Read this blog to know the processes involved in registering a property in the name of a minor in India.
It is the desire of every parent to give their children the best head start in life. It begins with basics like providing a home with conducive conditions for their growth. You may also introduce your children to the family business so they can acquire skills critical to furthering the family legacy.
If you can afford it, one of the best ways of securing your children’s future is by buying for them an asset. Registering Property such as land and houses are fixed assets, whose value is always appreciating. It is one of the safest investments you can make toward the success of your child’s future.
According to law, minors are not allowed to buy or own properties, except in instances when the said property is gifted to the child. However, it is possible to Register a Property in the minor’s name. Whether you desired to give your child part of their inheritance early, or want to make sure they get their inheritance in case something happens to you, you can register a property in the name of a minor. Is this your first time registering a property in the name of a minor? You can relax because it is not as complicated as you may think. This article will take you through the process step by step.
Who is a minor and can they own property?
According to the law, a person under the age of 18 years of age is considered a minor in India. However, in some circumstances, especially where crime is involved, a person below 18 years (typically 16 or 17) can be charged as an adult in a court of law. In all states of India, people below 18 years of age cannot enter into a contract. Minors are not obligated to fulfill contracts under the law. Property transactions are legally binding contracts, and therefore can’t be signed by minors. That is why minors cannot buy property. However, people under 18 years can own property if it is gifted to them.
Can You Register a Property in the Minor’s Name?
It is possible to register a property in the name of a minor, however, the said minor must be represented by the guardian. After the property has been purchased and registered, the guardian will have no authority in the future to repossess or sell the said property, except if granted permission by the court.
How to Register a Property
When purchasing a property, you must transfer the property from the name of the current owner to your own. And, if you want to give your child an inheritance in the form of property, you may have to transfer ownership to them. The process of registering a property in India is done according to the registration Act of 1908. All states in India are obliged to follow this law except for Kashmir and Jammu. The ownership of any property can only be legitimized through registration. The process of registration is not complicated, especially if you’ve all the necessary documents. It starts with validating the title, determining the value of the said property, paying required fees (stamp duty and registration), and then filing documents with the registrar.
7 Steps to register a property in a minor’s name
The processes shared below are the same followed when generally registering property in India. It is possible to do it by yourself, however, you may need the help of a lawyer in some cases.
- Step 1: Do due diligence about the property to be sure its ownership can be transferred to you. For example, you may not be able to register a property if there are pending legal cases pertaining to the ownership of the said property. You’ll also not be able to register a property if it was acquired through fraudulent means.
- Step 2: Gather and organize all documents related to the property. This may include agreements about the property, the title, survey documents, details of the current owner, payment receipts, and other documents involved in the transaction. You should also have documents that prove you are eligible to own a property in India.
- Step 3: Check to verify that all required dues as pertain to the said property are cleared to zero balance. The main concern here is the property tax, however, if it is a rental or commercial property, you must ensure all utilities are paid. You don’t want to inherit someone’s heavy electricity or water bills.
- Step 4: Once you are sure all dues related to the property document verification are cleared, you can go ahead and start preparing the property. This is a legal document that governs transactions related to properties. It includes details of ownership and other critical details about the said property. If you are planning to register the property in the name of a minor, their name should be placed as the owner but under your guardianship. You’ll sign the document on their behalf, they’ll only be able to take full control once they are 18 years and above.
- Step 5: Pay stamp duty for the property. This is a form of the property tax levied on app properties in India. It is calculated based on the current value of the said property. Once the value of stamp duty is paid, you can purchase the necessary stamp papers at the local office or online.
- Step 6: This is the step where you go to the sub-registrar’s office for the final registration process. You are required to go along with two witnesses. Each of the witnesses must have identification documents and passport-sized photographs. Make sure you don’t forget to bring along the property deed plus at least 3 copies of the same. If you have all the required documents, the registrar will register the property deed.
- Step 7: It takes about 7 days for the registration to be complete. Once the registration process is complete, you’ll be presented with a receipt.
Registering property in the name of a minor is not difficult. As long as the person representing the minor is legible to own land in India.
Conclusion
It is the pride of every parent or guardian to furnish their children with everything they need to succeed in life. One of the best ways to secure your child’s life is by registering property in their names. As you have read above, the process is not sophisticated. You are only required to facilitate the registrar with some documents such as land deeds, tax documents, and identification details of all people involved in the said transaction. If you still have doubts or need help in registering a property in the name of a minor, get some help from Vakilsearch.
Read More:
