What does the term Freehold Property mean?
A property where title paramount has conveyed the property in favour of the purchaser by conveyance/ sale deed with no restriction on the right of the holder of the property to further transfer the property. Record of ownership of the freehold property can be ascertained from the office of the sub-registrar. It can be transferred by registration of the Sale Deed.
When ownership rights for a piece of property are given to the purchaser for a price, that property is referred to as Freehold Property. Unlike in the case of leasehold property, no annual lease charges need to be paid and the freehold property can be registered and / or transferred in part(s). • Are there any benefits in converting a leasehold property to a freehold one? There are several benefits: if you convert the property to a freehold property, you become a full-fledged owner by getting the sale deed and having it registered. A freehold property has better marketability and can be sold, mortgaged or kept for standing security, which cannot be done with leasehold property. • Are there any income tax considerations `while transferring newly acquired property? If the transfer takes place within three years of purchase, the income tax exemption under Section 54F of the Income Tax Act does not hold good. • What constitutes conclusion of sale of a property? An agreement of sale, couple