CONVEYANCING AN OVERVIEW

1. 2. 3. (a) (b) (c) (d) (1) (i) Conveyancing in general: Importance of conveyancing for Chartered Advocates !olicitors and "a#$%ractitioners& Accountants

Important points to 'e considered (hile drafting a document: Purpose of preparing the document : Date of the document: Place where document is to be executed: Parties to the document: Vendor: ndi!idual

"hen Vendor is a #indu "hen the Vendor is a $uslim "hen the Vendor is a Parsee "hen the Vendor is a %unatic person & Permission of 'ourt. "hen Vendor is a $inor it is necessar( that the permission of the competent court sanctioning the sale of the minor)s propert(* minor)s interest in the propert( is obtained. (ii) #.+.,.: 'omplete famil( tree with the names and address and age of all the members should be obtained. -he reasons for sale & legal necessit( & benefit of the estate should be ascertained. (iii) 'ompan(: $emorandum and .rticles of association & /ele!ant resolution & .uthorit( to specific director*officer & Power of .ttorne( & 'ommon 0eal. (i!) Partnership ,irm : 1ature of business of the partnership firm & 'op( of Partnership Deed & 'ertified 2xtract of /egister of ,irms & "hether it is necessar( to get the document executed b( all the partners of the firm or to get the document executed b( onl( one of the partner on behalf of the firm. (!) Public 'haritable -rust : Pro!isions of -rust Deed*Deed of 0ettlement (Directions of 0ettlor) & "hether the trustees ha!e the necessar( power for sale & Permission of 'harit( 'ommissioner for sale*alienation of the propert( owned b( a public -rust & 'ertified copies of the resolutions of the board of trustees & 0pecific authorit( gi!en to an( particular -rustee.
1

(!i) Pri!ate -rust: Pro!isions of -rust Deed*Deed of 0ettlement (Directions of 0ettlor) & "hether the trustees ha!e the necessar( power for sale & 'ertified copies of the resolutions of the board of trustees & 0pecific authorit( gi!en to an( particular -rustee. f possible the consent of the beneficiaries should be obtained. f the trustees do not ha!e the power for sale gi!en under the trust deed3 the con!e(ance b( the trustees will still be proper3 pro!ided all the beneficiaries3 being sui 4uris3 4oin in the con!e(ance as a part( or separatel( confirming such con!e(ance. (!i) 'o&operati!e 0ociet( : 5(e&laws of societ( & Pro!isions of 'o& operati!e 0ocieties .ct & 'ertified copies of the concerned resolutions & n case of alienation of immo!eable propert( owned b( a societ( it is essential to obtain the consent of the members in the general bod( meetings b( passing the appropriate resolution. & .uthorit( to 6ffice bearers & 'ommon 0eal. (2)Purchaser: ( n case of agricultural land purchaser must be an agriculturist & 0ale permission under -enanc( .ct) & f necessar(3 to see that the purchaser complies with the conditions which enable him to purchase* entitle him for allotment. (,or e.g. .llotment of a flat in #ousing 5oard* ' D'6)s building & income group & resident of the state for certain (ears etc.) (e) /ecitals & mportance of recitals & /ecitals in the document more than 27 (ears old. 'are should be ta8en to see that recitals should contain a statement onl( of material facts. .s far as possible recitals should be in a chronological order -(pes of /ecitals &&&&&&&&&&&&&&&&&&&&&&&&&& 9 &&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& 9 9 1arrati!e ntroductor( 9 &&&&&&&&&&&&&&&&&&&&&&&&&&& 9 9 :eneral Particular -he ob4ect of the narrati!e recitals is to set out the facts and instruments so as to show the nature of the interest intended to be dealt with b( the document. -he ob4ect of introductor( recitals is to explain the moti!e of the operati!e parts for the document i.e. what is intended to be done b( the parties under the instrument. :eneral /ecitals: Particular /ecitals:
2

ntroductor( /ecitals: -he ob4ect of introductor( recitals is to lin8 and connect the narrati!e with the operati!e parts of the instrument and the( are framed in such a wa( as to explain what is intended to be done b( the document. nterpretation and 'onstruction: t should be noted that in the e!ent of there being an( discrepanc( between the operati!e parts of a deed and its recitals3 the operati!e parts pre!ail unless the( are ambignous in which case the recitals ma( be referred for the purpose of interpretation and construction. /ecitals in the document more than 27 (ears old : (f) Proper description of the propert(3 if an( referred in the document (0ur!e( 1o.3 #issa 1o.3 'it( 0ur!e( 1o.3 -.P.0. 1o.3 6riginal Plot 1o.3 ,inal Plot 1o. 3 .rea & # & .& P3 .cre and :unthas3 ;;;;;; s<. (ards3 ;;;;;;; s<.mtrs. & 5oundaries & /oads3 $unicipal "ard. Proper description of the propert( should be gi!en in /ecitals3 operati!e part and schedule of the document.

