The Private Client team at Cyril Amarchand Mangaldas shares their comments and opinions in an article in the following Q&A which was published by the Mint Newspaper on 9th March, 2022 and the online edition of the same can be found here.
My father had booked a flat in Mumbai many years ago but died before he could get possession. A year later, the builder handed over the flat to my mother, who currently lives there. The flat is still registered in my father’s name. What are the legalities involved in transferring the flat to her name. Also, should I have to give a NOC or power of attorney (POA) to my mother?
— Name withheld on request
We have assumed that you are a Hindu by faith, and that your father died intestate, i.e., without executing a valid Will. Accordingly, the rules of intestate succession enshrined in the Hindu Succession Act, 1956, would apply.
Broadly, you would require (i) PAN and Aadhar card of your parents; (ii) title documentation of the property in question; (iii) electricity bills and water bills; (iv) legal heir certificate / succession certificate, as may be applicable in your case. The more formal requirement may include a grant of letters of administration, certifying that the property has devolved on your father’s class 1 heirs (i.e. his widow + children (and his mother, if alive)
It is advisable that you execute a relinquishment deed (also known as a release deed) or gift deed in favour of the desired legal heir(s) who will take over the property. This relinquishment deed/gift deed, as the case may be, should be stamped and registered with the concerned sub-registrar of assurances. It is advisable to speak to your attorney and draft a suitable deed and calculate the stamp duty and registration costs accordingly. In the present case, you may not be required to execute a PoA.
Your mother would not be required to pay any registration fees for her share inherited from your father. In case, you wish to execute a relinquishment deed to transfer your share in favour of your mother, relevant stamp duty and registration charges would be required to be paid on such transfer. You would be required to pay stamp duty only upon execution of the relinquishment deed.
Apart from the statutory costs as above, other costs may include legal fees + fees for any other consultants used.