If you have a property or planning to purchase a new one, ensure to get it registered. It will help you to remain on the right side of regulations and laws. Let us see some important aspects associated with the property registration.
Important legal provisions of the property registration:
- The registration of documents relating to the transfer, selling, lease, or any other form of disposal of a property is required by law under section 17 of the Indian Registration Act, 1908.
- When a property is registered, it means that the person in whose possession the property is registered is the property’s legitimate owner, and is fully responsible for it in all ways.
- If the related documents are not properly registered then Section 49 of the Indian Registration Act, 1908 states that the documents will have no effect on the property and do not grant any land ownership rights. In other words, the law does not accept the owner who has not registered and gives him no land rights.
Whether the property registration is compulsory?
All transactions involving the sale of immovable property over Rs 100 should be registered in compliance with Section 17 of the 1908 Registration Act. This effectively means that all transactions involving the sale of immovable property must be registered, as no immovable property can only be purchased for Rs 100.
Additionally, all gift transactions of immovable property, as well as lease transactions for more than 12 months, are also mandatory to register.
For special cases, if a party to the transaction is unable to come to the sub-registrar’s office, the sub-registrar can depute any of its officers in that person’s residence to accept the registration documents. The word ‘immovable property’ covers land, buildings, and any rights attached to those properties.
Property Registration Procedure:
- Scrutinizing the title of the property:
- The documentation of property differs depending on the property, whether it has been bought from the developer or in the way of secondary hand sale. For the latter case, the due diligence would be much easier as all the documents related to the property will be held safely by the sole owner itself.
- However, scrutinizing the title of the property, layout, Encumbrance Certificate (EC) and other important documents lie with the buyer before registration.
- Property value estimation:
It is important to note that, you have to calculate the guideline value of the property where it is situated, for the payment of the stamp duty.
- Getting the stamp papers:
Now, you are required to buy the non-judicial stamp papers, which should be equivalent to the calculated value of the stamp duty.
- Preparing the sale deed:
This step involves the sale deed preparation and must be typed in the stamp papers. It can be prepared on behalf of the buyer, by an authorized attorney. The subject matter of the sale deed varies depending on the nature of the transaction, namely lease, mortgage, sale, attorney power, etc.
- Stamp duty & registration charges payment:
Once all the stamp paper-related procedures are complete, you can pay the correct stamp duty charges via the stamp collector. Similarly, registration fees must be paid before the property’s registration.
- Present before the sub-registrar for registration:
Now, choose the date, when the registration process must be done in the sub-registrar office with your seller. After choosing the date, go with the two witnesses to the Sub-registrar office.
The parties involved in this registration process are required to bring copies of their photographs and proof of identity. And shouldn’t forget to carry the two extra xerox copies of the original deed of sale.
- Submission of documents:
In addition to the sale deed, you are expected to apply the requisite documents such as No Objection Certificate(NOC) if the building is located in the land of city collectors, followed by ID proof, Address proof, DD or cash payment of the stamp duty, Passport size photos, etc.
- Completion of the registration:
The verification process will be finished after all the records have been scrutinized. Now you can collect the documents which are duly registered. Eventually, the registrar seals and signs all the original papers, which will be handed over to the buyer. The Sub-registrar office keeps the collection of copies of all the records.
The Registrar obtains the following documents to carry out the property registration procedure:
- Duly stamped signed and executed documents.
- The claimant of the sale document must put his signature in the sale deed and also make his appearance before the registering officer for registration of the sale deed.
- Patta transfer application with court fee
- PAN Card or Number
- Patta passbook
- An ID card for executant and claimant (for all deeds)
- An ID card for witnesses (for power deed only)
Along with the stamp duty, the buyer is required to pay the registration charges for the property. Some important things regarding the registration charges are listed below.
- The registration charges will vary from state to state and are calculated based on the saleable value of the property.
- Both the calculation of stamp duty and registration charges is done based on the guideline value prescribed by the respective state government based on the location of the property.
- The guideline value is the minimum value on which the property should be registered. No registration is allowed below the prescribed guideline value.