In case of flats)shops etc* : ,lat*shop 1o.3 1ame of the building3 =ear of construction3 1o. of floors in the building3 'it( 0ur!e( 1o. (g) Consideration $ +ode of payment) %ayment schedule 'onsideration based on area & >oint sur!e( of propert( & increase or decrease in total consideration based on 4oint sur!e( & consideration based on ,.0. . & proposed plans & actual ,.0. . based on sanctioned plans & increase or decrease in total consideration & n case on premises whether consideration is based on carpet area or built&up area or super built&up area. mportant terms and conditions (i) (ii) (iii) (i!) (!) (!i) (i) possession 6utgoings3 taxes etc. & apportionment thereof 0ale of propert(*premises free from all encumbrances & mar8etable title. Various permissions & 1... Permission3 +.%.'. 6rder3 Permission of 0ociet(. 0anction of plans Vendors 'ertificate under 0ec. 237. of the ncome -ax .ct.

(h)

Attestation : t is essential that the document is properl( attested as re<uired under the law. -he ob4ect of .ttestation is to pro!ide protection against fraud and undue influence. t is ad!isable to get the
3

document attested b( the .d!ocate*0olicitor of the part( when the parties are represented b( .d!ocate*0olicitor. (1) (2) (3) %ease : %ease must be attested b( 2 witnesses. $ortgage : $ortgage must be attested b( 2 witnesses. "ill : "ill must be attested b( 2 witnesses.

.ttesting witness : t is necessar( that the witness should ha!e put his signature amino attestandi3 that is3 for the purpose of attesting that he has seen the executants sign or has recei!ed from him a personal ac8nowledgement of his signature. f a person puts his signature on the document for some other purpose3 e.g. as an identifier of a registering officer3 he is not an attesting witness. (M.L. Abdul Jabbar v/s. H. Venkata Sastri AIR 1969 SC 114 !. (4) !ignature : 'are must be ta8en to see that the parties sign the document properl(. & ?arta and $anager of #.+.,. must sign as ?arta and $anager of #.+.,. & partner must sign as a partner of the firm. & 'ompan( & 'ommon 0eal. !tamp ,uty : Pa(ment of proper stamp dut( & the stamp dut( to be born and paid b( which part( & reference of pa(ment of full stamp dut( on the principal document in the other anciliar( documents. Registration: Documents which are re<uired to be registered compulsoril( must be registered. t is ad!isable to register e!en those documents the registration of which is not compulsor(. & 'larit( about who should bear and pa( the registration charges. Consent of any other party : +ap %lan: Earnest +oney $ %art Consideration : 6ther in<uiries (a) (b) (c) (d) (e) (f) (g) (h) (i) (4) A. nterests of the third parties 1ame in which the propert( stands -enure Persons in possessions -enants 2asement or /estricti!e 'o!enants Proceedings in 'ourt 1otice from public bodies 0et bac8 2ncumbrances

(8)

(l)

(m) (n) (o) @.

!tudy of relevant documents -,ocuments of title.

@

B.

!tudy of relevant la(s (a) (b) (c) -ransfer of Propert( .ct : (/ights and duties of parties) Personal %aws of the parties & #indu %aw & $uslim %aw3 etc. 0tamp .ct : 5omba( 0tamp .ct3 ndian 0tamp .ct & 0tamp dut( applicable on !arious documents & $ar8et !alue & /efund & mpounding of documents etc. /egistration .ct : $aharashtra 6wnership ,lats .ct : (0ec.@ & Promoter before accepting ad!ance pa(ment or deposit to enter into agreement and agreement to be registered. +rban %and 'eiling .ct : 0ec.B(i) & /eturn3 0ec.C(@) 6rder & 0ec.273 0ec. 2B3 0ec.2D3 & /estriction on 0ale*-ransfer of premises constructed on surplus !acant land under the scheme for wea8er section. $aharashtra %and /e!enue 'ode : 5omba( -enanc( and .gricultural %ands .ct : n case of agricultural land & permission for sale. $aharashtra /egional and -own Planning .ct : (Permission for construction*de!elopment) $aharashtra 'o&operati!e 0ocieties .ct : 'ompanies .ct : ndian Partnership .ct : ndian 'ontract .ct : 0ale of :oods .ct : ndian 0uccession .ct : :uardians .nd "ards .ct : ncome -ax .ct : "ealth -ax .ct : :ift -ax .ct :

(d) (e)

(f)

(g) (h) (i) (4) (8) (l) (m) (n) (o) (p) (<) (r) (s) D.

Consultation (ith other professionals :

A

(a) (b) (c) C. E.

