An Article Regarding "Rental Agreements"

Rental Agreements

 

It would not be simple to unleash the property and be happy from legal proceeding unless there exists a properly written rental agreement. Therefore, it's higher to understand the salient options of the rental agreements before any property is unleash. 

Rental agreements within the legal word, square measure referred to as Lease Agreements. The one who transfers the property is termed the 'Lessor', and therefore the one who accepts the transfer of property is termed the 'Lessee'. per section one zero five of the Transfer of Property Act, 1882, a lease of immoveable property could be a transfer of the proper to fancy such property, created for a precise time, categorical or silent, or in sempiternity, in thought of the value paid or secure, or of cash, a share of crops, service or the other issue valuable, to be rendered sporadically or on fixed occasions to the transferrer by the transferee, WHO accepts the transfer on such terms. In short, a lease could be a transfer of a right to fancy the property of the lesssor by the tenant sure enough time, throughout that amount the tenant is place in possession of the property upon payment of lease cash or rent. 

Elements of an honest lease The essential parts ofa lease square measure (1) parties, (2) subject material, (3) terms oflease (4) thought or rent and (5) length of lease. A lease group action involves commitment by each property owner|the owner} and therefore the tenant that square measure complimentary to every different - the owner agreeing to unleash his property to the tenant in thought of the latter paying him the rent and therefore the tenant agreeing to pay to landlord the rent in thought of the owner permitting him to use the hired premises. A lease is that form of encumbrance that consists of a right to possession and use of property closely-held by another person. it's the end result of separation of possession and possession. 

A residence is formed not solely by associate categorical contract however additionally by implication by the conduct of parties. Acceptance of rent by the owner clearly establishes existence of residence. A lease of immoveable property could also be settled either below a registered instrument or below associate unregistered instrument. However, in cases wherever the lease is from year to year or for any term prodigious one year or reserving a yearly rent the lease is to be created solely below a registered instrument of lease [Sec.107 of T.P.Act] and therefore the lease agreements for a period but one year don't need registration. 

One Year amount 

It is a standard follow to terminate the lease agreement at the top of each eleventh month and enter into a contemporary Lease Agreement since if the rent is paid on yearly basis or if the amount of lease exceeds one year, then it's necessary to register the lease agreement below sec.17( d) of the Indian Registration Act, 1908. 

Contents 

An agreement of lease ought to be written fastidiously and properly to safeguard the rights of each the parties and to avoid any misunderstanding at a later date. It ought to be truthful to each the lease giver (landlord) and therefore the tenant (tenant). 

It ought to invariably mention the parties name and address, description of the property, length of lease, monthly rent owed, date of payment of monthly rent; clause for improvement of rent on renewal of lease, quantity of interest-free refundable margin, penalty clause just in case of default in payment of rent, liability of the tenant for damages to the property and therefore the fixtures and fittings, notice amount just in case of premature termination of lease; date of commencement of lease and therefore the date of expiration of lease; notice amount and manner during which the notice can ought to be served etc. 

Obligations of the lease giver the primary and foremost duty of the lease giver is to abide by the terms of the lease agreement in letter and spirit and to confirm that the tenant is allowed to fancy the hired premises while not interference. He shall ought to make sure that all the fundamental and civic amenities square measure provided to the hired premises. it's the responsibility of the lease giver to hold out major repairs to the hired property to create it inhabitable and pay municipal and different taxes due on the property. 

The lease giver ought to make sure that the hired premises isn't used for any immoral or unlawful functions nor enable storing of any dangerous  and ignitible materials like explosives, etc. lease giver shall issue receipts for the earnest deposit and for the rents received by him in respect of the hired property. The lease giver shall refund the safety deposit received from the tenant once once the lease has come back to associate finish. 

He shall not below the belt build deductions whereas refunding the safety deposit on grounds of repair to the hired property. The lease giver is guaranteed to divulge heart's contents to the tenant any material defect in property with respect to its supposed use of that the previous is and latter isn't aware and that the latter couldn't with guardianship discover. The lease giver is additionally sure on the lessee's request to place him in possession of the property. Obligations of the tenant throughout subsistence of the lease, the tenant encompasses a right to fancy the hired premises while not interference from the lease giver or by anyone on his behalf. 

