WHAT IS PROPERTY REGISTRATION
A property needs to be registered for the purpose of sale, transfer,gift or lease in accordance with Registration Act,1908.As per Section 17 of the Registration Act, 1908, all transactions that involve the sale of an immovable property for a value exceeding Rs 100, should be registered.If someone doesn’t register a property while doing above mentioned transactions then the transaction cannot be proved in the court of law.E-registration of property has been made simple with LegalDocs.
DOCUMENTS REQUIRED FOR PROPERTY REGISTRATION ONLINE
Along with the online filled form we need to attach following documents
Identity proof of parties involved(Aadhar Card,PAN card etc.)
Two passport photographs of parties involved
Power of authority in case the party is representing someone else.
If the party is a company then power of attorney/letter of authority, along with a copy of the resolution of the company’s board, authorising him to carry out the registration,certificate of incorporation
proof of payment of stamp duty and registration fee
Documents that have to be mandatorily registered, should be presented within four months from the date of their execution, along with the requisite fee. In case the time limit has expired, you can make an application to the sub-registrar for condonation of the delay, within the next four months and the registrar may agree to register such documents, on payment of a fine that may be up to ten times the original registration fee. The registration fee for property documents is 1% of property valuation, subject to a maximum of Rs 30,000.
STEPS TO TAKE BEFORE REGISTERING A PROPERTY
An encumbrance is a thing which creates difficulty in transfer of property registration details from one owner to other for example outstanding mortgages, liens on real estate,unpaid property taxes etc.A buyer must check for any encumbrances on the property before buying and should get the property cleared from any encumbrances.This can be checked at the sub registrar’s office within whose jurisdiction the property comes.
Chain of Documents:
Any buyer should check for all the chain of documents before buying a property.Chain of documents are the documents which specify when and how the property has been transferred from one owner to other.
Payment of Dues:
Any property should be free from any dues like property taxes,electricity bills, water bills etc. It is the responsibility of the buyer to check this before registering the property.
Preparation of Deed:
A draft of the deed(Sale Deed,Lease Deed,Gift Deed etc.) that needs to be executed must be prepared on which the details of all the parties involved and the property involved along with terms and conditions must be mentioned clearly before registering the deed.
Stamp duty calculation:
Stamp duty is the fees charged by the government and it varies from state to state. Stamp duty is calculated on the basis of market value of the property involved.
After completing above mentioned steps execution of the deed takes place at the sub registrar’s office under whose jurisdiction the property comes by signing or thumb impressions of the parties involved on the deed.
ADVANTAGES OF PROPERTY REGISTRATION
Application for the mutation of the Title Deed:
Meaning of mutation is change in ownership of the title from one person to another.Due to mutation the new owner gets the property recorded in his name in the Land Revenue Department. This also enables the government to levy property tax from the right owner.
City Survey and Land Records Department is the governing authority on application for the mutation. After assessing the request for mutation, City Survey and Land Records Department decides the value of tax on the property and finally issues a letter of mutation in favour of the buyer.
Under Section 80C of the I-T Act, an individual/HUF assessee is eligible to a deduction of stamp duty, registration fee and other expenses for the purpose of acquiring a house. This deduction is from gross total income. The maximum limit of deduction under Section 80C every financial year is Rs 1 lakh.
A Registered Title gives a quick up-to-date official record of who owns the land and individuals do not have to do any research as to the history of the title to the land i.e. what in layman terms is ownership.
A Registered Title is state guaranteed. If you have suffered a loss of an estate of interest in land property information because of a mistake or omission in the register by the Registrar you may be able to get compensation.
Disputes regarding the ownership or rights over the land might be resolved more easily.
Once registered by plan each title is given an official plan of the land, and this can be used to prevent any encroachment by trespass on the boundaries.
5 important things you should know:
Know the Sub-Registrar in the Locality
The Sub-Registrar is the main point of contact in this entire procedure or you can consider this gazetted officer as the start point. He will ask for all the necessary documents for registration and this happens in the presence of both buyer and seller of the property. The registrar checks various important aspects about the documents like:
Date of certificate or embossing
Classification of nature of documents based on The Stamp Act and The Registration Act
The Stamp Duty
Support Documents, such as RTC, Form 60 and 61 PAN, Form No. 1, to list a few
Real Market Value
The sub-registrar who verifies and initiates the registration process needs to know the real market value of the property. It’s not only him but you as a property seller or the potential buyer should also be aware of the real market value. The value is that estimated by the Market Value Committee or consideration. If both the parties do not agree upon the set value then you are free to make an appeal to the District Registrar. Apart from this, you also need to have an idea of the ‘KHASRA’ of the plot/house from the sub-registrar or the registrar.
The Property Title
This is one aspect that you need to know if you are planning to make an investment in a property. The property title includes knowing the origination of the asset; whether it is being transferred from the developer or the seller. This is required to be known by you otherwise if the title of the property is not clear and marketable then banks may refuse to support you financially. A bank or a housing finance company undertakes the due diligence process before it can approve the project and the loan.
This very process also requires for the buyer to get a No-Encumbrance certificate from concerned registrar.
The Sale Deed
The Sale Deed is another very important document that is formulated between the buyer and owner; developer may also come in, if applicable. You have to visit an authorized attorney to get the sale deed prepared and duly signed. The Schedule of the property has to be correctly mentioned in the Sale Deed and if any structure is situated over the landed property then that also has to be marked in the Sale Deed with the associated cost.
The Procedure is City Dependent
It is very important for you to understand the fact that the property registration procedure varies from state to state. For instance, property registration in Mumbai and Ahmedabad is easier to a little extent than in Chennai. If you are planning to buy a house, land or putting up your house for sale in Chennai, then at both the sides the procedure is little elaborate. Unlike Mumbai and other Indian cities, you can obtain stamp paper from stamp vendors. This is otherwise an eased step in the procedure followed in other cities.
The Alteration of the Property Title
This activity comes in action once the registration is complete. You have to apply to the local municipal authority in order to get the title of the property and get that transferred to your name. This is commonly referred to as mutation of the title of the property. The process today has gone completely automated and this has made the registration procedures, extremely easy. You can easily download the form online or can be obtained from the concerned authority’s office.
Few Handy Tips
Here are some of the handy tips that are add-on to the guide:
If you are an NRI, then make sure that you have all the documents and identity proofs of the other country ready.
Make sure that you are aware about the owner or the seller of the property and also that the asset is free of loans and liabilities or not. This goes for both, natives and NRIs.
Before purchasing any property, you have to ensure proper research work and buy the asset through genuine and authentic seller, developer, brokers or agents.
Never underestimate the effects of the feedback the local natives can offer you. The people residing in a particular area can very well tell you about the region and reputation of the seller
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