Property Transfer

#1 Jul 9th, 2009, 20:15
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  • Old_Boots is offline
#1
Hello,

My father died last year and we are in the process of sorting out the Indian estate.
I am a UK citizen as was my father.Although he was born in India.
His ancesteral home (in the village he was born in) and a villa he built were left to me.

I just wish to know the procedure for actually transferring the property.
What I have been told by different people is as follows:

Our UK solicitor has said that he can find a lawyer in India who can transfer the property.

The problems this raises are as follows:
1/ it is very expensive, I do not want to be in a situation where I have to sell the property in order to get title to them, in order to pay the legal fees.

2/Corruption. I have no idea who to trust, property and land seizure are a problem where the house is. How can I be sure the Indian lawyer doesn't register the house fraudulantly/sell it ?
3/My UK solicitor is used to dealing with lawyers in countries where corruption is not so endemic.

The other advice I have been given is that I need to travel to India personally and have it transferred in my presence.
The documents I will require are:
Passport, Birth cerificate, fathers passport, death certificate.
Letter/affadavit from my solicitor stating that the property has been left to me as per the will.

I am not to worried about anyone just walking in and seizing it, I have enough local contacts to physically protect it. I am worried about documentary fraud Ie. illegal re registration.

Most people I have asked have said avoid the Indian legal system/lawyers at all cost because corruption and time delays will just make the entire experience horrendous.

I can only spare 7-8 days, can it all be sorted out in this time ?

Also am I an NRI or a PIO or something else ?

Can someone please advise.

Regards

Old_Boots
#2 Jul 9th, 2009, 20:47
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  • capt_mahajan is offline
#2
Given the time and stuff, get a good lawyer through the same Indian contacts who I presume are trustworthy. He or She will tell you what exactly (paperwork) you need.

Err, you are a person of indian origin,but not a PIO -that assumes you have a PIO card. And you are not an Indian (UK citizen), so you are not a NRI.

Factors that will come into play
-Is there a will?
-Is it registered?
-Is any sibling or other family member disputing your title?
-If you have siblings, will they give a No Objection Certificate to your taking over the house (can be a requirement in some states- I know of at least one incident where this was required)
-finally, all this will be done under the transfer of property act, I think.
http://dolr.nic.in/Acts&Rules%5CTran...yAct(1882).htm


You may be right in being apprehensive, but people pass away everyday in India, and the overwhelming number of inheritances pass on to legal heirs without any problems from outsiders whatsoever. Including property.

Most problems are family disputes under these circumstances.
.
This is computer generated drivel. No signature is required.
#3 Aug 27th, 2009, 09:41
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  • goodlife is offline
#3

Transfer of names

Hello

Does anyone know how to do this:
I have a property in Goa on lease hold, my friend has a property in Sri Lanka, we would like to transfer names without any money parting hands.

Can this be done?
In Goa and Sri Lanka at the same time?

Any advise anyone???

Thanks:
#4 Sep 14th, 2009, 16:17
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  • Stephen Jones is offline
#4
Quote:
have a property in Goa on lease hold, my friend has a property in Sri Lanka, we would like to transfer names without any money parting hands.
You're talking two completely different countries. If the person you wish to transfer the Sri Lankan property to is a non Sri Lankan then there will be a 100% tax on the transaction; the way to get round this is to have a 99 year lease instead of a freehold.

I bought land in Sri Lanka in 2003. I had then land already chosen but checking out clear title and redoing the partition took two months; I cancelled the flight to the UK and just got the partition plan from the council in the morning to enable me to rush over to the lawyer's office in Colombo in the afternoon to sign the contract. The registration of the deeds took another three months.

You can't do it without money changing hands. In Sri Lanka you will need to pay by bankers draft in front of the notary, as well as all appropriate taxes. If you could arrange for the lawyers in both countries to have your simultaneous presences (to the best of my knowledge only the seller is required for the transactions)then if you really trust the other guy you can both tear up the bankers draft over video link, but of course there will still be taxes to meet up front.

Bear in mind you're talking a few thousand dollars in lawyers costs at the very least as you're simultaneously dealing in both countries.