The tenant shall pay to the lease giver the monthly rent for the hired premises on the in agreement date. He shall additionally pay the electricity and water bills on or before due dates to the Legal involved authorities and furnish a replica of the receipt received by him from such authorities to the lease giver for his records. 

The tenant shall continually keep lease giver knowing concerning the additions or alterations that the hired premises could need to alter the lease giver to attend to such work. The tenant shall not build any structural alterations to the premises or cause damages to fixtures and fittings throughout the subsistence of the lease. The tenant is below a legal obligation to not use the hired premises for immoral or felonious functions nor for storing the dangerous  and ignitible materials like explosives, etc. The tenant is below obligation to use the hired premises for self use and to not sub-let an equivalent unless the lease agreement encompasses a provision for sub-letting. 

He shall not cause any nuisance to the co-tenants, maintain the premises in a very inhabitable condition, and on completion of the lease amount, deliver the hired premises to the lease giver while not making any nuisance upon receipt of the earnest deposit. If the lease giver fails to create any repairs, inside affordable time when notice, the tenant could build an equivalent himself and deduct the expense of such repairs with interest from the rent, or otherwise recover it from the lease giver. If the tenant involves grasp of any recovery proceedings in respect of the hired property, or of any encroachment, or interference with the lessor's right in respect of the hired premises, he's guaranteed to offer notice therefrom to the lease giver.

Property Registration

An Article about "PRECUATIONARY MEASURES BY PURCHASERS FOR PROJECTS UNDER CONSTRUCTION"

PRECUATIONARY MEASURES BY PURCHASERS FOR PROJECTS UNDER CONSTRUCTION

There is every need to ensure that the documentation of the property proposed to be purchased, is legally valid and enforceable in Law. In case of a readymade flat or house, this process may be little bit easier, but in case of projects under construction there needs strict due diligence.

A broad guideline on the steps to be taken in right direction for this task, is the following:

The first thing one should do, in case of projects that are still under construction, is to make sure that the builder has all the necessary approvals in place, without which it would be considered illegal. The first of these, is the necessary permission to develop the land into a residential complex. For such development, the Builders need to get approval from the Competent Authority of the Government for conversion of agricultural land or land specially designated for industrial purposes into land for residential area.  In case, if the builder has gone ahead without obtaining this approval, the entire project is illegal and it is very risky.

For obtaining conversion of land, it also need several clearance from  environment and other departments such as fire, safety, municipal administration, airport authority, telephone department, etc.  In addition to these, the builder should ensure that his project does not interfere with the urban and town planning and that the entire project has unrestricted access to road and other public utility services.

Secondly, the purchaser should find out, whether the builder has necessary authority to transfer the undivided share of land to each flat owner and the entire plot to the Society of Apartment, on completion of the Project.

Lastly, the purchaser should never forget that  there may be many a slip between the ‘blue print’ and the actual ‘final product’.  In general,  the developers tend to charge a premium for additional features, such as ‘swimming pool’ or ‘designer furniture’ etc. However, unless you ask the builder to incorporate all the promised features in the Agreement and make provisions for penalty in case of non-fulfilment, you stand on shaky ground.  Also, watch out for the fine print, because the builders may slip in a clause in the agreement and may claim that they reserve the right to alter any of the promised features.

As an adequate precaution, please take a look at the approved construction plans and ensure whether they match with things which were promised to you.  You can ask the builder to show you the requisite permits / approvals obtained from the concerned authorities.  While the approved construction plans have to be mandatorily displayed at the construction site at all times, all the important approvals should be made available at the builder’s office. As per the provisions contained in Transfer of Property Act and Maharashtra Ownership of Flats Act, a seller is required to disclose all facts relating to the property, which include various permissions secured by him.  In case the builder refuses to do so, a prospective buyer has recourse under the same acts.      

In addition to these documents, you should also take a look at the Commencement Certificate for Projects in Mumbai. As the name itself suggests, this Certificate is given to the builder to begin construction, only after ensuring that the builder has obtained all the requisite clearances.    

