Knowledge Bank

# Freehold procedure

Freehold is a way to clear the title of ownership of the property. It enhances the value of the property. It grants the conveyance deed to the owner as a final document. A property can be converted into freehold status from the concerned authority such as DDA, L&DO etc.

Concered Authority

Concerned authority means and refers to the authority under which the colony/ area of property lies i.e. the Lessor body which allotted the property. There are several authorities such as DDA, L&DO, NDMC which provide the scheme of freehold. The initial procedure of freehold is almost same in all the departments with minor variations.

Procedure

- STEP 1 - Submit Documents

Once the documents are submitted in the concerned authority, they are scrutinized by the department in various channels. The deficiency, if any, is reported to the applicant through post. This deficiency is to be fulfilled by the applicant. Some of general deficiencies are dues of ground rent, maintenance charges, mismatch of signatures, unclear photocopies or photocopy without back side of the stamp paper, blank columns of witnesses etc.

Once the deficiency(ies) is/are removed, the authority again starts channel of checking the documents and any further deficiency, if any, is informed to the applicant. This cycle continues until all the deficiencies are removed.

Conveyence Deed

After removal of all the deficiencies, the authority issues four copies of conveyance deed. Certain variation exists at this stage, while DDA issues Conveyance Deed for stamping and ask the applicant to re-submit them after stamping, L&DO executes the Conveyance Deed and directs the applicant to get it stamped and registered and submit a copy of registered conveyance deed only.

- STEP 2 - Stamping

Stamp Duty is a payment to the government for the transaction which is taking place. This transaction (here) is conveyance of the property from the authority to the owner of the property (original allottee or agreement holder). This duty is paid to the collector of stamps.

Submit the file in Collector of Stamps Office and receive the Challan titled TR 6. Deposit Payment as mentioned in TR 6 either by Cash or by Cheque/ Pay Order/ Demand Draft. After depositing payment, get the date of receiving file from Collector. On the due date, collect the file from the collector of stamps and check whether it has been properly stamped on every page of the conveyance deed.

In Case of DDA stamped conveyance Deed are re-submited and then the authority calls the applicant for execution of deed. Once the execution has been done, the document need to be registered.

- STEP 3 - Registration

Registration is the process of presentation of party to the document physically in the office of the Sub-Registrar.

Fill the form of the sub registrar. Submit the form along with two copies of conveyance deeds. Get receipt of registration. On the date specified in the receipt, collect the document from the Sub-Registrar Office.

CONGRATULATIONS !!!....
Now, you have the absolute ownership title of the property.

# Mutation in MCD

The Mutation in MCD refers to change of name of the person in whose favour a property is assessed in the records of MCD as per their relevant act & rules thereof. The Mutation is only for the purpose of Property tax (House Tax) only and does not confer a legal title. It is the liability of the purchaser in case of sale and of the beneficiary in case of death to get the mutation done in the records of MCD.

An Application for mutation alongwith Rs.3/- Court fee stamp affixed on it is to be deposited in the concerned MCD office. The following documents are to be enclosed with the application.

Property Mutation in Delhi

Mutation/Sub-Division of Property in M.C.D.
List of Documents required for Mutation /Sub-division : -

(A) In Case of Sale-Deed :

Copy of Sale-deed
Indemnity Bond on Rs.100/- Stamp Paper.
Affidavit on Rs.10/- Stamp Paper.
Clearance of up-to-date Property Tax.

(B) In Case of Death :

Death Certificate (original)
Copy of Will or Succession Certificate.
Indemnity Bond on Rs.100/- Stamp Paper.
Affidavit on Rs.10/- Stamp Paper duly attested by Notary.
Clearance of up-to-date Property tax.

(C) In Case of Power of Attorney :

Application for mutation with Rs.3/- Court fee stamp affixed on it
Indemnity Bond on Rs.100/- Stamp Paper.
Affidavit on Rs.10/- Stamp Paper.
Clearance of up-to-date Property Tax.

The above procedure and rules and regulations are governed by the Municipal Corporation of Delhi under the respective Act and rules, which are subject to modification from time to time.

# Stamp Duty in Delhi

S.No.	Type of Document	Stamp Paper value
1.	Will	Nill
2.	Indemnity bond	100
3.	GPA	50
4.	Special Power of Attorney	20
5.	Release Deed	100
6.	Adoption Deed	50
7.	Partnership Deed	1 %
8.	Trust Deed	3 %
9.	Sale Deed	Male 6%, Female 4%
10.	Gift Deed	Male 6%, Female 4%
11.	Partition Deed	2 %
12.	Mortgage Deed	2 %
13.	Lease Deed	2% upto 5 years, 3% 5-10 Year

{ % means the percentage of the amount set forth or the consideration agreed in the respective document }

a) Partition,Gift Deed, Sale Deed , Agreement to Sell , GPA , Will, Registration.
b) Property Documents Verification
c) Property Registration
d) Consultancy of family property matter