I can recommend you a trustworthy Lankan lawyer, but my advice is forget it.
#5 Sep 14th, 2009, 16:34
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  • goodlife is offline
#5

the goa/sri lankan swop

Hi
Thanks for the advise.
I've heard that a 99 year lease is not worth the paper its written on, as a non-sri lanka can only get a 15 year lease by law.
Have you heard anything?
Also why would you advise don;t bother?
have you had a bad experience with Sri Lanka?
I'm thinking since the the tiger problem is over it should boom over there???
What do you think about the company way of buying?
Thanks for all your advise
#6 Sep 14th, 2009, 18:10
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#6
First I've heard of differential length for leases for Sri Lankans and non Sri Lankans. When I bought the 100% tax had been repealed; they reintroduced it a year later. So the question of a 99 year lease never came about.

I've just done a quick internet search and can find no reference to the 15 year limit you mention. If you want more you'll have to spend $200 asking a lawyer.

I'm not advising you because of a bad experience in Sri Lanka. I'm advising you because I don't think what you're proposing is worth all the complications.
#7 Sep 15th, 2009, 18:41
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#7
Quote:
Originally Posted by Stephen Jones View Post First I've heard of differential length for leases for Sri Lankans and non Sri Lankans. When I bought the 100% tax had been repealed; they reintroduced it a year later. So the question of a 99 year lease never came about.

I've just done a quick internet search and can find no reference to the 15 year limit you mention. If you want more you'll have to spend $200 asking a lawyer.

I'm not advising you because of a bad experience in Sri Lanka. I'm advising you because I don't think what you're proposing is worth all the complications.
hi
The property agent which is involved in the swop, say 99 year lease no problem thats what every non-sri lankan does but I have another property agent who say's his lawyers say no such thing.
his words (DON"T DO IT) I've met this bloke before, English, really nice and he seems to know his thing in sri lanka.
I really thought and the agent involved thought that it would be a staight forward thing.
As a gift!!!
Any more advise, before I do something stupid???
#8 Sep 16th, 2009, 02:28
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#8
This is the web site of my lawyer:
http://www.srilankalaw.com/

I would agree with your friend who says don't do it: it's the swap that's the problem. Even if you were buying the leasehold with your own money there'd still be a lot of work to be done. Apart from anything else how would you value the plot?
#9 Sep 16th, 2009, 08:06
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#9
Quote:
Originally Posted by Stephen Jones View Post This is the web site of my lawyer:
http://www.srilankalaw.com/

I would agree with your friend who says don't do it: it's the swap that's the problem. Even if you were buying the leasehold with your own money there'd still be a lot of work to be done. Apart from anything else how would you value the plot?
MY problem is I have a property in Goa that is a year and a half old and I have not stayed in it for one night and looking at the near future will not.
My friend has a property in Sri Lanka which she does not want anymore they are worth nearly the same amount.
By the way she is a non-sri lankan, and I'm a non- indian.
We both want this to go ahead, if this is possible??
I don't mind if its hard to do as long as its possible??
Surely the hard work would be done by the lawyers and of cause they will charge for there hard work1!!
My friend/property agent who is in Sri Lanka said don't do it meaning the 99 year lease, buy another way.He seems to think the 99 year lease is illegal for a non-sri lankan.
What do you think?
#10 Sep 16th, 2009, 14:54
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There are varying references on the web to foreigners taking out 99 year leases, so I don't know where you friend is getting his information from. Here are three independent references.
Foreigners can freely buy properties as long as they are willing to pay the Land Tax for foreigners at 100% of the property value. An alternative is to lease the land for 99 years, bringing the tax down to 7%.
http://www.globalpropertyguide.com/A...a/Buying-Guide

If you don't want to buy and pay 100% tax alternatively you can also lease for a period of 99 years. No taxes, only 1% stamp duty. You can build and demolish anything on your land during that period of time. There is a way to make sure you can buy the property anytime later from the owner even if the owner might have changed his mind.
http://www.lankaland.com/facts.htm

Either a non-resident property investor can purchase a leasehold property with a 99 year lease and acquire the right to buy the freehold title to the property if the 100% taxation rule is ever rescinded. During the 99 year lease period an investor can effectively do what they like with the real estate subject to local council rules and regulations.
http://www.amberlamb.com/index.php/a...-in-sri-lanka/

If your 'friend' in Sri Lanka is trying to push you into the company route, I would run a mile; it simply brings in added layers of complication. And of course allows unscrupulous property agents and 'friends' to make a killing in commissions and plenty of other things.

