Upon the death of an individual, his/her legal heirs have the right to inherit the property if the person has died intestate (without leaving a will). The title transfer is one of the many legal formalities to be fulfilled to get the property ownership. Before initiating the transfer process, one should obtain a legal heir certificate, a legal document that establishes the rightful heirs in an inherited property.
Steps to transfer the title of inherited property
Obtain legal heir certificate
To get an inherited property transferred in one’s name, one has to establish the proof to claim his rights and inheritance. One has to follow the legal procedure to obtain the document, which involves approaching the municipal corporation office (in urban areas) or the tehsil office (in rural areas).
Verify and establish clear title
Before the transfer of an inherited property, one has to verify and establish a clear title. It is also essential to conduct a title search to ensure there are no claims, dues, or encumbrances on the property.
Succession certificate or letter of administration
The legal heirs must obtain a succession certificate or a letter of administration to prove his rightful ownership and his claim over the inherited property. A succession certificate is issued through the civil court when a valid will exists, providing authority to transfer or inherit assets. A letter of administration, obtained when there is no valid will, authorised an administrator to manage and distribute the deceased person’s estate.
Probate for properties with a will
If a will is legitimate, it must go through probate, a legal procedure that establishes its validity and verifies its implementation. A probate certificate, which attests to the executor’s legitimacy as the estate administrator, is granted by a court.
Power of Attorney (PoA)
Within India, title transfer can be carried out by following the due procedure where the property is located. In case of an NRI, one can take professional help and complete the process through a Power of Attorney (PoA). The PoA must be in favour of the local representative or professional authorising them to act on behalf of the inheritor for specific actions of title transfer. The PoA should be duly notarised by an attorney in the country where the NRI resides, followed by attestation at the nearest Indian consulate in the country.
The PoA should be registered in India through an adjudication process. It requires payment of a specified fee or stamp duty at the registrar’s office. One has to submit documents, such as the official registered will.
Documents required to transfer the title of inherited property
The legal heirs have to submit documents such as:
- Death certificate of the deceased: This document proves the demise of the property owner.
- Birth certificate of the legal heirs: This document helps establish the heir’s identity.
- Ration card copy (if applicable)
- Bank statement of the legal heirs
Property-related documents must be submitted, which include:
Original purchase deed of the property and registration documents. If this document is not available, an authorisation is required to procure certified copies of these title deeds from the jurisdiction registrar’s office.
Encumbrance certificate: An encumbrance certificate is an important legal document that proves that the property is free from any dispute, claim, or due. The document contains all transactions that took place with respect to the immovable property, including all sale, lease, mortgage, gift, partition, and release transactions.
Khata: A Khata is a document certifying that a property owner has paid all the dues and owns a legal property. The document contains details mentioned in the municipality/corporation records. These include proof of property taxes paid, type of property and conversions, if any.
The transfer of an inherited property requires the execution of appropriate documents, such as a sale deed, gift deed, or relinquishment deed, based on the nature of the transfer.
To establish the legal validity of a transfer, the transfer documents should be registered with the appropriate authority by paying stamp duty and registration fees.
Property mutation
The next step includes applying for mutation of the property title. Mutation is the process of recording the transfer of a title of an immovable property from one individual to another in the government’s land revenue records. For this, one has to approach the municipal authority office under the jurisdiction of which inherited property is located. The documents required and the fee for the mutation will vary from state-to-state.
Transfer of Property Deed
Legal heirs are required to submit the documentation to the local authorities after finishing the mutation process, including the mutation order.
Updating records
Legal heirs must update details in property tax records, utility bills and other documents to ensure a smooth transition. One may also approach a legal professional to seek advice regarding property inheritance.
FAQs
Can inherited property be transferred?
An inherited property can be transferred to all or any one of the legal heirs by following the prescribed legal procedure.
How can I transfer the ownership of property after death in India?
For the transfer of property, one must approach the sub-registrar's office with documents, such as the Will with a probate or succession certificate. In case of the absence of a Will, the legal heirs must submit a no-objection certificate. After completing the property registrations in the name of the beneficiaries, one can apply for mutation of the property title.
Who has the rights over inherited property?
According to property inheritance laws, class-I legal heirs, which include parents, spouse, children, and their successors, have the right to inherit the property of a person after his death.
Can I transfer title of an inherited property?
Yes. One can follow the prescribed legal procedure to transfer the title of an inherited property.
Can an NRI transfer title of an inherited property?
An NRI can transfer the title of an inherited property through Power of Attorney (PoA).
What is the difference between an ancestral property and an inherited property?
An inherited property refers to a property inherited through a will after the owner's death, or a property received as a gift. On the other hand, an ancestral property is inherited by birth.
Can an inherited property be sold?
Yes. An inherited property can be sold, gifted, or bequeathed.
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