Overview | Registration Laws | Key Things | Documents | Process | Influencing Factors | Online Registration Tips | FAQ
Have you ever purchased property? If yes, you must already be aware of the importance of property registration. It is compulsory to register your property as it is only then that you will be deemed as the owner of the property. So, here we are going to share the right details with regard to property registration and let you know why you need to do so and how to approach the whole method. There is of course a specific process and method that you need to follow and we will be sharing the guidelines with you for that purpose.
Section 17 of the Registration Act 1908 governs the whole process of land registration. You will need to carry out land registration whenever you are involved in either the sale or purchase of immovable property. If you do not carry out the registration process, you will not be deemed as the actual owner of the land and should there be any legal dispute, you will not be able to challenge it in a court of law.
Is It Compulsory To Execute Property Registration?
Yes, it is mandatory to carry out property registration when there is a property transfer. This has been made legal in section 17 of the Registration Act. The only case wherein you don’t need to register the property is when the value is less than Rs. 100
You need to pay the registration fee along with the stamp duty charges and then the property registration is done. The charges for stamp duty and registration can vary from one state to the other. You need to be mindful of the charges that you are paying.
The Laws Of Property Registration
Here are some of the laws that are applicable for property registration in India
The Registration Act, of 1908
Under section 17 of the Registration Act, 1908; any property that is bought or sold at a value above Rs. 100 needs to be registered under the books of law. If it is not registered, the buyer will not be deemed to be the owner as per the law. They will not be able to move the court in case of any dispute and therefore won’t be able to prove their ownership in absence of the document.
The Indian Stamp Act, 1889
It is compulsory to pay the stamp duty charges on the property documents that need to be registered. This is also a mandatory charge that is a part of all property buying and selling processes.
You can also check out the Property Act, 1982
The Key Things To Check
The whole process of property registration can get tricky and it is important to know about some of the important things beforehand. Being aware of these details will prepare you well when you set out to buy a property. Make sure you check out this list once to get a fair idea of what to expect when you set out to buy a property and thereby be involved in the property registration process.
You have to be sure that you meticulously cross-check all the documents that pertain to the ownership and transfer of property. The last thing you want is to realize that you ended up buying a disputed property or a property that already has plenty of debt over it. So, the smart thing to do is to check the meticulous details of the document and be sure of the facts.
Before you finalize your call to buy a property, make sure that you check for all kinds of clearances. The water bill, taxes, rent, mortgages if any and electricity bill should all be cleared. If they are not cleared, the new owner will then have to bear the brunt of these charges.
Stamp Duty Calculation
The next thing you need to do is check out what the stamp duty charges are going to be. Different states have slabs for calculating stamp duty. So, you have to check out the different details and you can make use of a stamp duty calculator for the sake of assessing the net charges that will be incurred.
Preparing The Deed
You need to be sure that you are checking out the different parts that are going to be a part of the deed. You have to check out the terms and conditions, the buyer and seller details, and more. Make sure to check the nature of the deed be it the sale deed, gift deed, or even the lease deed.
The Encumbrance Certificate
The role of the EC is to ensure that the property is free from all types of legal disputes and mortgages. So, it is absolutely important to check this document before you decide to buy a property.
So, these are the things you will need to duly check to ensure that you have all the details handy with you. Buying a property is no easy affair and you need to be mindful of all the clauses. Make sure you at least check all of the above things before finalizing the decision.
The Documents Needed
When you are carrying out property registration, one of the important things is to submit all the required documents. Here, we are going to share the list of the documents that are mostly needed. You should always double-check all the documents needed before you head for the registration process.
It is compulsory to register the documents within four months from the date it has been executed. If this time lapses, you will then need to send an application to the sub-registrar and state the reason why it was delayed. Even if the sub-registrar agrees; it is highly likely that you will need to pay a penalty. The whole process of registration can take up to a week. If you live in a metro city, it may speed up and get done in 2 to 3 days.
Here are some of the documents that you will have to keep handy
- Photographs of both the seller and the buyer
- ID proof of both the parties involved including Aadhar and pan card
- The latest property registers card copy
- A copy of the municipal tax bill
- The power of attorney
- Sales deed copy duly verified
- The no-objection certificate
- The payment receipt of stamp duty and registration fee
- The construction complete certificate
So, have these documents handy with you and you should be able to get done with the property registration process.
The Process Of Property Registration
If you are looking to register a property, here are the instructions and steps you need to follow.
- Estimate the net property value using the ready reckoner rate or the circle rate in that area
- Once you have checked the value of the property, you then need to buy a non-judicial stamp paper. You can either buy it online or from a licensed stamp vendor
- Analyse the type of transaction it is and the deed needs to be typed on the stamp paper. Choose whether it is a sale deed or a gift deed
- In order to register the deed, the seller and the buyer need to approach the office of the sub-registrar. It is important for two witnesses to be there too, one from each side.
- Make sure to take all the necessary documents along with you. The witnesses too need to carry their picture and ID proof
- You need to pay the registration fee before the registration process kickstarts
- When the documents have been duly verified, a receipt will be issued upon successful registration.
- You then need to visit the registrar’s office after two to seven days for collecting the deed
Factors That Influence The Property Registration Charges
Here are some of the different factors that play a key role in governing the registration fee of the property
The type of property
The type of property holds an important role in determining the property registration charges. Commercial properties usually have a higher rate as compared to residential ones. This is because the commercial ones need more amenities and facilities.
The age of the property
If you are buying a new property, the registration charges are going to be more as compared to an older one. This is because time tends to depreciate the value of the property from time to time.
The type of transfer
If you choose to register the property as a gift deed, or even if the title is transferred to a family member, the registration charges that you will have to pay are going to be less. The government will charge a registration fee if the property is purchased from a non-family member
The gender of the owner
Some states offer a rebate on the registration charges if the property is registered under the name of the woman
The registration charges are going to be high based on the amenities that are offered on the property. The properties with a lot of amenities like clubhouses, gyms, and pools tend to attract higher property charges
The location of the property
The location of the property plays a pivotal role in governing the registration charges. If your property is located in metro cities, it tends to attract a higher charge as compared to those present in rural ones.
So, these are some of the key factors that you need to keep in mind when you are looking to register your property. We believe that when you keep these points in mind, you will be able to spot the right property that is going to suit you best.
Tips For Online Property Registration
You can also choose to register your property online these days. If you are going to opt for online registration of property, here are some of the tips and guidelines you need to know of.
- Make sure to check if the state wherein your property is located has an online property registration portal
- If an online portal is present, you will be able to avail of the following services
- Checking the stamp duty rates
- Paying the stamp duty and the registration fee charges
- Receiving the payment receipt online
- Now you need to head to the sub-registrar’s office with the payment receipt and get done with the registration process
- If the value of the property exceeds the value of Rs. 50 lakhs, you need to pay TDS accounting for 1% of the property value
- When you are carrying out the only registration, make sure to add the right details like the name, address of the owner, the type of property, the description of the property, the proof of ownership and more.
Which law governs the process of property registration?
In India, we need to abide by the Registration Act, of 1908 when it comes to property registration
What is the time frame for registering the property?
The property registration needs to be executed within three months mostly. If not, you need to submit a letter to the registrar citing the reason for the delay. It is likely to trigger some penalty charges.
Is it compulsory to carry out property registration?
Yes, as per the rule, any property with a value above Rs. 100 needs to be registered or else it is considered to be an offence. The new buyer will also not be treated as the owner if there are no registration papers to prove so.