As per laws, it is important to register the property within a stipulated time frame, otherwise there are consequences in terms of monetarily. Read more in the blog.
Whenever you buy a property, you must know that you have to register it. Registration plays a crucial role in buy calls. What happens when Failing for Property Registry in Stipulated Period?
For example, if you wish to sell your property, transfer it, or even gift it, you must have a registered property. Section 17 of the act suggests that all transactions featuring the sale of a property (Immovable) for the value exceeding a certain amount should be registered.
Note:- Know more about the Home Registration details process with our Experts online.
If someone does not end up registering the property while transactions are going on, then in such a case, the transaction does not get proved as per the law in the court. The best part is that you can now register your property online with e-registration. Most of the process can be completed online; you must visit the registrar’s office for one simple step.
Documents You Need to Submit for Registering Your Property Online
- Besides the online form, you need to submit the following documents.
- Proof of your identity, including an aadhar card or pan card
- Passport-size photographs of both parties involved
- Sale deed
- If you are representing someone else, then you must have the power of authority.
- If you are a company, you should have the letter of authority or power of attorney besides the resolution copy of the company’s board authorizing you to carry out the registration.
- Property card and
- Payment proof of your stamp duty and registration fees
After four months of buying the property, you should present these documents, and they are compulsory to be registered with the mandatory fee. You can make the application to the sub-registrar again in case you missed the deadline of 4 months for the condonation of delay.
You have to pay ten times the average amount for re registration as a penalty. Generally, the registration fee for all the property documents is around 1% of the complete property valuation.
Things To Consider Before Registering Any Property
Ideally, it creates challenges in transferring property registration details from one owner to another, for instance, outstanding mortgages and unpaid property taxes.
Being a buyer, you need to check the encumbrances on the property before you end up buying, and you need to get the property cleared from it. This will be contained at the sub registrar’s office within the jurisdiction.
As a buyer, you should check all the chain of documents before you buy the property. The document change generally specifies when and how the property has been transferred from one person to another.
All the properties should be free from the dues like property taxes, water bills, electricity bills, etc. It is the responsibility of the buyer to check all these before registering their property.
A deed draft, including the Sale deed, lease deed, gift deed, etc., needs to be prepared on which the parties’ details must be involved, including the terms and conditions mentioned before you sign the deed.
Stamp Duty Calculation:
Stamp duty is generally the fee cleared by the government, and it varies from one part of the country to another. Stamp duty is mainly calculated on the market value basis, which features property involvement.
Once you complete all the above steps, the deed registration takes place at the sub registrar’s place under the jurisdiction of the property and comes after signing or giving some impressions of the parties involved in the deed.
Benefits of Property Registration
Application For Title Deed Mutation
Mutation means a change in the ownership of a title from one individual to another. Due to the mutation, the new owner would get the property recorded in their name in the land revenue department. This allows the government to levy property taxes.
The governing authority is the city survey and land records department, an application for the mutation. After understanding the request for modification, the city survey and the land records department decide the tax value on the property and issue the mutation letter in favor of the buyer.
Benefit For Tax
As per section 80 C of the IT Act: a person is eligible for deduction of another person’s stamp duty registration fee to acquire a house. The reduction is from the total gross income, around 1,00,000 of the total revenue. The maximum limit of deduction under section 80 C is given.
The registered title will provide you with a quick update record of who owns the property and who does not do any research as to the history of the title.
An unregistered title is always a guaranteed state. You are eligible for some compensation if you have suffered a loss of an estate interest in the property land information due to the mistake or omission in the register by the registrar.
Disputes regarding the ownership or rights over the land can be quickly resolved. In addition, once registered, the Patta Chitta Documents can be a boon.
What Happens If You Fail To Register Your Property?
Failure to do so can put you at considerable risk. Any document required mandatorily to be registered but not registered cannot be registered as evidence in any court of law.
Failure to register comes with a price, so you should not do that at any cost. It is essential to know that unless your name is mentioned in the government record as the property owner, proving the owner might not be possible. For this reason, property registration is essential for any buyer.
Additionally, the unregistered property holds no validity legally, and the owner risks losing this property with time even if you hold the position to the property. Additionally, the government can acquire unregistered properties at any time to develop the infrastructure project.
Therefore, the owner will not be able to claim their compensation which gets offered to these owners in cases like these. Hence not registering your property during the given timeline can attract a lot of penalties and make your property null and void.
If you are looking for an expert lawyer who can help you with managing documents, contracts or registration of the company, then Vakilsearch is the ideal solution for the same. Register your company without any delays with the presence of professionals.
- Sale Deed of land Registry
- How to apply for Online Mutation in Bihar?
- How to register Chitta online?