Inherited Property Purchase on Your Mind? Essential Steps to Remember

Inherited Property Purchase

When investing in inherited property, use prudence and examine all factors to verify the ownership's validity and guarantee the property is free of legal disputes. Take these procedures to ensure a lawful and fair transaction.

Buying a house is an aspiration shared by many. When purchasing a home via direct sale or resale, the purchaser must be attentive. In the event of resale, particularly of inherited property, there are several technical and legal considerations. In reality, the majority of conflicts involve inherited property.

The distinction between inherited and ancestral property

The property that is inherited from birth is known as ancestral property. Inherited property is any property that a person inherits via a will or gets as a gift after the owner's death. It may be obtained from any member of the family. But, properties inherited from your mother, grandmother, uncle, brother, or other relatives do not qualify as ancestral properties. Only property inherited from a father, grandpa, great-grandfather, or great-great-grandfather is considered ancestral property.

Vigilance is crucial

If there is a disagreement over an inherited property, the seller will often want a large proportion of the token money. A purchaser should instead pay the bare minimal amount of token cash. If the buyer is unsatisfied with the title of the inherited property and subsequently discovers that it is a contested property, s/he may terminate the transaction without incurring any losses.

Sometimes, though, an heir with stronger rights to purchase the property than the prospective purchaser may surface, or the seller may not be the only owner.

A property expert, Jatin Nadiar, says that in transactions involving inherited property, the conflict may not always emerge directly between the legal heirs and one has to check all angles of possibilities. This can be done by appointing a professional lawyer with an expertise in inherited properties. 

Check for Redevelopment plans

While the majority of ancient residential buildings in Mumbai are slated for renovation, the practise of purchasing inherited homes has risen, as they provide substantial financial returns.

When purchasing an inherited property, according to M. Ahuja, a real estate developer, one should determine if the property will be redeveloped. Moreover, inherited homes are often bigger and more roomy. In addition to the aforementioned factors, it is essential to examine the succession papers, indemnification clause, and court cases to guarantee a smooth acquisition.

Verify the Title, ownership history, etc.

For each property transaction, it is vital to understand the history of the transfer. If you are purchasing a property from many sellers, it is not required that all sellers have equal rights to the property. You should only pay according to the percentage of ownership shown on the succession document. One should be wary of forgeries, such as succession certificates, and verify the validity of the papers, if possible retaining the originals.

A buyer should include all the lawful heirs of the deceased as confirming witnesses. The selling deed should be signed by all legitimate heirs.

A real estate expert, Manish Goley, states that a buyer must verify all paperwork relevant to the property's succession and have all documents (title, etc.) examined at the sub registrar's office. One must also examine the evolution and payment of property taxes throughout the years to ensure that everything is in order. If the property is being transferred via Succession, the buyer must examine the original owner's death certificate and the legal heir certificate issued by a competent body.

Verify that the owner has paid all property-related taxes as a further essential element.

A broker, Allwyn Joby, adds that a prospective purchaser of an inherited property must also verify the mutation and payment of property taxes in the owner's name.

Before signing on the dotted line, it is advisable to get competent legal counsel and have all paperwork reviewed.