Legal Terms in Real Estate -Terminologies & Words (A2)
A2. Ownership and Transfer Documents
7. Title
Title is a legal right granting the ownership rights or transferring interest of a property to a person or entity through a deed.
8. Deed
A deed is a legal document that is used to transfer the rights of property in real estate transactions. The name of the seller, buyer, detailed property description, and signatures of both parties are essential to ensure the deed is legal.
9. Title Deed
A title deed is a formal, legal document explaining how a property is transferred, inherited, owned, or allotted by a government authority. It outlines the information of the amount of land owned by a person and the rights of ownership
10. Absolute Title
An absolute title (or perfect title) of a property gives the definite legal ownership and right to the owner of a property in which they can sell, rent, or lease out the property as they wish. It also denotes that the property is free from any encumbrances and is evidence that the holder of an absolute title has full ownership rights to the property and it cannot be contested or disputed by anyone else.
11. Affidavit of Title
The affidavit of title is a sworn statement provided by the seller to explicitly state the legal status of the property, including that they are the legal owner of the property, outstanding legal issues against the property, etc.
12. Chain of Title
The Chain of Title is the official record of ownership of a property and is important in tracing the historical transfers from the current owner to the original owner. The accurate title records are maintained by a centralised registry.
13. Assignment
An assignment is a legal term to indicate the transfer of rights and obligations of a property from one party to another, before the legal ownership of the property is transferred.
13a. Assignor
An assignor is a person or entity who passes on or transfers the rights and obligations of the contract assignment to a third party, called the ‘Assignee’. They are the original party of the contract assignment and they hold the authority to limit the assignee’s scope of operations to the real estate property, real estate investment, intellectual property, or anything else that the assignor wishes to “assign” to the buyer.
13b. Assignee
An assignee is a person or entity who agrees to receive the transfer of rights and obligations from the ‘assignor’ (the original party) as per the terms of the contractual assignment. An assignee is generally not the original party in the contract assignment and will need to relinquish their rights if the assignor wishes to pull back the contract.
14. Power of Attorney
Power of attorney is a legal document authorising another person (known as an agent) to take actions and decisions on behalf of the principal (the person who created the authorisation). If the property is being sold through a Power of Attorney, it is essential to verify the Power of Attorney document's validity.
15. Sale Deed
This legal document acts as proof that the property has been transferred from the seller to the buyer. It should be duly stamped and registered.
16. Agreement to Sale (ATS)
This is an agreement made between the seller and buyer that details the prices and terms of the sale of the property. An Agreement to Sale document is not the same as the Sale Deed and it acts as the foundation for the Sale Deed will be drafted.
Courtesy: ASSURE SHIFT
Comments
Post a Comment