Are you planning to purchase a property in India? It is essential that you register it after the deal. Scroll below to learn about the requisite legal procedure for registration of the newly-bought property.
Sukhwani Constructions, based in Pune, gives you detailed information about the registration of immovable property in India.
Section 17 of the Indian Registration Act of 1908 outlines the legal requirements for immovable property registration in India. Immovable property includes land and buildings obtained directly from developers or through secondary sales.
The law calls for the registration of various documents in order to safeguard fraud prevention and evidence preservation. Practically speaking, it means that all sales of real estate must be recorded.
Documentation, payment of fees, stamp duty, and the execution of paperwork by both the buyer and the seller are essential for property registration. Since registration is required, all transactions involving sale proceeds of at least Rs 100 must be registered.
Steps for Purchasing a Safe Property
Sukhwani Constructions suggests that before finalizing a property, you must assure yourself that you are buying a safe property and not being trapped in any fraudulence. To safeguard yourself, follow these steps:
- Examine the pertinent information about the property you plan to buy, such as its size, status as a freehold, previous owner(s), etc., and compare it to the information specified in the title deed.
- Examine the provided property designs, layouts, and builder plans if the construction of a commercial or residential property is about to begin. Make sure the relevant authorities have approved these plans. To evaluate the legal documents, you can enlist the assistance of a knowledgeable Delhi real estate attorney.
- Search for the title. Before buying a property, a title search is crucial to ensure the title is clear and unencumbered by any debts or liens. It protects the buyer’s interests and lowers the risks in conducting real estate transactions.
- Obtain the previous owner’s certificate of encumbrance to ensure that the title is completely free of obligations, mortgages, and encumbrances.
- Verify that all applicable taxes, including property taxes and other utility bills, have been paid in full for the previous five years. Getting the payment receipts directly from the relevant offices is the proper procedure.
- Obtain a properly drafted sale agreement and conveyance deed on stamp paper for the required sum by hiring the best real estate attorney. This agreement should include all pertinent terms and conditions relating to the purchase price, the adoption process in the event of default, the grievance procedure, and other matters.
- The final contract has to be signed by both parties to the sale and at least two witnesses. It is crucial to register the property in the buyer’s name after completing the purchase process.
According to Sukhwani Constructions, once you have taken these steps and made sure you are buying the safest property, get ready for the registration process. The first step in the process is to collect these essential documents.
Important documents for property registration
- Power of attorney, a conveyance deed, a land deed, an original title deed, and a sale agreement with two xerox copies of ownership documents.
- Identification proof of the buyer, the seller, and both the witnesses.
- Details and payment documentation.
- Khata Certificate and tax payment receipts.
- Declaration of Encumbrances.
- Receipt for the payment of registration and stamp duty.
How to proceed with property registration
For registration, the aforementioned documents must be delivered to the Sub-district Registrar’s office.
The Registration office will then check the documents for validity and assign the applicant a token number.
The operation office receives the documents from the registration office and enters the pertinent and necessary data into the appropriate registration software.
The thumbprint and photo of the buyer and seller in person, along with any witnesses, will be taken by the computer operator. The registration office is then given the captured image and print.
The Registrar will request signatures from all parties on the computer-generated document, which they will then resubmit to the office.
The parties must pay the required registration fees before the Sub Registrar or SDM, as applicable, authorises, signs, and registers the final document.
The three issued copies are then created and given to the buyer, the registration office, and the patwari.
Pay stamp duty and registration fees for the property
Prior to or at the time of the final execution of the registration documents, the Stamp Duty is paid. You can pay for it by purchasing actual stamp paper, Franking, or e-stamping. It is controlled by various state laws.
Additionally, to the stamp duty, the registration fee is additionally subject to various state laws. Typically, it is up to the highest of Rs. 30,000 or about 1% of the market value or agreement value, whichever is higher.
Property registration fees and time limit
The required fees must be included with the documents themselves and must be submitted within the four months following the registration date.
Conclusion
This is all about the registration of property in India. If you wish to own a property, you should get it registered. If you don’t register your property, you will have to face several issues in future. For instance, since unregistered property lacks legal standing, it cannot be used as evidence in any legal proceeding if it is not registered. Moreover, if your property is taken over by the government and it isn’t registered, you won’t be entitled to compensation.
Sukhwani Constructions advises you to go through all the legal procedures of property registration to enjoy the full benefit of your purchased property.
