When a buyer acquires a property, the legal Registration of property takes place only when the immovable asset is registered under his name in the government’s records. Since the various monetary implications typically affect the buyer, this complex process also requires them to have a clear understanding of the laws that regulate such affairs in India.
The Indian Registration Act of 1908 governs the registration of documents. This law mandates the registration of various documents in order to ensure evidence preservation, fraud prevention, and title assurance.
Laws for registration of property
Is property registration mandatory?
The purchase of high-value residential units and plots is one of the many property-related transactions that requires mandatory registration. All transactions involving the sale of an immovable property for more than Rs 100 are subject to registration under Section 17 of the Registration Act, 1908. This effectively means that all immovable property sales must be recorded, as no immovable property can be purchased for less than Rs 100. The same rule applies in the case of a property gift. Despite the fact that the donor receives no monetary compensation in exchange for the property, the gift deed must be registered in order to be legally valid. Furthermore, all lease transactions lasting longer than 12 months must be registered.
When a party to a transaction is unable to come to the sub-office, registrar’s the sub-registrar may delegate any of its officers to accept the documents for registration at the person’s residence. The term “immovable property” refers to land, buildings, and any rights that come with them.
Documents that require mandatory registration
- Instruments of gift of immovable property
- Non-testamentary instruments or transactions that involve the sale of an immovable property for a value exceeding Rs 100.
- Lease of immovable property from year to year.
- Contracts to transfer immovable property for purposes mentioned in Section 53A of the Transfer of Property Act, 1882.
Documents for which registration is optional
Section 18 of the Registration Act, 1908 holds that the following documents may or may not be registered:
- Lease of an immovable property not exceeding 12 months.
- Documents of past transactions.
- Decree or order of court comprising an immovable property valued below Rs 100.
- Certificate of sale granted.
- Agreement of mortgage
- Promissory note.
- Instrument of partition by revenue officer.
- Grant of immovable property by the government.
Procedure for property registration
The property documents that need to be registered should be sent to the Sub-Registrar of Assurances’ office in the jurisdiction where the property that is the subject of the transfer is located. The seller’s and buyer’s legal signatories, as well as two witnesses, must be present for the documents to register.
The signatories should bring identification with them. Aadhaar Card, PAN Card, or any other government-issue proof of identity are among the documents that can use for this purpose. If the signatories are acting on behalf of someone else, they must also provide authority. If a company is a party to the agreement, the person representing the company must bring appropriate documents, such as a power of attorney/letter of authority, as well as a copy of the company’s board resolution authorizing him to complete the registration.
The property card, along with the original documents and proof of stamp duty payment, must be given to the sub-registrar. The sub-registrar will check whether sufficient stamp duty has paid for the property using the stamp duty ready reckoner before registering the documents. The registrar will refuse to register the documents if the stamp duty is insufficient.
Stamp duty is a tax paid to the government in exchange for obtaining legal ownership of an asset, whereas the registration fee is the cost of completing this legal formality in the government’s records. The amount of stamp duty varies by state. Women in most states are eligible for stamp duty exemptions.
It’s worth noting that witnesses are critical to the overall process. The two witnesses you intend to present during the registration will have to prove their identity to the sub-registrar as well. They should also bring their ID and address proofs with them for this purpose. During the process, their biometric identity will be scanned as well.
Time limit, fees for property registration
Documents that need registration must arrive within four months of their execution date, along with the applicable fee. If the time limit has passed, you may apply to the sub-registrar for a delay condonation within the next four months, and the registrar may agree to register such documents in exchange for a fine of up to ten times the original registration fee. The fee for registering property documents is one percent of the property’s value, up to a maximum of Rs 30,000.
Previously, the documents you presented for registration would return to you after a six-month period. The documents (bearing the registration number and proof that the documents have been registered by the registrar) are scanned and returned to you the same day, thanks to the computerization of the sub-offices. registrar’s
Registration charges in Indian cities
|Bangalore||1% of property value.|
|Delhi||1% of the total market value of the sale deed, plus Rs 100 pasting charge.|
|Mumbai||1% of the total market or agreement value of the property or Rs 30,000, whichever is lesser.|
|Chennai||1% of the market value of the property.|
|Kolkata||1% of the total cost of the property.|
Impact of non-registration of property
Failure to register a property purchase agreement could put you in serious danger. Any document that needs registration but isn’t can’t serve as evidence in a court of law.
It’s worth noting that unless your name appears in government records as the owner of a specific property, proving ownership may be difficult. As a result, property registration is a requirement for the buyer.
Furthermore, because unregistered properties have no legal standing, the owner risks losing the property even if he is in possession of it. However, the owner would not be able to claim compensation if the government were to acquire this property at any point in the future to develop an infrastructure project.
Online property registration
The buyer can complete a large portion of the property registration process online in most Indian states. Depending on your state, you may be able to use online services to complete part of the registration process. However, in order to complete the transaction, you must appear in person at the sub-office registrar’s with the seller and two witnesses. You must retrieve your registered property documents from this office once They have registered.
Can I register property online without going anywhere?
While most states allow you to complete a large portion of the property registration process online, the final formalities must complete in person at the sub-office registrar’s by all parties involved. The buyers can basically pay the stamp duty, provide all of the details, and schedule an appointment at the sub-office registrar’s using the online channels.