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Leasehold, Freehold
Conversion of Property from Leasehold to Freehold Page - 1 Page - 2
Leasehold, Freehold
Q1. What does the Freehold of Property in Delhi mean?
A.
Freehold of Property in Delhi means –Property (plot, plot with building constructed in it, DDA Flat, Group Housing Society Flat, Floor in a Kothi) with Absolute Ownership Rights. Various elements of Freehold Property are: -
Property is sold by seller to the buyer through Conveyance Deed / Sale Deed. Once the seller executes Conveyance Deed / Sale Deed and the same is registered before the Registrar of Documents, the seller is left with no right, title or interest in the sold property. Once the seller executes Conveyance Deed / Sale Deed and the same is registered before the Registrar of Documents, the buyer acquires Absolute right, title and interest in the sold property. Seller cannot impose any restrictions on the possession, occupation, enjoyment, constructions and management of the property by the buyer and the same are governed by the general laws like rules and regulations of Municipal Corporation of Delhi (MCD) or New Delhi Municipal Corporation (NDMC). There are no restrictions on the resale of property by the buyer. Resale can be affected through duly executed and registered Sale Deed. Freehold of Property in Delhi simply means acquiring perfect title in the property.Q. What does the Leasehold of Property in Delhi mean?
A.
Leasehold of Property in Delhi means –Property (plot, plot with building constructed in it, DDA Flat, Group Housing Society Flat, Floor in a Kothi) with various kind of restrictions imposed on the right of ownership. Various elements of Leasehold Property are: -
Property is leased (not sold) by Lessor to Lessee through Lease Deed.
Lease Deed is generally granted for a particular period of time, for example 99 years lease. Property reverts back to the Lessor after the lease period is over unless further extended. A lot of terms and conditions are imposed by the Lessor on the possession, occupation, enjoyment, constructions and management of the property. On the breach of any of such terms and conditions, the Lessor retains the right to terminate the lease. Legally the property cannot be sold. And hence, it gave way to the practice of selling the leased property through various registered / unregistered documents like General Power of Attorney, Special Power of Attorney, Agreement to Sale, Receipt, WILL, Affidavits etc. Title to the property is always imperfect. Banks are always wary of granting Home Loan / Loan against Property on leased property; even if the Home Loan is available, it is at higher interest rates than the property purchased through Conveyance Deed / Sale Deed. Now-a-days, the rates of stamp duty are same on both the Conveyance Deed / Sale Deed and Sell affected through registered General Power of Attorney.Read further ... Conversion of Property from Leasehold to Freehold in Delhi
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Last Updated: 18 July 2010