Content

CHAPTER 1
Immovable Property—An Introduction to a New Perspective ............. 1
Introduction ............................................................................................... 1
Scope .......................................................................................................... 3
Immovable Property and Transfer of Immovable Property .................... 4
Persons Competent to Transfer ............................................................... 5
Verification of documents of Title ............................................................ 6
Operation of Transfer ................................................................................ 6
Conditional Transfer ................................................................................ 7
Transfer Where Third Person is Entitled to Maintenance ..................... 8
Transfer by Ostensible Owner .................................................................. 9
Transfer by Unauthorised Persons who subsequently acquire
interest in the property transferred ....................................................... 10
Transfer by one Co-owner ....................................................................... 11
Extent of interest of transferee incase of Joint Transferee .................. 11
Extent of share in consideration incase of Joint Transferor ................. 12
Priority of Rights created by the Transfer ............................................. 13
Doctrine of Lis Pendens .......................................................................... 13
Fraudulent Transfer ............................................................................... 15
Registration Procedure ........................................................................... 16
Effect of Non-registration of Documents ............................................... 17
Land Titling Bill, 2011- A Revolution in offing ..................................... 17
Transfer of Immovable Property and FEMA ......................................... 20
Definitions ............................................................................................... 23

CHAPTER 2
Agreement to Sell an Immovable Property ......................................... 27
Scope ........................................................................................................ 28
Execution of an Agreement to Sell ......................................................... 28
Execution of Incidental Documents ....................................................... 28
Registration of Agreement to Sell ......................................................... 30
Consequences of Non-registration ......................................................... 30
Stamp Duty Payable on Agreement to Sell ........................................... 32
Suit for Specific Performance of an Agreement to Sell ......................... 32
 Content

Limitation for Institution of Suit of Specific Performance ................... 34

Whether time is an essence of contract in sale of
Immovable Property ............................................................................... 34
Who may obtain Specific Performance .................................................. 36
Bars to the Relief for Grant of Specific Performance ............................ 37
Doctrine of Part Performance ................................................................. 39

CHAPTER 3
Sale of Immovable Property ................................................................. 43
Scope ........................................................................................................ 43
What is a Sale? ....................................................................................... 44
Price/Consideration ................................................................................ 45
How is a sale made? ............................................................................... 46
Construction of a Sale Deed ................................................................... 47
Contract for Sale ..................................................................................... 47
Rights and Liabilities of the Buyers and Sellers .................................. 47
Rights of the Buyer .......................................................................... 50
Benefits accruing to the buyer ......................................................... 50
Improvement in the immovable property ................................ 51
Increase in the value of the immovable property .................. 51
Rents and profits of the immovable property ........................ 51
Charge on the property in favour of the buyer ........................... 51
Other rights of the buyer ............................................................... 53
Liabilities of the Buyer .................................................................... 53
Rights of the Seller .......................................................................... 54
Liabilities of the Seller ..................................................................... 54
Stamp Duty payable on Sale Deed ........................................................ 55
Registration of Sale Deed ....................................................................... 57
Agreement for Re-conveyance ................................................................. 59
Auction Sale by the Order of Court ........................................................ 60
Earnest Money ........................................................................................ 61
Treatment of Sale under Income Tax Act .............................................. 61
Sale and FEMA ....................................................................................... 62
Where the Seller is a Citizen of India but is a person not
resident in India ............................................................................... 63
Where the buyer is a person of Indian Origin ................................. 63
Where the seller is a person of Indian Origin ................................. 64
Where the buyer is a Foreign National ........................................... 64
Where the seller is a Foreign National ........................................... 64

CHAPTER 4
Mortgage of an Immovable Property .................................................... 65
Introduction ............................................................................................. 66
What is a Mortgage? ............................................................................... 66

xiv
 Content

Transfer of an Interest in an Immovable Property ......................... 67

Purpose of Transfer should be securing the payment of money ..... 67
Performance of an engagement ........................................................ 68
Transferor is called a mortgagor and transferee a mortgagee ........ 68
Kinds of Mortgage ................................................................................... 68
Simple Mortgage ............................................................................... 68
Mortgage by conditional sale ............................................................ 70
Usufructuary Mortgage ..................................................................... 71
English Mortgage .............................................................................. 72
Mortgage by Deposit of Title Deeds ................................................. 73
Anomalous Mortgage ........................................................................ 74
Redemption of mortgage ........................................................................ 74
Persons who may sue for redemption .................................................... 76
Legal Proceedings for Redemption of Mortgage .................................... 77
Foreclosure or Sale of Mortgaged Property ............................................ 79
Right to seek foreclosure .................................................................. 81
Right to seek sale of mortgaged property ........................................ 81
Right to sue for mortgage money ...................................................... 83
Where the mortgagor binds himself to pay the mortgage
money ......................................................................................... 83
Where the mortgaged property is wholly or partly destroyed . 83
Where the mortgagee is deprived of the whole or part of his .......
ecurity ......................................................................................... 83
Where the possession of the mortgaged property is not
handed over to the mortgagee ................................................... 84
Legal Proceedings for Foreclosure or Sale of Mortgaged Property ....... 84
Registration of Mortgage Deed ............................................................... 85
Stamp Duty Payable on Mortgage Deed ................................................ 85
Mortgage and FEMA ............................................................................... 87
Loan by a person resident in India .................................................. 87
Loan by a non-resident PIO .............................................................. 89
Housing Loan to non-residents in Rupees ....................................... 90

