Property registration is an integral part of the home-buying process. However, the legalities and paperwork involved in the property registration process can confuse even the smartest of home buyers. From preparing the documents to paying the registration fee, a series of steps are involved. 99acres elaborates these steps to ensure a smooth property transfer.
When a buyer acquires a property, the legal change in ownership takes place only when the immovable asset is registered under their name in the government records. Registering the documents related to the transfer, sale or lease of a property is mandatory by law under Section 17 of the Indian Registration Act, 1908. The person in whose favour the property is registered becomes its lawful owner. If, however, the required documents are not duly registered, the law neither recognises the unregistered owners nor provides them with any right over the property. To give you a detailed idea about the procedure, we have categorised the steps involved in the property registration process and the documents required to ensure that it gets successfully and timely registered.
Check for encumbrances at the office of Sub-Registrar of Assurances
This can be done by taking a look at the title deed or ownership status of the property such as mortgages or liens. You should verify that the title deed is registered in the name of the person who is selling the property and all the documents are in place for the registration of the same. While investigating this, you must check the following aspects
- The legal ownership document must be in the name of the owner. This document is issued by the Revenue Record Department and bears the seal of the Tehsildar. A Tehsildar is a gazetted officer in charge of obtaining taxation from a tehsil (an administrative division).
- Records for the last 30 years must be checked to ensure that the property has no mortgage or other encumbrances as of the date of purchase.
- Ensure that the property is transferable and heritable and that the transferor/seller is authorised to sell it.
- Make sure that all dues related to payment of taxes, electricity bills and water bills have been paid till the date of purchase.
Preparation of the final deed by the buyer’s lawyer
It is the buyer’s lawyer who prepares the final sale deed of the property. The document is printed on green legal paper leaving the date and place blank and then submitted for stamping. The fee of the lawyer though varies, is usually one percent of the property value and the process takes around a week.
Payment of stamp duty
The buyer has to pay the stamp duty at the designated bank or authorised collection centre of the Stock Holding Corporation of India for stamping the Sale Deed. The charges vary from State to State but are usually around five percent of the true market value of the property. This value is calculated basis the rates of property published in the Ready Reckoner list issued by the Government of India annually. Once the payment is done, the bank issues a receipt and marks the first page of the printed Sale Deed with ‘stamp duty received’. This process does not take more than a day.
Execution of the final deed at the local office of Sub-Registrar of Assurances
This step is executed in the presence of the buyer, the seller and two witnesses at the office of the Sub-Registrar of Assurances within whose jurisdiction the property is located. Once the document is registered after the signatures of both parties and witnesses on the stamped deed, a distinct number is assigned to the documentation.
The documentation is then presented to the Reader of the Sub-Registrar of Assurances for scrutiny, who indicates the registration fee required. The fee is usually one percent of the transaction value or Rs 30,000 - whichever is less. The due registration fee is to be deposited with the cashier against a receipt and then the document is presented before the Sub-Registrar in accordance with Section 32 of the Registration Act, 1908. The documentation is returned to the buyer within half an hour. Subsequently, the seller hands over the physical possession (the keys) of the property to the buyer.
The property registration process requires the following documents:
- Duplicate copy of the document for registration
- Two passport size photographs, each of the buyer, the seller and the two witnesses
- Photo identity proof in the form of voter’s ID card and passport of the buyer, the seller and the two witnesses
- Certified true copies of Certificate of Incorporation of both seller and buyer, in case of a company and not an individual buyer
- Copy of the latest property register card to indicate that the property does not belong to the Government. This can be obtained from the City Survey Department
- Copy of the municipal tax bill to indicate the year in which the property was built/constructed
- Copy of the PAN Cards of the seller and the buyer (to be annexed along with the Sale Deed)
- Thumb impressions, photographs and signatures of the buyer, the seller and the two witnesses are mandatory
Apply for the mutation of the Title Deed
Mutation refers to the change in title ownership from one person to another when a property is sold or transferred. This is essential as it enables the new owner to get the property recorded in his name in the Land Revenue Department. This also enables the government to charge property tax from the right owner.
Application for the mutation is made at the office of City Survey and Land Records Department. The authorized signatory is required to submit the duly signed application form along with the affidavit, indemnity bond and a notarized copy of the registered Sale Deed. After assessing the request for mutation, City Survey and Land Records Department decides the value of the tax on the property and finally issues a letter of mutation in favour of the buyer.
Once the buyer attains the letter of mutation, s/he becomes the official owner of the property purchased. Since the process is very complex and involves numerous steps, it is recommended that you should take assistance from a qualified lawyer at Legal Assure.
Fees for Property Registration
The property registration fee for every state is different. Generally, the registration fee ranges between 1%-3% of property value, subject to a maximum of Rs 30,000. States also revise the charges from time to time.
Issues Faced in Online Property Registration
Online property registration is a boon, but it can also cause many inconveniences. In some cases, the website works so slow that it becomes difficult to operate a website. To receive the information, you will have to work for a more extended period. To receive the information, you will have to work for a more extended period. Also, technical glitch is a common issue faced by people using government websites for online property registration. We agree that India has moved to digital land registration. However, you will have to visit the SRO office to submit the documents and finish the process. Property registration is a mandatory step as per the Registration Act, 1908. The primary purpose of the Act is that legitimate land records are maintained. According to a new rule, an unregistered property does not have legal validity in court. To register a property, you must submit the documents within a stipulated period to avoid any delay.
Get property papers verified, Consult Property Registration lawyers for online Property Registration legal services in India. Get your Property Registration done by Legal Assure.
Frequently Asked Questions
The documents that are accepted for this purpose, include Aadhaar Card, PAN Card, or any other proof of identity issued by a government authority. The signatories also have to furnish the power of authority, if they are representing someone else.
If the property is not registered, the owner will be at risk because there is no legal evidence to claim ownership rights of the property. In case if the government acquires the property for infrastructure development, the owner cannot claim compensation.
You will need the following documents to register a property:-
1. Aadhar card
2. Photograph of buyer and seller
3.Copy of original sale deed
4. No Objection Certificate (NOC)
5. Property register card
6. Municipal Tax Bill copy
7. Completion certificate
8. Agreement between builder and buyer
The property registration charges vary for every property, as the charges are dependent on the property's market value. Generally, the charges are 1% of property value.
Documents mandatory for registration must be presented within four months from the date of execution, along with the requisite fees.
While some parts of the registration process can be completed online, final verification and payment must be made at the sub-registrar’s office.
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