The transfer of immovable
property by way of sales, gift, will, releases etc., presupposes that documents
to the title of transferred immovable property are delivered to the transferee
on completion of process. This is statutory obligation. Section No. 55(3) of
Transfer of Property Act, puts this responsibility on the seller. But the
section has a provision, that in case where only a part of the property is sold
and the seller retains a part of the property the seller is entitled to retain
the original documents, and copies of such documents are delivered to the
purchaser.
In case, where the property is
transferred to different persons, in different lots, the transferee of greatest
portion is entitled to hold the original documents of title and others are
provided with copies of such documents.
In the circumstances dealt
above, the persons holding the documents, either the seller or one who holds
the greatest portion has some responsibilities. He has to keep the documents in
safe custody and in good condition. He has to make available the documents forinspection to other buyers, and also furnish the true copies of such documents;
extract from such documents, whenever required.
But the cost has to be met by
the buyer who needs such inspection or copies, extracts. These responsibilitiesof person who holds the original property are required to be recorded properly.
The document, which records
such obligations of safe keeping the documents; producing them for inspection,
providing copies, extracts is called “Deed of Covenant for Production of Documents”.
The deed of transfers like
sale, gift, will and release may contain such a convenant by the vendor in
favour of purchaser or a separate deed may also be executed by the vendor infavour of purchaser (or) after making the same covenants can be incorporated in
the sale deed.
In case of the person holding
greatest portion, a separate convenant deed about his obligations becomes
necessary. A separate deed in favour of each transferee of other portions or a
common deed in favour of all other transferees jointly may be executed.
In the deed of transfer of the
greatest portion or of higher value an explicit convenant, that, the transferee
shall safe keep the documents in good condition, produce for inspection of
other transferee and furnish true copies or extract should be included. Similar
relevant convenant should also be incorporated in deed of transfer of other
transferees.
Generally all the portions of
the property are not transferred at the same time, and the above suggestedprocedure may not be possible. In such cases, the transferor should give a
convenant of production of documents in each of the deeds of transfer and it
should further provide that if and when the transferor hands over the documents
to any other transferee at a later date he would procure a similar condition
from the such transferee. Under a convenant of production of document, the
original owner liable indefinitely unless a condition provides that he is no
more responsible after he parts with the remaining portion of the property.
Flats are constructed on land
and are sold to different purchasers. But the original title deeds for the
entire land, will be only one and cannot be given to each and every purchaser.
Each purchaser will get original sale deed, which is executed in his name and
registered. He will get copies of other original documents and not originals.
The original title deeds of the land will be in the custody of the Flat Owners
Association. The association has the responsibility of maintaining them safely
and make available the documents for inspection by the owners and to provide
copies, extracts the promoters or builder shall incorporate such clause in
individual sale deeds. The articles of the flat owners association shall
contain the clauses relating to safe custody, inspection and making available
the copies, extracts of the original documents.
Stamp Duty: in case the conditions is
including in the transfer deeds itself, no separate stamp duty is payable. If a
separate deed is executed, it attracts the stamp duty as that of an agreement
depending upon the stamp duty prescribed by the state.
Registration: this deed of convenant does
not required the registration, but it is advisable to get it registered.
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