CHAPTER 5
Lease of an Immovable Property .......................................................... 91
Introduction ............................................................................................. 92
Definition of Lease .................................................................................. 93
Execution of a Lease ............................................................................... 93
Rights and Liabilities of the Lessor ...................................................... 95
Rights and Liabilities of the Lessee ...................................................... 95
Termination of a Lease ........................................................................... 96
Efflux of time ................................................................................... 97
Express and implied surrender ...................................................... 97
Forfeiture ......................................................................................... 98
Service of Notice to Quit .................................................................. 99
xv
 Content

Application of Rent Control Legislations ........................................... 100

Andhra Pradesh ............................................................................ 100
Bihar ............................................................................................. 100
Delhi .............................................................................................. 100
Haryana ........................................................................................ 101
Karnataka ..................................................................................... 101
Kerala ............................................................................................ 101
Madhya Pradesh ........................................................................... 102
Maharashtra ................................................................................. 102
Rajasthan ..................................................................................... 102
Tamil Nadu ................................................................................... 102
Uttar Pradesh ............................................................................... 103
West Bengal .................................................................................. 103
Grounds of eviction under rent control legislations ........................... 104
Model Residential Tenancy Act, 2011 ................................................. 106
Registration of a Lease Deed .............................................................. 107
Stamp Duty Payable on a Lease Deed ................................................ 107
Lease and Foreign Exchange Management Act ................................. 107

CHAPTER 6
Gift of an Immovable Property ........................................................... 109
Scope ...................................................................................................... 110
Meaning of “Gift” .................................................................................. 110
Transfer ........................................................................................... 111
Certain ............................................................................................ 111
Existing ........................................................................................... 111
Immovable property ....................................................................... 111
Voluntarily ...................................................................................... 112
Consideration .................................................................................. 113
Parties ............................................................................................. 113
Acceptance ....................................................................................... 113
Manner of Transfer of Immovable Property by Way of Gift ................ 114
Registered instrument ................................................................... 114
Signed by or on behalf of the Donor ................................................ 117
Attested by at least two witnesses ................................................ 117
Possession ....................................................................................... 118
Voidance of a Gift .................................................................................. 119
Suspension or Revocation of a Gift ...................................................... 119
Onerous Gifts ....................................................................................... 120
Stamp Duty Payable on the Gift Deed ................................................ 121
Treatment of Gift by the Income Tax Act, 1961 ................................. 123
Gift Tax Act .......................................................................................... 124
Gift Under Muslim Law ...................................................................... 124
Restriction of Donor’s Powers in Mohammedan Law .................. 125

xvi
 Content

Essentials of Gift under Mohammedan Law ............................... 125

Gift and FEMA .................................................................................... 126
Where the Donor is a Person of Indian Origin .............................. 127
Where the Donor is a Non-resident Citizen of India .................... 128
Where the Donor is a Foreign National of Non-Indian Origin ..... 129
Remittance of funds by NRI/PIO .................................................. 129

CHAPTER 7
Exchange as a Mode of Transfer ......................................................... 131
Introduction .......................................................................................... 131
Definition of Exchange ......................................................................... 131
Execution of Exchange ......................................................................... 132
Treatment of Exchange under Income Tax act .................................... 132
Exchange and FEMA ........................................................................... 132

CHAPTER 8
Inheritance ........................................................................................... 133
Part I
Scope ..................................................................................................... 134
Non-testamentary Succession ............................................................ 135
Laws of Non-Testamentary Succession Applicable to
Hindus, Jains, Buddhists and Sikhs .................................................. 135
Murderer ......................................................................................... 136
Convert’s descendants ................................................................... 136
Gender-based Rules ............................................................................. 136
Non-testamentary Hindu Male ..................................................... 137
Non-testamentary Hindu Female ................................................ 141
Laws of Non-Testamentary Succession Applicable to Parsis ........... 143
Possibility I: Succession incase the Intestate is Survived
by a Widow/Widower and Children and Parent/Parents ............. 144
Possibility II: Succession incase the Intestate is Survived
Only by Children and Widow or Widower. .................................... 145
Possibility III: Succession incase the Intestate is Survived
Only by lineal descendant ............................................................. 145
Possibility IV: Succession incase the intestate is survived
Only by a widow or widower and no lineal descendant ................ 146
Possibility V: Succession incase the intestate is survived
Only by a widow or widower and also a widow or widower
of any predeceased lineal descendant ........................................... 147
Possibility VI: Succession incase the intestate is survived
Only by the widow or widower of any lineal descendant .............. 148
Possibility VII: Succession incase none of the above
possibilities are available ............................................................. 148
Laws of Non-Testamentary Succession Amongst Jews and
Christians ............................................................................................ 149

