Property Registration in India is governed by Section 17 of the registration Act 1908, which mentions that it is compulsory that if any immovable property is worth more than Rs 100, then it should be registered in government records.

Property Registration In India

In India, if you buy any property that costs more than 100 rupees, you have to get that property registered, and not doing so is a punishable crime.

Whenever the sale or purchase of any immovable property is made, registration for that property is required. Online property registration in India is governed by Section 17 of the registration Act 1908. Suppose your property is not registered in your name in the government records.

In that case, it is an entirely lost situation for you as you will not be the property owner; hence, you will not be able to earn any economic profits from it. Also, you will not be able to claim it as yours in case of any dispute. So, if you are an intelligent and aware citizen of India, you should always get your property registered in the government records by following all the necessary protocols mentioned by the Indian government.

Nowadays, finding and buying a property has become an effortless task, but getting all the paperwork to register that property in government records has become complex and tiresome.

Hence, we have all the latest updates about the rules and regulations for property registration and all the other things you should know if you want to register your property. 

Laws Applicable to Property Registration

The Indian Government has enforced two laws on property registration, and both laws should be strictly followed by every citizen of India who is buying or selling property. The following are the two applicable laws:

• Registration Act, 1908: Under section 17 of the Registration Act, 1908, it is compulsory for all Indian citizens that immovable property that costs more than Rs 100 should be registered in government records, and not doing so is a punishable crime. 
• Indian Stamp Act, 1889: Every person must pay stamp duty on documents of the property that is to be registered. 

New Rules for Registering a Property In India

A new set of rules have been implemented in 2020 for Property registration by the Indian government. All these rules should be strictly followed by everyone while registering a property. Following are the new set of rules that you should know:

• Now you will not have to wait for long as copies of all the documents will be available on the same day due to technological advancements and everything getting computerized.
• A non-registered property that is acquired by the government cannot demand compensation under an Income Tax return.
• A property that is not registered has no legal validity, and it stands as not valid evidence in court.

These are some of the new rules and regulations that are implemented and have to be strictly followed by everyone. 

Benefits of Property Registration

As you are all aware, it is now simple to search for and purchase a home, but it is still important and time-consuming to register your home. However, the benefits of having your property registered to make it all worthwhile. The advantages of registering your property includes the following:

• If your property is registered, then all the details about the Property Value can be easily gathered from the office of the sub-registrar.
• All the disputes related to land ownership can be easily solved, and no one can make illegal claims on your property.
• If the registrar makes any errors during the property registration, then the government will compensate the buyer if they have incurred any losses. 
• The property seller will receive a tax deduction benefit under section 80C if the property is registered.
• If your property is registered, then it makes the mutation process easy. 

Documents Required for Property Registration 

Submitting all the necessary documents is one of the essential steps during the property registration. You should register all the required documents within four months from the date of execution, and in failing to do so, you will have to face some penalties. 

The registration of documents for a property will take 2-3 days for metro cities and up to 7 days for rural areas. Following are the documents you should keep ready to save yourself from any type of delay in submitting the documents. 

• Passport-size photographs of buyer and seller
• Identity proof of both parties- Aadhar card Document,Pan Card
• Power of attorney
• The latest property registers card copy
• A copy of the municipal tax bill
• Property Registers card copy 
• Construction completion certificate
• NOC (No Objection Certificate) 
• Payment receipt of Stamp duty and registration fee
• Verified Sale deed copy

What Is the Property Registration Process?

Following are the steps that you have to follow to register your property:

• Firstly, estimate the property value based on the circle rate in that area. 
• Once you are done estimating that property’s value, you must purchase a non-judicial stamp paper from a licensed stamp vendor, or you can buy it online also. 
• Then a deed must be signed on the stamp paper based on the transaction’s nature. 
• After this, to get that deed registered, the buyer and seller must visit the sub-registrar’s office and two witnesses. Don’t forget to carry the photographs, identity proof, and all the necessary documents mentioned above.
• Then, you must pay the registration fee before the property registration. Remember, the registration fee might vary from state to state, so gather all the details about the registration fee from the registrar’s office very carefully. 
• Then all the documents you submit will be verified, and you will receive a receipt after the deed is registered. Visit the office of the registrar after two to seven days to collect the sale deed. The registration of documents for a property will take 2-3 days for metro cities and up to 7 days for rural areas.

Now that technology is getting increasingly advanced, the government has provided a facility to get your property registered online. However, this facility is only available in a few states. But, it is spreading quickly and will soon be available in the entire country. You can pay the stamp duty and property registration fee online and will receive a payment receipt for it on the website. You can make payments using Net banking, a debit card, or a credit card.

Property Registration Fees in India

Property registration fees in India vary from state to state, typically ranging between 1% and 3% of the property’s value, with a maximum cap, often set at ₹30,000. These fees are subject to periodic changes, and it’s crucial to stay updated on any revisions. Here’s a breakdown of registration fees in some major Indian cities:

• Delhi: 1% of the property’s market value, plus ₹100 for filing fees.
• Mumbai: 1% of the agreement value, capped at ₹30,000.
• Bangalore: 1% of the property’s value.
• Chennai: 1% of the market value of the property.

