The registration of the documents of purchase and sale of immovable property is mandatory, and guarantees the security of evidence, avoidance of fraud, and guarantees of title

Regulations pertaining to the registration and recording of transactions related to property in India

When a buyer buys an immovable property, the official change of ownership occurs only after the property is recorded under his name in the records of the government. Because the various financial consequences typically impact buyers, this complicated process requires buyers to have an understanding knowledge about the law that govern the process in India.

The law governing registration of documents is enshrined within the Indian Registration Act, 1908. This law permits the registration of documents in order to guarantee the preservation of evidence, prevent fraud and guarantee of title.

Do you have to register your property?

The most common property-related transactions that require registration is the buying residential units of high value and plots. In section 17 under the Registration Act, 1908, every transaction that involves selling of an immovable property with more than 100 dollars, must be registered. This basically means that all transactions involving the sale of an immovable property must be registered as the immovable property cannot be purchased with a price of just 100 rupees. This same principle applies to the gift of property and vice versa. Even if the recipient is not receiving any financial compensation to exchange the asset the gift deed must been registered in order to have legal validity. In addition, all transactions that are leases for more than 12 months are legally required to register.

In certain circumstances, if an individual who is involved in the transaction is unable to visit the office of the sub-registrar sub-registrar can appoint one or its employees to take the documents required for registration at the home of that person. The term “immovable property” comprises buildings, land and all rights that are attached to the properties.

Documents that must be registered as mandatory

• Instruments of Gift of Immovable property
• Instruments that are not testamentary or transactions that require the selling of an immovable property an amount greater than Rs 100.
• The lease of an immovable property runs for a period of time.
• Contracts for the transfer of immovable property to fulfill the requirements within Section 53A in the Transfer of Property Act, 1882.

• Documents that require registration are not required

In Section 18, the Registration Act of 1908 stipulates those documents could or might not be registered

Will: Although registration is not required however, it is recommended to create a will in order in order to ensure it has legal status.

A lease for an immovable asset that is not more than 12 months this is the reason the majority of rent contracts are for a time period which is between 11 and 12 months.

Documents from transactions in the past the person cannot register such documents.

Decree or court order consisting of an immovable asset valued less than Rs 100. As the property’s value is lower and the labor and costs associated with the process are more expensive.

Certificate of sale issued.

Mortgage agreement the best way to do this is that it should be registered as well for it to be legal validity.

Promissory note.

Instrument of partitioning by the revenue officer.

Immovable property grants by the government. As it is granted to the grantee, the person who grants the property becomes the sole proprietor of property.

Procedure for registration of property

The documents pertaining to property that have to be registered must be delivered at the sub-registrar’s office of Assurances within whose jurisdiction the property, the subject of transfer, is located. The signatories authorized by the buyer and seller are required to be present, along with two witnesses for the registration in the document.

The signatories must carry ID proof. The valid documents to prove identity include Aadhaar Card, PAN Card or any other form of evidence of identity that is issued by an official government entity. Signatories must also give the authority, in the event that they are representing another person. If a company is part of this agreement, then the person who represents the company must carry the appropriate documents, such as a letter of authority/power of attorney and an original resolution of the board of directors that authorizes the person to execute the registration.

It is necessary to show the document proving the ownership to the sub-registrar together with the original documents as well as proof of the payment of stamp duty. Before registering the documents the sub-registrar will check whether the stamp duty is paid for the property according to the ready reckoner for stamp duty. If there is a deficiency in stamp duty, the registrar is not allowed to sign the documents.

Stamp duty can be described as the amount that you pay the federal government in exchange for having legal ownership of an asset. In addition, the registration cost is the amount you pay to have this legal document done in government’s documents. Stamp duty rates vary between states. In the majority of states, women can get the option of a waiver on payment for stamp duty.

It is important to note that witnesses are crucial in the entire procedure. Two witnesses, whom you are planning to present during the registration process will be required to prove their identity before the sub-registrar. To do this they must also bring the proof of ID and address documents. Furthermore, their biometric ID will be also checked in the course of verification.

Limitation of time, charges for registration of property

Documents that must be registered by law, must be filed within 4 months of the day of execution along with the fee required. If the time-limit is over, you may apply to the sub-registrar to be excused of the delay in the following four months, and the registrar could accept to register the documents upon the payment of a penalty that could be up to 10 times the initial fee for registration. The cost of registration for property documents is one percent of the value for the house, with an maximum of Rs. thirty thousand.

In the past, the documents submitted to register, were returned to you within an interval which was, at most six month. With the introduction of computers to the sub-registrar’s offices and the sub-registrar, these papers (bearing an registration number as well as evidence that documents have been registered with the registry) are scanned and sent to you the next day.

The impact of not registering property

Failure to properly register the purchase contract of an investment property, can put you at risk. A document that has to be registered, but not registered, can’t be accepted for evidence by any legal court.

It is important to remember here that unless your name is included in public registers in the title of the proprietorship for a specific property, proof of ownership might not be feasible. Because of this, registration of property is required for buyers.

Furthermore, since properties that are not registered have no legal value as such, the owner faces the possibility of losing the property even if the owner is the owner of the property. If the government was to purchase the property at any time and develop some infrastructure, then the owner will not be eligible to claim the amount of compensation normally provided to property owners and landowners in these situations.

Amendments in the Registration Act

Tamil Nadu has been one of the states of India to implement significant changes to the Registration Act in order to stop fraudulent activities during the registration of property. The amendment gives the power for the official in charge for registration to cancel fraudulent documents that are provided during the registration procedure. Before, the identification of fake documents demanded that the inspector send the documents to the appropriate court, which meant that the action to cancel the documents was put off. The power now lies at the discretion by the inspection officer to eliminate the documents in person. In addition, the advocates who prepare the registration papers for property as well as the authors are required to submit their pictures and signatures on the documents to stop fraud. A sentence of three years in prison could also be handed down to those who have submitted false documents. The government is also planning to create an inquiry committee to examine the massive amount of registrations for property.

Online property registration

In the majority of Indian states, buyers can finish a significant portion of the registration process on the internet. Based on the state in which you reside, you can use the online registration services for completing a portion of your registration. For the final stage, you’ll need go to the office of the sub-registrar along with the seller, and two witnesses, in order to close the deal. After your documents have been registered, you’ll need return to this office to pick up the property’s registered documents.

Can I make a property registration on the internet without leaving my home?

Although most states permit one to conduct a large portion of the property registration process online, in order for the formalities to take place everyone involved must visit the sub-registrar’s office in order to register the property. Utilizing the online portals buyers will be able to pay for stamp duty, give all the necessary information and schedule an appointment with the office of the sub-registrar.

Do I have the right to register piece of land without deeds?

Land ownership without deeds is an extremely frequent issue within rural India. While such instances are not common in urban areas, there are a few ways to identify their property or land without the need for a deed. In these instances the owner must make an application to register their property at the Land Registry Office. The property owner must either prove his ownership, or explain the reason why the deeds for the land aren’t present and also provide the previous owner as well as other details. It is only by providing enough information and proof of ownership that registration of these properties is permitted in India.

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