xvii
 Content

Possibility I: Distribution where there are lineal descendants,

with or without a surviving widow/widower ................................. 149
Possibility II: Distribution where there are no lineal
descendants, with or without a surviving widow/widower ........... 150
Possibility III: Distribution where there are no widow, lineal
descendant or kindred of the intestate. ........................................ 151
Laws of Non-Testamentary Succession incase of Inter-faith
Marriages Under Special Marriage Act, 1954 .............................. 151
Laws of Non-Testamentary Succession Amongst Muslims ......... 152
Heritable property under Muslim Law ......................................... 152
Payment of certain charges .................................................... 152
Movable and immovable property ......................................... 153
Opening of Inheritance .................................................................. 153
General Rule ........................................................................... 153
Rule of Exclusion .................................................................... 153
Entitlement to Inheritance ........................................................... 153
Sunni Law ............................................................................... 153
Shia Law ................................................................................. 154
Theory of Propinquity .................................................................... 154

PART II
Testamentary Succession .................................................................... 154
Who is Capable of Making a Will ................................................. 155
Extent of property capable of transfer by Will ............................. 155
Form of Will ................................................................................... 156
Revocation of Will .......................................................................... 157
Kinds of Will .................................................................................. 157
Execution of Will ............................................................................ 157
Registration of Will ....................................................................... 159
Proof of execution of Will ............................................................... 160
Probates and Letters of Administration ...................................... 162
Objection to the grant of probate ........................................................ 162
Challenge to the Will ..................................................................... 162
Court fees on probate and letters of administration ................... 163

PART III
FEMA in Relation to Inheritance ........................................................ 164

CHAPTER 9
Real Estate and Consumer Protection Act, 1986 ............................... 167
Introduction .......................................................................................... 167
Object of Introduction of Consumer Protection Act, 1986 ................. 168
Who is a Consumer? ............................................................................ 168
Allotted .......................................................................................... 170

xviii
 Content

Members of a society ..................................................................... 170

House owner and builder ............................................................... 170
Whether Consumer Protection Act is Applicable to
Public Statutory Bodies ...................................................................... 170
Deficiency in Services: Meaning .......................................................... 172
Late delivery .................................................................................. 173
Escalation ...................................................................................... 174
Refund ............................................................................................ 175
Substandard material ................................................................... 175
Conversion ...................................................................................... 175
Property allotted in occupation of third party .............................. 175
Harassment ................................................................................... 176
Alternative plot .............................................................................. 177
No Deficiency In Services ..................................................................... 178
Real Estate and the Competition Act, 2002 ...................................... 180
Land Acquisition and Consumer’s Dilemma ..................................... 184
An Introduction to the New Bill—Model Real Estate
(Regulation of Development Bill) ....................................................... 185

ANNEXURES
1. Foreign Exchange Management (Acquisition and Transfer of
Immovable Property in India) Regulations, 2000 .............................. 187
2. Definitions in FEMA—Act, Rules and Regulations ........................... 191
3. Frequently Asked Questions (FAQs) on Acquisition and Transfer of
Immovable Property in India by a Person Resident Outside India .. 200
4. Acquisition and Transfer of Immovable Property in India by
Non-residents ....................................................................................... 209
5. Remittance Facilities for NRIs/PIOs and Foreign Nationals ........... 214
6. List of Authorised Dealers – Category I and other Institutions to
Whom Licences Have Been Issued to Deal in Foreign Exchange ...... 217
7. Remittances to a Non-resident: Deduction of Tax at Source ............. 220
8. Foreign Exchange Management Act, 1999 ......................................... 222
9. Indian Stamp Act, 1899: Relevant Articles in Schedule I ................. 245
10. State-wise List of Stamp Duties Payable for Transfer of
Immovable Property ............................................................................ 252
11. Checklist for Purchase and Sale of Urban Property .......................... 260
12. Checklist for Lease of an Immovable Property .................................. 264
13. Checklist for Mortgage of an Immovable Property ............................ 267
14. Scheme of Freehold Conversion of Residential Flats in Delhi .......... 268
15. Conversion of Residential Leasehold Plot into Freehold
Status in Orissa .................................................................................. 274

Model forms
16. Agreement to Sell ................................................................................ 277
17. Deed of Mortgage of House and Lands ................................................ 283

xix
 Content

18. Mortgage by Conditional Sale ............................................................. 285

19. Usufructuary Mortgage ........................................................................ 287
20. English Mortgage Deed ........................................................................ 290
21. Lease Deed ........................................................................................... 294
22. Agreement for Exchange ...................................................................... 298
23. Gift Deed .............................................................................................. 300
24. Will ....................................................................................................... 302

New Proposed Laws

25. A Model Real Estate (Regulation of Development) Act 200___ ........ 304
26. Model Residential Tenancy Act, 2011 ................................................. 332
27. The Land Titling Bill, 2011 ................................................................. 350

Index ................................................................................................................ 368

xx