1. Execution of a Legally Binding Sale Agreement
The process of land ownership transfer begins with the drafting and signing of a Sale Agreement between the buyer and seller. This document outlines:
- The terms and conditions of the sale.
- Sale consideration (price).
- Time frame for execution.
- Obligations of both parties.
This agreement is usually made on a non-judicial stamp paper and signed by both parties in the presence of witnesses. It serves as the preliminary contract, not the final transfer document.
2. Verification of Title and Property Documents
Before executing the final deed, the buyer or their legal representative performs a title verification process to confirm:
- Authenticity of the seller’s ownership.
- Absence of encumbrances or legal disputes.
- Compliance with zoning, land use, and taxation laws.
This step is essential to establish that the land can be lawfully transferred and is free from litigation, mortgages, or government acquisitions.
3. Preparation and Execution of the Sale Deed
The core legal instrument through which land ownership is transferred is the Sale Deed. This document includes:
- Full details of buyer and seller.
- Legal description of the property.
- Transfer of rights, interest, and title.
- Payment confirmation and possession clause.
The Sale Deed must be executed (signed) by the parties involved and witnessed by at least two individuals.
4. Stamp Duty Payment
Before registration, the buyer is required to pay Stamp Duty as prescribed by the state government. The amount varies depending on:
- Property value.
- Location (urban/rural).
- Purpose (residential/commercial/industrial).
Stamp Duty is a legal tax on property transactions and is essential for the Sale Deed to be valid in law.
5. Registration at the Sub-Registrar’s Office
The executed Sale Deed must be registered under the Indian Registration Act, 1908 (or local jurisdictional laws in other countries). Registration involves:
- Presenting the Sale Deed to the local Sub-Registrar.
- Verification of identities via ID proof and biometrics.
- Payment of registration fees.
- Capturing photographs and thumb impressions.
Once registered, the buyer’s name is officially recorded as the new landowner in government records.
6. Mutation of Land Records
Post-registration, the buyer must apply for mutation of land records in the revenue department. Mutation reflects the change of ownership in local government and revenue records.
- A new Khata/Patta/RTC (depending on the state) is issued in the buyer’s name.
- The buyer becomes liable for paying property tax and other statutory dues.
Mutation does not confer ownership but is essential for property tax and future sale transactions.
7. Possession and Handing Over of Property
Legal ownership is followed by the physical possession of the land. The seller hands over:
- Access to the site.
- Keys (if any structures exist).
- Original property documents.
A Possession Letter or acknowledgment may also be issued to mark the final transfer.
