeding this limit will be reported to the Income Tax authorities.

Can you purchase property from a minor? I explain the legal process, which requires the minor's natural guardian (the mother, in this case) to obtain a 'permission to sell' order from the court. I also highlight that such a contract is voidable, meaning the minor can challenge the sale deed within three years of turning 18.

A property acquired through a Will has practical limitations. Banks are often reluctant to grant loans against such properties because a Will can be challenged in court. I explain why banks prefer a Relinquishment Deed from other legal heirs, as it provides a clear title and minimizes litigation risk.

Once a Relinquishment Deed is registered, it cannot be cancelled at the sub-registrar's office like a Will or Power of Attorney. I explain that you must approach the court within a three-year limitation period to revoke it, and only on specific grounds like fraud, coercion, or mistake.

Gifting an immovable property in Delhi involves paying a significant stamp duty, which was revised recently. I break down the new stamp duty rates, which are based on the property's circle rate and vary for male and female recipients. For example, for a property above ₹25 lakhs, the rate is 5% for women and 7% for men, plus a 1% registration fee.

If you live in Delhi but own property outside the state that you wish to sell or gift, you can execute a Special Power of Attorney (SPA). I explain the process of registering an SPA in Delhi, the costs involved, and why a General Power of Attorney is not valid for property matters. The consideration amount must be credited to your account.

The arbitration and jurisdiction clauses in a rent agreement are extremely important. I share a case where I successfully got a civil suit against my client dismissed because the rent agreement explicitly mentioned an arbitration clause. This forced the landlord to initiate arbitration proceedings instead of a civil suit.

Under Muslim law, a person can only bequeath up to one-third of their immovable property through a Will (Wasiyyat). To give more than one-third, a No Objection Certificate (NOC) is required from all other legal heirs. I also clarify that this rule does not apply if the marriage was registered under the Special Marriage Act.

If a person is in judicial custody and needs to sell, gift, or mortgage their immovable property, they don't need to visit the sub-registrar's office. I explain the provision under Section 38 of the Indian Registration Act, where a commission can be sent to the jail to execute the documents after obtaining permission from the jail superintendent.