Conveyancing and Real Estate Transactions

 

Conveyancing and Real Estate Transactions

Conveyancing can be roughly described as the transfer of property ownership from one person or entity to another. It typically starts with understanding the client’s issues and concerns, advising them accordingly, and suitably structuring the transaction. The second step usually involves ensuring that the owner has a lawful title and that there are no liens, easements, or legal impediments in transferring or acquiring the property. This is also referred to as Due Diligence or a Title Search. Next, the requisite contract is drafted to secure the party’s interests, usually followed by negotiations and deliberations between the parties when required. Once the terms of the contracts are finalised, the document needs to be executed and registered, thus concluding the transfer.

Real Estate Advisory

Real estate advisory can be summarised as assisting and handholding in scrutinising the legal documents about the property and providing legal advice and practical inputs. This is crucial for making real estate dealings more secure, prompt, diligent, and profitable.

Due Diligence

Due diligence is technically a detailed analysis or investigation of the nature of the parties’ rights in real estate property. For a developed unit/structure, it may mean scrutinising title and ownership, verifying legal documents, and ensuring legal and regulatory compliances have been carried out. The due diligence of land requires a comprehensive investigation and assessment of the chain of ownership, the tenure of the land, encumbrances, mortgages, third-party rights, rights of legal heirs, zoning, etc. Due diligence clarifies the rights of the holder, offers negotiation leverage, helps make informed decisions, and most importantly, provides peace of mind.

Sale Deeds/Transfer Deeds

A Sale Deed/Transfer Deed is a legal document that transfers ownership from the seller to the buyer, whether named Sale Deed, Deed of Assignment, Deed of Transfer, or Conveyance Deed. Once such a Transfer Deed is executed and registered, the transfer of ownership becomes legally binding. It serves as conclusive evidence of the sale and recourse for the parties in case of breaches and disputes. Hence, it needs to be carefully crafted.

Lease Deed

In layman’s terms, a lease is a grant of the right to use, occupy, and possess the property or a part thereof for a stipulated period in exchange for lease rent. A comprehensive lease deed may provide legal protection, regular and secure lease rent, and compliance with legal requirements and regulations by the lessee. On the other hand, it guarantees the right to use the property for a specific period without.

Leave and License

A leave and license agreement is a legal contract between a licensor and a licensee that grants the licensee permission (without granting any rights in the property) to use and occupy the property for a specific period and purpose in exchange for a pre-determined fee. The arrangement is predominantly guided by the terms and obligations recorded in the Leave and License agreement, hence its utmost importance.

Release Deed

A release deed is an instrument used to relinquish a person’s interest, claim, and rights in the property to another. One may execute a release deed to waive their rights, interests, or title in a property, be it ownership rights, easementary rights, or otherwise.

Memorandum of Understanding

A Memorandum of Understanding (MOU) is an agreement between two or more parties that outlines the broad terms and understanding of a potential or existing relationship or transaction. It serves as a precursor to the final contract and establishes a framework for the foreseen transaction.

Power of Attorney

A Power of Attorney (POA) is a legal instrument that grants one person or entity the authority to act on behalf of the principal. Many intricacies must be considered before executing one.

Mortgage Deed

There are six major types of mortgages. Broadly, a mortgage is an instrument by which a mortgagor pledges the property as collateral to secure a loan or finance from the lender. Any recklessness or negligence in documentation may lead to the loss of the property.

Development Agreement

Developing lands into residential or commercial buildings and projects has a long history. A landowner and developer may enter into a development agreement outlining the rights, responsibilities, obligations, compensation, and other terms and conditions as mutually agreed. The Real Estate (Regulation and Development) Act of 2016, has been enacted to regulate real estate projects, depending on the specific project’s applicability.

Re-development

Redevelopment involves constructing new buildings or projects by demolishing the existing structure. The developer and the existing members/society/condominium enter into a redevelopment agreement to outline the particulars and specifications of such redevelopment.