Are you thinking about transferring your property to Children? Then, let us tell you that transferring of a property title is not an easy thing especially in India. As, one needs to produce various legal and other documents in order to proof relationship, income, and the property one wishes to transfer.
Therefore you as a parent must know things which are necessary to consider for transferring property in blood relation like that to a Son or a Daughter. This includes all types of properties such as Apartment, Independent Villa, Bungalows, and even a penthouse.
Checklist of things essential for entitling property to your children:
- Get Property Valuation Done:
One must know the worth of his or her property while transferring it to the children. Also, this helps you to manage other financial funds as the property itself comes with security. This allows the person to balance financial crisis as one can avail mortgage loan or other debt against the property when needed. In fact, a person can also have a sheer understanding of the highs and lows that affect the capital gains tax event.
- Hire a Lawyer:
A person must hire a lawyer as he/ she is the most knowledgeable person when it comes to legal and lawful activity. A lawyer helps you fulfill all the necessary forms and make sure you complete all formalities in order to transfer or gift the property to your children. Today, the digitalization has changed many things and people can now apply for transfer of property to someone by making an online application. In this case, one must hire an advocate to complete the process accurately and in a timely manner.
- Quit Claim Deed:
This form is a clear declaration that you as an individual is ready to transfer the property title to some other person. This declaration form is known as Quit Claim Deed which also states that from this particular date you transfer the property to children and does not possess any right on the property.
- Get a warranty deed:
Like the above mentioned one, this Warranty deed is a must from the point of view of the person who is inheriting the property. This document states that he or she is the sole owner of the property from a particular date. Therefore, the previous owner’s right on the property stands null and void after the signing of this agreement.
- Mention Property Description:
The transfer of title agreement must include precise location, unit size, a landmark near the property and the Country name where the property is located. This lowers the chance of redundancy and makes sure that no one can claim to have right on the property which belonged to you prior transferring it to the children.
- Showcase Exemptions:
The transferring of property benefits both the giver and the receiver as both of them enjoy exemption from the tax. But this condition is only applicable when a property is transferred between parent and children, in-laws to next generation and from parent to step-children too.
These are the essential things that one must consider and work on while transferring property to their children or the next generation.