 

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An Article about "PREVENTIVE STEPS BEFORE PURCHASE OF PRE-OWNED PROPERTY"

PREVENTIVE STEPS BEFORE PURCHASE OF PRE-OWNED PROPERTY

 

 

If you are purchasing an independent pre-owned property or a flat in a housing society, initially ask for the original share certificate. One way of ensuring right ownership for property, is to verify the house agreement.  To double check, you can also peruse the telephone and/or electricity bills, as they are issued only in the name of the lawful owner of property. Alternatively, you can check the housing society’s maintenance bill which contains the owner’s name and property tax details.  This document will also highlight any pending charges that are due payable by the owner of the house or flat which you propose to buy. This is crucial because, if the owner sell the flat without paying his entire outstanding dues, the society may recover the same from the new owner.  In order to avoid such hassles, better to ask the Housing Society to issue a No-Due Certificate or a No Objection Certificate.

Please note that any pending litigation on the property should also be a warning signal because the purchaser is legally bound by the result of the suit, and in case the Court establishes that the seller was not the rightful owner, you will have to hand over the property to the true owner who obtains a Judgment and Decree to that effect issued by the Court of Law. 

To check for pending litigations on the property, the lis-pendens registry available at Sub Registrar’s Office need to be verified, as it will contain the owner’s name in case any litigation is pending.

Mortgaged properties are the other lemons, you need to watch out for.  In such cases, the original documents of the property are invariably held by the concerned lending Institution.  As such, in case the Seller fails to show you the original documents of the property, there is every reason  for you to be more alert.  In case the Seller claims that he has cleared the entire outstanding dues, then insist for Bank’s full satisfaction letter or original discharge letter.

Before conclusion, it is generally opined that a clear title is not assurance enough and as such one should even consider to contact previous owners, to rule out any fraudulent transaction. As a prudent purchaser, it is better to publish a ‘public notice’ in the newspaper inviting objections if any against your proposed purchase of said property. 

Property Registration

An Article Regarding "PROPERTY EXCHANGE DEED"

PROPERTY EXCHANGE DEED

 

As per provisions contains in Section 118 of Transfer of Property Act, when two persons mutually transfer the ownership of one thing for the ownership of another, neither thing or both the things being money only, such a transaction is called an exchange. This definition is not restricted to immovable property only.

Thus, exchange implies, when two separate property owners mutually agree to transfer the ownership rights by exchanging the property. Further, exchange also mean exchange of lands and barter of goods too.

If one of the items that has been transferred in money, then it is not an exchange but sale, because sale should always be for a price. But money in one form can be exchanged for money in another.

In case of exchange, the transfer of ownership of one thing is not the price paid or promised to pay, but something else in lieu. For example: if a person transfers a land valued Rs.20,00,000/- to another and in return, the other person transfers a shop valued Rs.18,00,000/- and pay Rs.2,00,000/- in cash, it is an exchange.

This type of exchange transactions can be reduced into writing in the form of Property Exchange Deed. This Exchange Deed document for transfer of property rights need to be registered with the jurisdictional sub Registrar’s Office by paying prescribed stamp duty.  While drafting the exchange deed and its registration including the document execution, its presentation and admission utmost care need to be taken, since this is a complex process.

Before drafting such complex type deed of transfer, it is very important to ensure that all the necessary requirements for the effective enforcement of such deeds are incorporated which only give legal sanctity to the document. The essential requirements for such deeds are discussed below:

Description of the Deed

The deed has to specify the description, such as “This Deed of Property Exchange”, which may not necessarily be in bold letters, but is preferable, in order to highlight the nature of the deed.

Date of execution

It is very important to mention the date of execution of the deed since the same is required to determine the limitation and also for recording of such exchange in the revenue records. Further, the date of execution of the document may vary from the date of registration. However, the documents can be presented for registration, anytime within four months from the date of execution.

Parties to the deed

All the proper and necessary persons pertaining to the property intended to be exchanged have to be mandatorily made as parties to the deed in order to avoid possible future legal disputes, which may likely to be raised by the parties having interest over the exchanged property. It is also important to properly depict the status of each party to the deed.

Recitals

The deed shall contain the previous history pertaining to the property in a precise way, explaining the nature of the interest and motive behind the exchange of property, which only authenticate the title, and is called as Recitals in the legal terminology. 