I can only answer to the Sri Lankan side; somebody else will have to answer to the Goa side. I would strongly advise you to deal with my lawyer. Apart from anything else you will assured all legal documents will be drawn up in English. I also don't know the relationship you have with the owner of the Sri Lankan property. You would certainly need to come to Lanka to see the property, and spend maybe a couple of thousand dollars on a search to ensure there are no liens or partition cases on the property.

A lot depends on the values of the properties. It may be simpler to just sit on what you have unless we are talking about six figure property prices.

You must also answer the question of why you want the property. If it's for investment I'd say forget it. Hong Kong is full of Brits who got burnt buying Lankan property in the period 2003-2004.
#11 Sep 16th, 2009, 17:11
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#11
Quote:
Originally Posted by Stephen Jones View Post There are varying references on the web to foreigners taking out 99 year leases, so I don't know where you friend is getting his information from. Here are three independent references.
Foreigners can freely buy properties as long as they are willing to pay the Land Tax for foreigners at 100% of the property value. An alternative is to lease the land for 99 years, bringing the tax down to 7%.
http://www.globalpropertyguide.com/A...a/Buying-Guide

If you don't want to buy and pay 100% tax alternatively you can also lease for a period of 99 years. No taxes, only 1% stamp duty. You can build and demolish anything on your land during that period of time. There is a way to make sure you can buy the property anytime later from the owner even if the owner might have changed his mind.
http://www.lankaland.com/facts.htm

Either a non-resident property investor can purchase a leasehold property with a 99 year lease and acquire the right to buy the freehold title to the property if the 100% taxation rule is ever rescinded. During the 99 year lease period an investor can effectively do what they like with the real estate subject to local council rules and regulations.
http://www.amberlamb.com/index.php/a...-in-sri-lanka/

If your 'friend' in Sri Lanka is trying to push you into the company route, I would run a mile; it simply brings in added layers of complication. And of course allows unscrupulous property agents and 'friends' to make a killing in commissions and plenty of other things.

I can only answer to the Sri Lankan side; somebody else will have to answer to the Goa side. I would strongly advise you to deal with my lawyer. Apart from anything else you will assured all legal documents will be drawn up in English. I also don't know the relationship you have with the owner of the Sri Lankan property. You would certainly need to come to Lanka to see the property, and spend maybe a couple of thousand dollars on a search to ensure there are no liens or partition cases on the property.

A lot depends on the values of the properties. It may be simpler to just sit on what you have unless we are talking about six figure property prices.

You must also answer the question of why you want the property. If it's for investment I'd say forget it. Hong Kong is full of Brits who got burnt buying Lankan property in the period 2003-2004.
Big Thankyou for all your info, I actually felt like I'm going mad. I to have seen these sites on the internet, but the bloke I have met last year in SL and seemed nice, but is a (property agent) say's no way to a 99 year lease.
Maybe he just want's to go the long way round = expensive way.
I was just double checking the property agent selling the property with him as I have met him, and was going to use his lawyers not the property agents. just to be careful.
Really is there alot of people in HK who have got stung??
How have they got stung?
I actually want this property not as investment as a place to live sometime in the future, but for now to lease it out, not to live on.
Thanks for your lawyers details I'm now thinking of using them instead of "my friends lawyers"
Anymore advise would be greatly appreciated
#12 Sep 16th, 2009, 18:44
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#12
Presumably the property is a house and land; you don't state.

As far as renting it out goes there is a massive surplus of property to rent to foreigners in Lanka. Annual rents are around 3% of the property's value. Basically there are a large number of Lankans living in the west who have built or inherited property in Lanka, and there's a shortage of takers.

Think of renting it out as being a way of covering maintenance and looking after it expenses.
#13 Sep 16th, 2009, 18:50
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#13
Quote:
Really is there alot of people in HK who have got stung??
How have they got stung?
Stung is not probably the right word. What happened is that foreigners, a large number being Brits working in HK. bought up 400 of the 1600 properties in the World Heritage Site of Galle Fort. Many did it as a business investment intending to do up the property and sell at a profit, or set up a restaurant.

The reintroduction of the 100% tax has affected the possibility of selling on to another foreigner, and the proposed tourist boom hasn't materialized and is showing few signs of doing so.

Now, if you're buying the house as somewhere to live this doesn't affect you.


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