.rchitects 'hartered .ccountants* -ax 'onsultants .d!ocates and 0olicitors !ite visit : (in case of immo!eable properties) !ome ,ocuments : (a) (b) (c) (d) (e) (f) (g) (h) (i) (4) (a) .greement for -ransfer of ,lat in a co&operati!e societ( Partnership Deed "ill ,amil( .rrangement & Deed of Partition Deed of -rust .greement for 0ale of immo!eable propert( .greement for De!elopment Power of .ttorne( Deed of ndemnit( Declaration .:/22$21- ,6/ ,%.- 0.%2*-/.10,2/ 6, ,%.-0 1 . '6&6P2/.- V2 06' 2-=

Re/uirements from the Vendor) "ransferor 1. 2. 3. @. A. B. Ferox 'op( of .greement b( which he has purchased the flat. Ferox 'op( of 0hare 'ertificate. 'op( of the latest bill of maintenance issued b( the 0ociet(. Ferox cop( of the last 2lectricit( bill. 'omplete name G address where the( will be shifting. 1otice of the last .nnual :eneral $eeting with .nnual /eport & if possible.

n<uiries to be made with the 0ociet(

B

1. 2. 3. @.

Procedure for -ransfer necessar(. -ransfer fees pa(able.

whether notice of intention to -ransfer

"hether an( amounts are due and pa(able b( the -ransferor. 0tamp Dut( and /egistration.

Papers and Documents to be prepared : 1. 2. 3. @. A. B. D. C. E. 17. 11. 12. 13. 1@. .greement Power of .ttorne( Declaration Deed of ndemnit( /esignation %etter cum 'o!ering %etter of the -ransferor and -ransferee. -ransfer form. .pplication form b( the -ransferee 1otice of ntention Possession %etter /eceipt for balance pa(ments. Declaration of -ransferor & +%' Declaration of -ransferee & +%' +nderta8ing of -ransferee to use the flat for the purpose for which it is allotted. %etter of -ransfer for 2lectric $eter if an( necessar(.

Documents to be collected from the -ransferor 1. 2. 3. @. A. 6riginal .greement 6riginal 0hare 'ertificate %atest /eceipt for pa(ment of the last maintenance bill of the 0ociet(. n case of an( loan on the flat 1.6.'. from the nstitution gi!ing %oan for sale of the flat. %etter releasing charge of the nstitution on the flat addressed to 0ociet(. ,eed of %artnership

(b)

+sual Partnership 1. 2 3. @. ,irm name "hen will the partnership begin Duration of the partnership&at will or till completion of a particular pro4ect. 1ature of business
D

A. B. D. C. E. 17. 11. 12. 13. 1@. 1A. 1B. 1D.

Place or places of partnership business & ownership of such premises & tenanc( rights n what proportion the capital will be contributed b( the partners & interest on capital & specific precaution to be ta8en when onl( one or some of the partners are ma4or in!estors. :ood will & licence rights etc. %oan from the partners*outsiders & interest on loan. Drawings of partners & interest on drawings 0alar( to partners & wor8ing partners (new scheme of assessment of the firm) n what proportions will profits and losses (including capital profits and losses) be shared H "hether there are an( minors to be admitted to the benefits of the partnership H .ccounting (ear & maintenance of accounts & 0ettlement of accounts 6peration of ban8 account & which partners are authorise to operate ban8 account 'larit( about rights and duties of partners. Death3 retirement or insol!enc( of a partner .rbitration clause

Partnership in case of 5uilders * De!elopers & 'are to protect the interest of the in!esting partner & 6peration of ban8 account & 0igning of agreements for sale of flats3 shops etc. & 0ettlement of accounts upon death3 retirement or insol!enc( of a partner & profit to be ascertained on completion of the pro4ect & 1omination clause & consent of other heirs H Partnership when some of the partners bring in mmo!eable Propert( as their capital in the partnership: & 'omplete description of the propert( (0.1o. #.1o.3 'it( 0ur!e( 1o.3 0<.mtrs.3 re!enue !illage etc.) & map. & 'larit( about the ownership of the propert( & Propert( free from all encumbrances & intention to bring the propert( as capital & !alue of the propert( & credit to the capital account of those partners & genuineness of the firm & & 'onsider the effect if within a short period all the old partners retire and onl( new partners remain . & $inor & 1o liabilities other then those reflected in the balance sheet. (c) Will

& 1ame and address of the -estator (clarit( about the premises if it belongs to somebod( i.e. one of his sons & ,amil( tree & list of properties. & in case of immo!eable propert( whether complete pa(ment is made3 possession ta8en etc.
C

& & & & &

0egal aspects no specific form no stamp dut( can be re!ol!ed at an( time during the life time of the testator .ttestation witnesses & .ttestation of a will of ill person b( a doctor and an ad!ocate.