Covenants

A covenant is an agreement wherein either or both the parties to the deed bind themselves to certain terms and conditions, which create an interest over the property, which may either be express or implied. In recent times, with the advent of Apartment culture, it is very necessary to incorporate covenants of various types besides those for maintenance of common areas and facilities in the deed.

Testimonium

This is the part of the deed which states that the parties have signed the deed. This is very important in order to prove the authentication of the execution of the deed and the necessary involvement of the proper parties having interest in the property in legally conveying to the parties of the other part.

Testatum

This is the witnessing clause wherein the witnesses signing the deed are introduced, along with their names, address and signature. This clause is also very important for the reason that the witnesses also play an important role to prove the execution of the document. However, it is advisable that both the witnesses are from purchaser/ transferee’s side. 

Operative words

This part of the deed depends upon the nature of conveyance. However, operative words clearly depict the intention of the parties conveying the property in favour of the other party/ies, which is necessary for transfer of rights over the property. 

Parcels

This means description of the property following the operative words. Anything intended to be conveyed/assigned has to be specifically mentioned. Every minute detail about the identification of the property has to be clearly incorporated. Any ambiguity about the description of the schedule property may lead to serious problems.

Exceptions and Reservations

Property intended to be transferred by way of exchange must not fall within the ambit of those prohibited under any statute or the Government notification. This part of the deed speaks about the conditions restraining the alienation and assurance that such alienation does not involve any restrictions.

Exception refers to some property or definite right which is existing on the date of conveyance and the same would transfer if not expressly excluded.
Whereas, Reservation refers to the right which is not existing but created at the time of transfer.

Completion of transaction

The deed can be enforceable only if the same is properly stamped under Indian Stamp Act. Apart from this, it is also necessary that the same has to be registered under the Indian Registration Act. Only after the registration of such documents, the right, interest and title over the property is validly transferred from the transferor to the transferee. 

Execution

Execution of the document will be complete only after the parties put their signatures on the deed. However, special care should be taken when any of the deed is signed by the party who is an illiterate or blind or Pardanashin lady. In case any document is signed by some person by putting thumb impression, the documents has to be signed by the person who has taken the same and if any map or plan sketch is annexed to the document, then the same has to be signed by the parties.

Possession of property

It is very important that the transferor transfers possession of the property in favour of the transferee. It is not necessary that actual possession has to be handed over to the transferee, but even constructive possession will transfer and create right and interest over the property.

Thus, the transfer or assignment of right, title and interest over the property, irrespective of the nature of transfer, entirely depends upon the deed of conveyance. Any ambiguity, inadvertent addition or deletion in the deed may give rise to lot of legal problems, thereby obstructing peaceful possession and enjoyment of the property.

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An Article Regarding "Defect in property is different from defect in title"

Defect  in  property  is different  from  defect  in  title

 

In recent times, dealings in real estate in Bangalore  have been  at the peak. Predominant reason for this is the growth of IT sector and the eagerness of the people to invest their money in real estates in and around Bangalore. As the real estates require huge investments, the purchaser has to  take  necessary precautions before investing his money to save himself from future complications. If the property transferred suffers  from any  defect in  the title of the vendor, the purchaser does not get good and marketable title.   Therefore, the purchaser  has  to make doubly sure  before finalizing the deal, that the  vendor has got a valid and marketable title. 

Marketable Title:

The term “Marketable title” means a title which  is clear and free from reasonable doubts and is a title good against everybody.  Thus, it is the title which establishes full ownership of the vendor to the property intended to be conveyed, without reasonable doubt. A  buyer is not bound to complete the sale if there are defects in the title to  the property  which are material and latent. The defect to be material, it is to be of such a nature that if the purchaser were aware of it he would not  have entered into the contract of sale at all.

Doubtful or defective title:

A title is said to be doubtful when the vendor does not have any conclusive evidence to prove the ownership. The defects in title are generally latent defects which can be found only on investigation of title by perusal of documents, by an eminent advocate,  carrying out  searches of Government Departments  and Municipal records and by making reasonable enquiries. The vendor is bound to disclose such latent defects  known to him.

A title becomes doubtful:

-> Where the doubt arises by reason of some uncertainty in law itself;

-> Where the doubt pertains to the application of some settled principle or rule of law.
 

