(Advocates, Property advocates in Bangalore, Property lawyers in Bangalore)
The transfer
of immovable property by way of sales, gift, will, releases etc. presupposes
that documents to the title of transferred immovable property are delivered to
the transferee on completion of process.This is statutory obligation.Section
No.55(3) of Transfer of Property Act, casts this responsibility on the seller.
But the section has a proviso that in case where only a part of the property is
sold and the seller retains a part of the property the seller is entitled to retain the original documents, and copies of such documents are delivered to
the purchaser.
In case,
where the property is transferred to different persons, in different lots, the
transferee of greatest portion is entitled to hold the documents of title and
others are provided with copies of such documents.
In the
circumstances dealt above, the persons holding the documents either the seller
or one who hold the greatest portion has some responsibilities. He has to keep the documents in safe custody and in good condition.He has to make available
the documents for inspection to other buyers, and also furnish the true copies
of such documents; extract from such documents, whenever required.But the cost
has to be met by the buyer who needs such inspection or copies, extracts.Those
responsibilities are required to be recorded properly.
The
document, which records such obligations of safe keeping the documents;
producing them for inspection, providing copies, extracts is called "Deed of convenant for production of documents." The deed of transfer like sale,
gift, will, and release may contain such a convenant by the vendor in favour of
purchaser or a separate deed may also be executed by the vendor in favour of
purchaser.
In case of
the person holding greatest portion, a separate covenant deed about his
obligations becomes necessary. A separate deed in favor of each of other
transferee of other portions or a common deed in favor of all other
transferees jointly may be executed. In the deed of transfer of the greatest
portion or of highest value an explicit convenient, that, the transferee shall
safe keep the documents in good condition, produce for inspection of other
transferee and furnish true copies or extract should be included. Similar
relevant convenant should also be incorporated in deed of transfer of other
transferees.
Generally all the portions of the property are not transferred at the same time, and the
above suggested procedure may not be possible. In such cases, the transferor
should give a convenant of production of documents in each of the deeds of
transfer and it should further provide that if and when the transferor hands
over the documents to any other transferee at a later date he would procure a
similar condition from the such transferee.
Under a
convenant of production of document, the original convenant or remains liable
indefinitely unless a condition provides that he is no more responsible after
he parts with the remaining portion of the property.
Stamp duty:
In case the
condition is included in the deed transfer itself, no separate stamp duty is
payable. If a separate deed is executed, it attracts the stamp duty as that of
an agreement depending upon the stamp duty prescribed by the state.
Registration:
This deed of
convenant does not require the registration, but it is advisable to get it
registered.
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