It is one thing to purchase a property but another whole process to get it registered. It is very important to get all your documents in place before it can be finalised. In India, if you purchase any property that costs more than Rs. 100, it must be registered. The same rule is applicable in case of gifts. It is only obvious that there can be no immovable property under Rs. 100 so by that rule, all immovable properties have to be registered. Immovable property essentially means any and all property that cannot be moved or transported, eg. land, flats, buildings etc.
Drawbacks of not registering your property: If you do not get your property registered-
- Your name will not be in government records.
- It will be a total loss for you as you will not be the official property owner and not be able to avail any benefits from the property.
- In case of any dispute, you will not be able to claim it as your own.
Benefits of registering your property: The benefits of registering your property are:
- All details about the property value can be easily obtained from the SRO
- Disputes will be easily resolved
- The government will compensate the buyer in case of any loss incurred due to any error in registration by the Registrar and additionally
- The property seller will receive a tax deduction benefit under Section 80C of the IT Act
- The mutation process becomes easier
After the payment of the adequate stamp duty, the property has to be registered under Section 17 of the Indian Registration Act. It is done at the office of the Sub-Registrar in whose jurisdiction the property lies. The original copy of the registration is kept with the Registrar to be used in case of any future dispute.
Steps to getting your property registered:
- Estimate the value of your property according to the circle rates in your area using the TEAL Circle Rate Calculator
- Compare the circle rate with the actual price paid; the stamp duty will be the higher of the two values
- You will then have to buy the non-judicial stamp paper of the same value. These can be purchased online or in-person from licensed stamp vendors. A proof of payment needs to be provided to the Collector of Stamps.
- The nature and clauses of the sale have to be drawn up in the deed. The subject matter of this will vary depending on the type of transaction (sale, lease, mortgage, POA etc)
- The last step is for the transacting parties to get the deed registered at the SRO with two witnesses
- A receipt is received after the sale deed is registered and you may collect the sale deed from the SRO after 7 days
- Lastly, once the original sale deed is registered, you may get it verified with the registry details and date from the Registrar’s Office
Documents required to register a property :
There are certain documents one must have before finalizing the registration and transfer of property:
- Passport-size photographs of buyer and seller
- Identity proof
- Power of Attorney
- Encumbrance certificate
- Preparation Deed
- Khata certificate
- Chain of documents from 1st owner
- Receipt of payment of dues
- No-Objection Certificate
- Occupancy certificate
These documents are simple confirmations indicating that the seller is selling under the knowledge of the local authorities and protects them in case of any future legal action.
Time Limit for getting your property registered: As per Section 23 of the Registration Act, the transacting party is required to submit all documents within 4 months of execution with the requisite fee. There is usually a fine that is levied in case of delay and an additional time period of 4 months may be allowed if the delay is justified.
At TEAL, we are building the next generation of property due diligence using big data analytics and machine learning. We provide reliable information about property ownership, registration status, disputes, tax compliance history and all other information that you will need to make a safe and secure property investment. To learn how TEAL can help you in your journey, get in touch with us.