-> Where a matter of fact upon which a title depends is either not in its nature capable of satisfactory proof or is  capable of such proof  but yet not satisfactorily proved.


The ownership of the vendor to the property intended to be sold, must be the  property traceable from the previous title deeds commencing from the Deed which can be considered as a good root of title and for this purpose  at least 30 years previous title would need to be verified. The property should have already been properly  transferred from all predecessors-in-title and no third person other than the Vendor should have any right or claim thereto.

Thus, for example, if ‘A’ has sold the property to B and if it is found that the property under sale belonged to a Hindu Joint Family property and ‘A’ has sold it neither for  legal necessity nor after obtaining the consent from Co-Parceners, then the property sold to ‘B’ is said to be defective.

The following are a few instances where the title cannot be termed as defective:
 

->An omission to disclose a prior agreement for sale by the Vendor is not a defect in title.

->Title by adverse possession is marketable and not a defective title, if proper title by such possession can be successfully made out. A title may be good  although there are no Deeds but there must have been such a long uninterrupted possession, enjoyment and dealing with the property as to form a reasonable presumption that the title  is absolute .

-> Loss of title deed is not a defect, if the loss can be explained satisfactorily.

Defect in property:

Defect in property is different from the defect in title. A defect in the property only prejudices the purchaser in the physical enjoyment of the property but the defect in title exposes the purchaser  to adverse claims. This difference has been enunciated in Section 55 (1) (a) of the Transfer of Property Act, which provides that the vendor is bound to disclose to the purchaser any material defect in the property or in the vendor’s title. The defects in property are generally patent defects which can be seen on an  inspection of the property and the Vendor need not disclose the same so long as the same does not lead to defect in title.

Root of title:

In investigating title and in considering whether the title is marketable and free from reasonable doubts, it is necessary to find out the root of the title. Documents are considered as root of the title. A good root of title is a document purporting to deal with the entire property conveyed, which does not depend upon the validity of any previous instrument and without inviting any suspicion on the title of the Vendor.  It may also be described as a document of transfer of property showing nothing to cast any doubt on the title. An instrument, the effect of which depends on some earlier document is considered as an instrument with  insufficient root of title. In India, there is no law which stipulates statutory period for examination of  root or commencement of title. However, it is advisable to investigate the title for a minimum  period of 30 years unless the circumstances warrant production of documents beyond 30 years.

Though our law makes it obligatory on the part of the  vendors to disclose the defects in title  before the  sale of a property, purchasers have also  to exercise due diligence and investigate the title of the property before purchasing the same, to avoid future complications.

Property Registration

An Article about "REGISTRATION OF SALE DEED ALONE WOULD NOT GET OWNERSHIP"

REGISTRATION OF SALE DEED ALONE WOULD NOT GET OWNERSHIP

The general perception amongst the people at large is that  registration of the sale deed in  the concerned Sub-Registrar’s office  would conclude the formalities for  transfer of ownership of the property from the vendor to the Purchaser or his nominee, but it is not so. The formalities in purchase of immovable property could be broadly classified into pre-registration formalities and post-registration formalities, compliance of both is a must for getting the ownership rights over  the property  transferred in totality in favour of  the purchaser or his nominee. 

The term “Post registration formalities” refers to those activities  which are required to be performed subsequent to the registration of the Sale Deed.  They are:

Obtaining original title deeds:

Once registration of sale deed is completed, the Purchaser has to obtain all the original documents of title from the seller and compare them with the copies which his advocate had scrutinized for rendering his opinion to make sure that the documents scrutinized and documents referred to in the Sale Deed are  the same and have been correctly spelt.  If his advocate had called for production of certain other  relevant original documents or certified copies, the purchaser has to ensure that such documents are also made available to him for his custody.

Generally, at the time of entering into agreement of sale only certain basic original documents are made available to the purchaser along with copies of few other documents and therefore, at the time of sale agreement, the purchaser has only skeletal original  documents with him and the remaining original documents will be with the vendor himself.  Thus, the purchaser has to keep in mind to collect all the remaining original documents from  the vendor at the time of registration of the property. 

Upon registration of the property, the purchaser  has to collect the original registered sale deed. In addition to this, it is better if  he  applies and gets a few certified  copies of the Sale Deed for his custody and use.

