Indian real estate has an array of phrases or terms that are widely prevalent and must be clearly understood to avoid troubles later. Equipping yourself with basic knowledge of such terms can make the process of buying or selling a property simpler. Among the several popular jargons, the title deed and title price are the most popular terms that customers need to be familiar with.
Vineet Goyal, Jt. Managing Director, Kohinoor Group, shares, “In Indian real estate, giving away land rights means giving away the title. When land is purchased, it is important for the buyer to have a Title Deed in place. This deed safeguards the right of the new owner on the purchased property."
What is Title price?
The original price at which the seller sells the property to the buyer is known as Title Price. However, this does not include government charges or taxes. The cost of land, in this case, means the title price.
Raksha Ramaiah, Director, MS Ramaiah Developers, shares, "As a general thought, while purchasing a property, one must be mindful of the stamp duty and property registration charge as well, which increases the total expense on the property. These charges vary from State to State. Generally, both property registration fee and stamp duty can cost around 7-12 percent of the property cost. Further, buyers should also be prepared to pay cess and a nominal surcharge."
What is Title deed?
The title deed of a property is an ownership document which reflects the legal rights of the land owner. It gives all the details about the property and its ownership records. In India, land registrar offices are authorised to certify such deeds which underlines their importance.
Title deed registration charges
When buying a real estate property in India, in addition to the cost of the property, the buyer must also consider the amount they will have to pay to get their property registered. This price differs from the type of property you are trying to register, i.e. commercial or residential. The title registration charges for commercial properties are higher than residential properties.
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How to make changes to a title deed?
Any changes to a title deed can only be made at the local land registrar's office. It will require a stamp of authority and supporting documents.
What are the benefits of a title deed?
Title deeds are legal ownership documents which carry a lot of weight. They can be used to avail loans, contest a dispute, or conduct succession planning. Any sale or purchase of a property will be carried over title deeds. Title deeds can also be used to create gift instruments for gifting real estate.
Sale deed vs Title deed
Although used interchangeably, a sale deed and a title deed are two different terms. A sale deed is a document that results in the creation of a title deed. As the buyer and seller agree to carry out a transaction, they have to formalise the transaction in order to prove that the change in asset ownership has taken place. Thus, a sale deed is prepared with complete details of the property and the buyer and seller. Further, this deed must be registered according to the Registration Act 1908. As soon as the sale deed is registered, it becomes legal proof that the property title has been transferred to the buyer. In this capacity, the sale deed becomes a title deed.
There are a number of ways by which the legal ownership of a property can be proved. However, title deeds hold high importance with legal backing. Thus, it is important that whenever a real estate transaction is conducted, it is completed through a properly documented title deed with a clear title price.
