Property Registration in India

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Property Tax

Property Registration in India is governed by Section 17 of Registration Act, 1908. This Act is applicable to whole of India except the state of Jammu & Kashmir. It refers to registering the changes in ownership and transactions related to the land/ immovable property. To guarantee the legal title of land/immovable property that is just purchased it must be registered with the concerned authority. Moreover registration of property contains certain benefits such as easy settlement of disputes if any issue arises with respect to the ownership of that property at any later stage. The risk of fraud can be strictly curtailed. Also the public records help government in conducting censuses, surveys and maintenance of any other useful public database.

Now the process of Registration can be done with the help of Computerised system. It removes middlemen and also does transparent valuation of the documents.

Establishment of Registration

Part II of the Act, from Section 3 to 16, deals with the Establishment of the Registration. It makes it clear that Registration of a property is a State Activity. Every State has Inspector-General appointed by each State Government. Each district contains Registrar and each Sub-District contains Sub-Registrar. The State Government shall provide for the office of every registering officer the books necessary for the purposes of this Act. The books so provided shall contain the forms from time to time prescribed by the Inspector-General, with the sanction of the State Government, and the pages of such books shall be consecutively numbered in print, and the number of pages in each book shall be certified on the title-page by the officer by whom such books are issued. The State Government shall supply the office of every Registrar with a fire-proof box, and shall in each district make suitable provision for the safe custody of the records connected with the registration of documents in such district.

Registrable Documents

Part III of the Act deals with Registrable documents. Section 17 makes compulsory to register certain documents whereas Section 18 does not make mandatory of registration of certain documents.
Documents of which registration is compulsory (Sec.17)
Gift deed (of immovable property);
Other Non-Testamentary instruments that contains value of not less than Rs.100;
Non-Testamentary instruments which acknowledge the receipt or payment of any consideration on account of the creation, declaration, assignment, limitation or extinction of any such rights, title or interest ;
Lease deed (reserving rent for 1 year or of any term exceeding 1 year)
Transferring of any decree, order of the court or any award of not less than value of Rs.100.

Composition Deed

Shares of a Joint Stock Company (containing assets in immovable property)
Debenture of a Joint Stock Company
Any endorsement of such Debenture of any company.
Any grant of immovable property by Government
Any instrument of partition made by a Revenue officer.
Any order for granting a loan or instrument of collateral security
Granting loan under Agriculturalists Loan Act, 1884
Any order made under Charitable Endowments Act,1890
Any endorsement under mortgage deed
Any certificate of sale granted under auction of public
Authorities to adopt a son and not conferred by a will shall also be registered.

Documents of which registration is not compulsory (Sec 18)
Value of Instruments less than Rs.100
Instrument of acknowledging the receipt or payment of any consideration
Lease deed ( not exceeding 1 year)
Decree, order or award of a court (Value less than Rs. 100)
Instruments related to Movable property
Wills
All other documents not required by Section 17 to be registered.

PROCESS OF REGISTRATION

Pre-appointment must be taken with the Sub-Registrar and the following documents must be presented before him.
Date of stamp: It is the date of purchase of the stamp paper or the date of certificate.
Date of execution: This is the date on which executants signed the document. Here, sub-registrar classifies the nature of document based on the stamp Act and registration act. As told earlier, date of execution should not be older than 4 months for property registration in India.
Consideration amount: It is the price which has been paid or has been agreed to be paid for that particular piece of immovable property. Consideration amount can be as high and can’t be put under question mark; however, there is a lowest limit of standard rates decided by the govt.
Market value: It is estimated by the market value committee or is taken as it is of consideration amount which has been shown in the document, whichever the higher. The registration fee and the stamp duty is paid on the market value which is higher.
Stamp duty: Here the sub-registrar checks that paid amount of stamp duty should not be less than the calculated stamp duty for that particular piece of land. If a difference comes, that would be paid by the party, either in form of a DD/challan. In case, party refuses to pay the difference, case is further subjected to district court. In a typical Delhi/NCR deal, stamp duty is fixed at 6% of land’s price in case of male purchaser; but if the purchaser happens to be a female, the duty is relaxed at 4%. 600 rupees is the registration fee and 100 rupees being the pasting charges.
Supporting documents attached: Registrar checks if all the appropriate documents have been attached; if any has left out, he advises you to attach it. i.e. NOC, Form No. 1,9,10 , declaration, affidavit etc.

Following is the complete list of documents

Adjudicated sales deed or duty stamped. If sales deed doesn’t get adjudicated from stamp office, then the value can be determined by Govt. reckoner and then it will be confirmed by Registrar or Sub-registrar of Assurances.
If the building is under the city collector’s land, a No objection certificate should be obtained from Collector. It can be obtained from Collector’s office by paying the prescribed fee.
If the immovable property is located in a co-operative society, then a letter has also to be issued from the society. It would indicate the crucial details about the building i.e. year of construction of society, number of floors in the building, number of lifts, area of each apartment, number of rooms and their basic layouts etc.
Copy of the property card, PAN card etc.
Presenting person (PART VI of the Act): Sub-registrar checks if the person presenting the document is the right person to present that document, the person should either be executing or claiming party/representatives. Also, it is verified that all the executants are present or not. After this has been verified, sub-registrar puts stamp no. 1 on the paper.
Payment of fees: Sub-registrar issues the payment receipts when appropriate fee have been paid. He puts stamp no. 2 on document after verification of all the payments e.g. stamp duty, registration duty, pasting fee or any sort of penalties or miscellaneous charges.
Photographs and thumb impression: Photograph of every executant and every person of the claiming party is required. All the thumb impressions are also taken generally on backside of the 2nd or the 3rd page of the document.
Admission stamps: If the executing party is unable to visit the office of sub-registrar due to an unavoidable reason like permanent injury, critical illness, then sub-registrar might himself visit the person (appropriate charges paid for that visit). The details about his visit are noted in a dairy called Minute diary.

Witnesses (Part VII of the Act):
2 witnesses are needed for every executant and same two persons can serve as witness to all the executants.
Identification of witnesses is done by taking names/signature and other details related to them such as their addresses and occupations etc.
Sub-registrar affixes stamp no.3 after completing the identification.
Sub-registrar keeps the document as pending if sufficient numbers of witnesses are not present on the occasion.

After sub-registrar finds all the documents at place, he orders the registration. Its serial number is issued along with Book no., and also the page no. of that particular book, in which entry has been made. This concludes the process of property registration in India.

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A lawyer with 14 years' experience, Vikram has worked with several well-known corporate law firms before joining Vakilsearch.

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