Encumbrance Certificate:

Normally, encumbrance certificate for the  period prior to the date of transaction will be made available for scrutiny by the vendor.  In order to have Encumbrance Certificate with the reflection of the  latest sale transaction between the present vendor and the purchaser,  it is suggested that the purchaser  may apply for up-to-date encumbrance certificate on the date of registration of sale deed itself so that he can avoid making another  trip to the office at a later date for the purpose.  

Physical  Possession of the property:

Taking physical possession of the property is a very important step in a property transaction. Therefore, it is necessary for the purchaser to inspect the property at least a day prior to the date of registration to make sure that the property is free from occupation of any stranger and there is no hurdle to get possession of the property upon purchase.

In some cases, the property could have been under occupation of persons other than the owner/vendor  like tenant or leaseholder, trespasser, etc. Irrespective of such occupancy by strangers, the vendor should be insisted upon to deliver vacant physical possession of the property  at the time of registration so that the purchaser could exercise his right over the property and  take possession of the same immediately upon purchase and put his lock for the building. 

In  case of vacant sites,  it is always  safe to fence such  sites immediately upon purchase, though it is a little expensive. In the alternative, the purchaser may display a board on a prominent place of  the site clearly indicating that “This property belongs to  XYZ. Trespassers will be prosecuted”. 

Periodical visits to the site are necessary to detect and prevent encroachment. 

Security Deposit and Tax receipts:

Once a property is purchased, the purchaser is duty bound to make all the statutory payments due on the  property to Government and other agencies. Therefore, the  purchaser is to get confirmed  whether property tax and other levies payable to Municipal authorities,  BWSSB, BESCOM, etc.,  are paid up-to-date and upon finding that any payment is outstanding, either he has to make such payment himself or insist upon the vendor to effect such payments. For this purpose, the purchaser has to collect and verify the latest property tax paid receipt and all the relevant statutory payment  receipts from the seller and upon visiting the concerned tax/revenue  offices. 

Khatha transfer:

Once the registration of the sale deed is concluded, the purchaser has to ensure that the Khatha of the property standing in the name of the vendor in the records of the concerned local authority is transferred to his  name. For such a transfer, both the seller and purchaser have to sign the application for transfer of Khatha and it is better that such an application is prepared and signed at  the time of executing  the sale deed itself to avoid complications at a later date. The application for Transfer of Khatha along with a copy of the sale deed, duly filled is to be submitted before concerned authority within whose jurisdiction the subject property falls. 

The Local bodies transfer the Khatha in the name of the purchaser upon collecting transfer fee which is, generally 2%, of the stamp duty paid on the Sale Deed and issue written confirmation of transfer in the name of the purchaser. Usually, the Local bodies  reassess the property and issue assessment notice in the name of the purchaser. The tax paid receipt should be in the name of the owner. 

Water and Power Meters:

Once  Khatha is transferred, steps for getting the   water and power connections registered  in the name  of the purchaser are to be initiated. For this purpose, careful verification of the receipts issued by the concerned authorities for the deposit and charges in favour of the vendor is necessary to make sure that such receipts stand in the name of the seller. A letter of No Objection addressed to the concerned authorities by the seller for such transfer of water and power connections and  the deposits made there under in the name of the purchaser is also necessary. The purchaser, along with the letter of No Objection  from the seller and the latest Khatha Certificate has to  apply to the appropriate authorities for effecting such a  transfer in his name at the earliest.  Upon consideration of such a request, the authorities will issue a written communication intimating the transfer of water and power connections and the deposits in the name of the purchaser. 

Though the above mentioned actions are simple in nature, to have peaceful possession and enjoyment of the property purchased compliance with these is necessary.

Property Registration

An Article about "Deed of Covenant for Production of Title Deeds"

Deed of Covenant for Production of Title Deeds

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 covenant for production of documents.”

The deed of transfer like sale, gift, will, and release may contain such a covenant 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 favour of each of other transferee of other portions or a common deed in favour of all other transferees jointly may be executed.

In the deed of transfer of the greatest portion or of highest value an explicit covenant, 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 covenant 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 covenant 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 covenant of production of document, the original covenantor 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 covenant does not require the registration, but it is advisable to get it registered.

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