Most of us aspire to possess a real estate asset but purchasing or even renting a piece of property needs careful planning and diligence. It is essential to hire a legal professional beforehand in order to prevent a scenario which will require the engagement of a property dispute lawyer. A lot of people do not look beyond good communication and negotiation skills when hiring a real estate lawyer in India, which are necessary attributes that any good professional must possess but clients should also check whether the lawyer has good contract drafting skills or not. Lawyers must know about the agreements that are used in most property deals and a list of some the most important contracts is being presented here for the benefit of professionals aspiring to make a career as real estate attorney.
Table of Contents
1. Sale Deed
One of the most common documents used in property deals that all professionals working with any legal firm in India must know about is the sale deed. This legal instrument is used for selling and transferring the ownership of an immovable asset from one person to another. It contains all necessary details such as the manner in which the seller acquired or came to own the said property and the monetary consideration for which he/ she is selling the asset to the purchaser. It is compulsory for any individual or organization involved in any such agreement to get the sale deed registered with the Sub-Registrar of the jurisdiction where the immovable asset is located. The document holds immense value for any purchaser of a real estate asset as it establishes his/ her legal ownership of the asset. It must not be confused with sale agreement which is a document that states the intention of two parties to sell a piece of property. The sale deed signifies the instant transfer of ownership of the asset from the seller to the buyer.
2. Property Sale Agreement
The initial agreement that contains the terms and conditions for the sale of a property, agreed upon by the two parties involved in the transaction is also a vital document as it lays the ground for the successful execution of the sale deed. The property sale agreement must contain the complete description of the property including its measurements apart from the price agreed upon by both the buyer and the seller. Other important details that must be included in the document are the date(s) of the payment and the manner in which it will be made. Most such agreements also include a penalty clause defining the fine or condition for both parties in case either of them decides to back out of the deal. A lot of sellers also insist on putting in a clause which gives them the right to call off the deal in specified situations while purchasers ask for an indemnity clause which protects them from any legal dispute related to the asset.
3. Lease Deed
Lease deed is a key agreement that all real estate lawyers in India must know how to draft as renting or leasing a property is one of the most common real estate transactions. The document is used to transfer the right to enjoy the property for a specified period of time in return for a payment of a price or any other thing of value periodically. Letting out a property whether commercial or residential is a very good method of earning money from an immovable asset but it requires a legal document that will safeguard the interests of the rightful owner or lessor while laying out the conditions regarding the period of time and the amount of rent being paid by the person leasing the property or lessee. These documents are generally made for long durations and also include the provisions for the manner in which the agreement can be terminated.
4. Gift Deed
The ownership of a piece of property is transferred by sale only and there is another method which is used by people when they desire to give the ownership rights of an immovable asset to a family member or any other person. Any such transaction if formalized by a gift deed which explicitly states that the donor or the present owner of the asset is passing on the ownership to the donee or the person to whom the property is being transferred, voluntarily and without monetary or any other consideration. In order for the document to be valid, it is essential that the donee accepts the gift and the deed is registered at the office of the specified authority after payment of the requisite fees. In cases, where the donee is a minor, the natural guardian of the donee can accept the gift on his/ her behalf and when the minor comes of age, he/ she can either accept the gift or if possible return it back to the donor.
5. Joint Development Agreement
A joint development agreement is signed between an owner of land and a property developer for constructing a real estate on the said plot of land. The owner provides the land in such deals while the developer bears the cost of development and construction apart from obtaining all the required legal and regulatory approvals. The document states the mutual agreement between both parties and the consideration for which the owner lets the developer use the land for construction. The consideration is usually in the form of payment, sharing of the constructed asset, division of gross revenue or a combination of all three.
6. Leave And License Agreement
An agreement through which the licensor lets a person who is called the licensee, use part of a residential or commercial property for a limited period of time (which is generally 11 months), in return of fixed amount of money is called the leave and license agreement. It is compulsory to register the agreement at the office of the Sub- Registrar of the jurisdiction where the property is located.
Conclusion
In order to provide efficient services to clients looking to close successful property deals, all real estate lawyers in India must possess complete knowledge about every aspect of such matters and must learn about all requisite documents and agreements needed for successful realisation of any property transaction.
Author Bio:
Amy Jones is a versatile legal expert and working in Ahlawat & Associates for last 2 year. One of the top law firms in India where you can discuss with experts about your legal problems.