We all understand that purchasing a property in this period of inflation is not a simple matter. A person uses all of his hard-earned cash to purchase a home. On the other side, it is not uncommon for people to use their entire lifetime's worth of wages to construct their ideal home.
Dealing in real estate is usually a significant investment. Thus one should constantly take caution and keep certain crucial considerations in mind. While purchasing a property, a small mistake or "greed" on your behalf might quickly wipe out your lifetime earnings. After that, you would be powerless to do anything, even if you wanted to.
People get badly trapped in the concern of saving a little money.
We'll go over some extremely crucial property handling tips with you today that you should constantly keep in mind. In reality, you are required by law to pay the government stamp duty if you purchase real estate. This is because you must first pay the stamp duty before your property can be registered.
The surprising thing is that many individuals who purchase real estate valued at lakhs of rupees have a power of attorney or full payment agreement created for the transaction to avoid paying some stamp duty. However, this is not the case legally. You do not acquire legal property ownership through a power of attorney or a full payment agreement.
Today, we'll explain what a full payment agreement is, what it entails, and what the drawbacks of using one are when purchasing real estate.
What is a full payment agreement?
Many people have an entire payment arrangement formed rather than a formal property record in various parts of the nation. To save it, people obtain the complete payment agreement made for the purchased property, even if stamp duty must be paid for the firm registry of the property. But from a legal standpoint, this is wholly incorrect. The full payment agreement should first and foremost be understood not to grant legal possession of any property.
A full payment agreement does not give legal ownership.
There is one more significant aspect of full payment agreements we should all be aware of. Explain that the full payment agreement is only made after the whole value of a property has been given and that it is only for a specific amount of time. In this case, you cannot acquire property ownership simply by paying the full price. Any property must be registered for its owner to have legal possession.
Only the seller of the property can challenge it in court.
It is common in real estate transactions for persons to simply complete a full payment arrangement and take possession of a property rather than obtaining a selling deed. However, if the property seller later claims it, you can be in trouble.
Additionally, after the death of the property seller, it is common for only his children or other close relatives to claim the property. You could simply have to deal with significant difficulties in such a situation. Such claims are almost always unconvincing in court, and you cannot demonstrate your property ownership rights without a registry. The money you worked so hard to obtain to purchase that property will ultimately be lost.
The registry is very important.
The property purchase law states that you must pay the required stamp duty and register any property you buy instea. Because of this, you must pay stamp duty as soon as you purchase a property to register it. Additionally, it is crucial to have the registration of that property refused after it has been registered.