Whenever you buy a house, apartment, or any other immovable property in India, registration with the concerned authority must document the changes of ownership and transactions involved in the process. It guarantees your legal ownership title over the property.
House Registration – To begin with, this discussion, let us first find out the types of Indian citizens according to our law. We can have a category of citizenships in India based on which we can come to know who can acquire immovable properties in India.
- Indian Citizens: Those who are living in the country permanently.
- NRI: Those who are living in abroad for work or business purposes. To be precise, an NRI is an Indian citizen who lives abroad for more than a period of 180 days in a financial year.
- PIO: Person of Indian Origin; in short, PIO is a person who has now settled in a foreign country.
- OCI: Overseas Citizen of India, in short, OCI is a person who is formally a citizen of a foreign country and is granted several rights and freedom that an average Indian citizen used to enjoy.
According to the Indian penal code, the NRIs/PIOs cannot acquire any agricultural land or any farmland under general permission, which applies to permanent citizens of India. However, this proposal can be accepted after fulfilling the requirement of specific approval from the Reserve Bank of India, which considers the proposal after consultations with the Government of India to decide the amount of allowance for the acquisition.
An NRI can acquire any immovable property in India except agricultural land/ farming land/plantations with some specific payment method. Transferring the property to an NRI also has some restrictions. The person should be from one of the following categories to whom the property can be transformed:
- An Indian resident who is staying abroad.
- An Indian origin but not staying in India.
- An Indian resident.
However, an NRI can inherit any agricultural land/farmhouse/plantations and eventually can enjoy the ownership.
Similarly, a PIO cannot acquire farming land in India but can inherit from his family or ancestors. Anyways, permission from the Reserve Bank of India is needed whenever the inherited property is in favour of a person who is not residing in India. Another important factor that needs to be considered is the person from whom the NRI will inherit the property; the owner should have acquired the same property according to the foreign exchange law, which was popular in those days.
Registration of House Acquired Through Purchase
If you acquire a house through purchase in India, the final step is to get it registered in your name to establish your legal ownership over that property.
Every immovable property in India that may be acquired by purchase, inheritance, government grant, or as a gift of more than rupees 100 must be registered under the Registration Act, 1908. The registration fees differ from state to state, which mainly depends on the type of land or the type of building. Mostly it is 1% of the salable value. Let us understand the process of house registration:
The House Registration Process
Check the circle rate: Check the circle of the area where you have purchased your house. This rate depends on several factors, including the market value of that area, infrastructure, facilities available, etc. This will help you to get the Valuation of your property.
- Calculate your stamp duty: To get this, you have to compare your circle rate with the actual payment made by you to purchase the property. The higher one will be applicable as your stamp duty.
- Buy stamp paper: Once you get the value of your stamp duty, you have to buy non-judicial stamp papers.
- Prepare the final deed: Prepare your final deed and get it typed or printed on stamp paper.
- Appear at the sub-registrar office: Once the deed is ready, both the parties need to present at the sub-registrar office with all relevant documents, such as your photographs, identity proofs, etc., along with the original and two photocopies of the deed. They will give you a receipt and ask you to wait for seven working days.
- Collecting the sale deed: After seven days of deed submission, you must re-visit the sub-registrar office to collect your deed.
These are the same steps you must follow to register for your new apartment. Before you start with the house registration process, you need to follow these few steps:
1. Encumbrances: The land on which you build your house may have some outstanding mortgages, or may the previous owner did not clear his property tax. These are called encumbrances which can create issues while transferring property ownership.
2. Documents: While purchasing the house, you need to check a long chain of documents which will help you know the previous owners and understand the process of transferring the ownership from one to another. These documents will help you know that your house has no litigations.
3. Due payments: The buyer has to check for any dues like unpaid electricity bills or property taxes (in the case of property resale) before going for house registration.
4. Preparation of the deed: Before printing the final deed, you must prepare a draft deed to verify all the terms and conditions from both parties.
5. Calculate stamp duty: You have to calculate it by comparing the circle rate of the location of your house and the actual valuation. The higher one is applicable as the stamp duty. Get Online Land Registration Documents from Property Experts.
Time Limit For Submission of Documents
There is a certain time limit within which you must submit the documents for registration of your house. As per section 23 of the Registration Act, 1908, the documents should be submitted within four months from their execution date.
What is Stamp Duty?
The stamp duty is a government-imposed indirect tax rate applicable when you are doing legal property transactions. It is a government-imposed indirect tax rate applicable when you are doing legal property transactions. It is calculated by comparing the circle rate of the location where the property is located and the valuation of the property. The higher one will be applicable as the stamp duty.
House Registration Charges in India
House registration: The Charges vary from state to state in India. The registration charges tend to be 1% of the market value of your house. All the metro cities in India have charged their citizens 1% of the property market value, whereas, in Kolkata, it is 1.1% of the total property market value.
Can House Registration Be Done Without The Buyer’s Presence?
Yes, the buyer does not have to be present physically at the registration office at the time of their house registration.
They can easily issue a power of attorney who will do all the necessities during the property registration process. A power of attorney should carry the relevant document of the buyer with his thumb impression and signature in specific forms.
Registration Charges in Key Indian Cities
| City | Registration Charges |
| Bangalore | 1% of the property value |
| Delhi | 1% of the deal value |
| Mumbai | 1% of the property value |
| Chennai | 1% to 4% of the property value |
| Kolkata | 1% of the total property value |
| Gujarat | 1% of the total property value |
| Kerala | 1% of the total property value |
| Maharashtra | 1% of the total property value |
| Tamil Nadu | 1% of the total property value |
| Uttar Pradesh | 1% of the total property value |
| West Bengal | 1% of the total property value |
| Rajasthan | 1% of the total property value |
| Telangana | 1% of the total property value |
| Uttarakhand | 1% of the total property value |
Implication of Failure to Register House
- Not registering the purchase agreement of a property poses significant risks. Any document that should be registered but isn’t cannot be presented as evidence in a court of law.
- It’s essential to highlight that without your name officially recorded in government records as the property owner, proving ownership becomes challenging. Therefore, property registration is imperative for the buyer.
- Furthermore, since unregistered properties lack legal validity, the owner faces the potential loss of the property, even if they are in possession. In the event of government acquisition for infrastructure development, the owner would be unable to claim the compensation typically offered to land/property owners in such situations.
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Conclusion:
House registration is the final process of securing your property from legal disposition. Therefore, it is an obvious process to follow without making any compromises. It helps you establish your ownership of the property and provides insurance for future generations who may have to sell the property if needed. So, making it clear from all disputes is the ultimate goal of getting your house registration. With Vakilsearch, the entire process has become easier to understand for any layman.
