Immovable property inheritance can occasionally turn into a problematic situation. The number of legal heirs, type of property, a person's rights and share in the property, and family disputes all add to the complexity of the situation. There are certain important considerations and legal requirements to follow if you inherit property.
Obtain legal ownership
When you inherit an immovable property, getting the property officially registered in your name should be your top priority. Immovable assets such as plots, agricultural land, etc., must be mutated which means transferring from one person to another and transferring in the beneficiary's name in government/revenue records.
However, in order to claim the inherited property, you must have a convincing document—a "Will"—that establishes your right to the inheritance. When someone dies after making a Will, the executors are required by law to manage the estate in accordance with the terms of the Will, provided those terms do not contravene local laws.
Once the beneficiaries of the property have been determined with certainty, explicit settlement can proceed with clear documentation. The sub-registrar's office is where you must now apply for the transfer of property. Wills or Wills along with a probate or succession certificate are typically the key legal documents.
There may not always be 'Will'. In this situation, the beneficiary must get a "No Objection Certificate" (NOC) from other legitimate heirs in addition to an affidavit. In the case of an intestate inheritance, the legal heirs must obtain a certificate of legal heirs in accordance with the requirements of local law. If not, a competent court may issue a letter of administration authorising the administrator to manage the deceased person's property.
Just keep in mind that after ownership is transferred to you, you must register the property in revenue records in order to pay the property tax. In most cases, it happens at the office of the local municipality under whose control the inherited property falls. In addition, it's crucial to verify the ownership records of the relevant property. The process could be more difficult if the inherited property's documents are unavailable. You will need to look up the property's title in this situation, and you should definitely speak with a lawyer.
Examine your liabilities.
In some circumstances, an inherited property has unpaid loans. And it is not that unusual. Given the high land prices, it's possible that a bank loan was used to purchase the land or property. In this instance, the inheritor also receives the outstanding loan.
A property with an unpaid loan, however, can only be transferred with the lender's written permission. The insurance company would cover the remaining loan balance if the borrower had purchased home loan insurance. Make sure to request a loan clearance certificate from the lender along with the original documents that were mortgaged once the insurer has paid off the debt. If the inherited property is leased, the inheritor also agrees to the terms of the lease. After receiving the bequest, the inheritor becomes a party to any litigation or disputes involving the property.
AasaanWill helps Indian families with succession planning, and the most efficient way to do that is by writing a Will. We help you with your Will from the comfort of your home, allowing you to write a Will in less than 15 minutes for a fraction of the cost of hiring lawyers.
If you are considering succession planning, reach out to our legal experts for help.
(Disclaimer: This article is only published for informative purposes and is not to be treated as legal advice. The observations made by the Courts vary with circumstances and facts of each case.)