It’s important to note that these fees are subject to change and may vary based on the state and location.

Consequences of Failing to Register a Property in India

Failing to register a property in India can have severe consequences. An unregistered property is not considered legal and cannot serve as proof of ownership in a court of law. 

Establishing ownership becomes challenging if the owner’s name is not officially recorded in public records. Additionally, there is a time limit for registration in India – generally, it must be completed within four months of the transaction’s completion. Failure to register within this timeframe may result in fines, potentially up to 10 times the initial registration fee.

Things to Check Before Property Registration

Before proceeding with property registration in India, it’s crucial to exercise caution and consider various factors to avoid potential issues. Here are key aspects to check before property registration:

Chain of Documents: Thoroughly review the documents that outline the property’s transfer history from one owner to another.

Due Clearance: Ensure that essential clearances such as electricity bills, water bills, and taxes are settled and up-to-date before finalizing the property purchase.

Stamp Duty Calculation: Calculate the stamp duty based on the property’s market value, noting that stamp duty rates vary from one state to another.

Deed Preparation: Draft a comprehensive deed (e.g., sale deed, gift deed, lease deed) including terms and conditions, buyer and seller details, and other relevant information.

Encumbrance: Obtain an encumbrance certificate to verify that the property is free from legal disputes and mortgages before completing the purchase.

NGDRS

The National Generic Document Registration System (NGDRS) has been introduced by the Department of Land Resources, Ministry of Rural Development, Government of India.

NGDRS is a configurable application designed for property registration departments nationwide. It facilitates online land buying and property registration, allowing citizens to access information on circle rates, property valuation, and available land types for sale. 

States can customize NGDRS according to their specific requirements, providing a user-friendly interface for registration processes.

Factors Affecting Property Registration Charges

Various factors influence the determination of property registration charges, including:

1. Property Type: Distinctions are made between residential and commercial properties, with higher charges for commercial properties due to their business-oriented nature and additional amenities.
2. Age of the Property: New properties typically incur higher registration charges compared to older ones. The value of an old property may have depreciated over time.
3. Transfer Type: Charges vary based on the type of property transfer. For instance, if the property is transferred as a Gift Deed or to a family member, registration charges may be lower than when purchasing from a non-family member.
4. Property Location: The proximity of the property to transportation hubs like bus stations, railway stations, or airports, as well as its location in developed towns or metro cities, can influence registration charges, with higher charges for prime locations.
5. Owner’s Gender: Governments may provide a discount on registration charges if the property is registered under a woman’s name.
6. Amenities: Properties with additional amenities such as libraries, gyms, swimming pools, and clubhouses may have higher registration charges.

Understanding these factors is essential for individuals involved in property transactions to anticipate and plan for the costs effectively.

Conclusion

We have shared all the significant updates you should know about the property registration in India. We hope we have covered all the essential details you might be searching for. For more updates like these, stay connected to Vakilsearch, as we will be back very soon with more information about property registration in India.

Frequently Asked Questions

What are the latest changes or updates in the property registration rules in India for 2023?

There are limited major changes in 2023 as existing regulations govern most aspects of property registration. However, several states are promoting online document submission and registration platforms. Some states have even mandated linking Aadhaar cards for property transactions for increased transparency.

How do the new property registration rules impact the process of buying or selling real estate in India?

he new rules aim to simplify the property registration process, make the process more transparent, and reduce fraud in property transactions.

Are there any specific documents or information required under the new property registration rules?

There are no specific documents or information required under the new property registration rules. However, existing documents like sale deeds, title deeds, ID proofs, etc., are essential.

What is the significance of the new rules in terms of ensuring transparency and reducing fraud in property transactions?

The new rules aim to improve transparency and reduce fraud in property transactions by making the registration process more efficient and accessible

How has the timeline for property registration been affected by the recent rule changes?

The new rules have improved the timeline for property registration, allowing for faster access to documents.

Are there any specific rules or considerations for property registration in different states of India in 2023?

Property registration laws and fees vary by state in India, with each state having its own set of fees for property registration, ranging between 1% and 3% of the property's value.

What measures have been introduced to simplify the property registration process for the benefit of buyers and sellers?

Online platforms have been introduced to strive to make document submission and fee payments more convenient. Some states have even initiated e-stamp facilities and online tracking of applications.

How do the new rules address issues related to property title verification and ownership disputes?

No major changes were implemented regarding title verification processes. And when it comes to ownership disputes, existing legal mechanisms for dispute resolution remain in place.

Is there a central online portal or platform for accessing information and initiating property registration under the new rules?

No single national platform exists, but states have developed their own online initiatives.

What are the penalties or consequences for non-compliance with the new property registration rules in India for 2023?

Non-compliance with the new property registration rules may result in penalties, such as fines and imprisonment, depending on the specific circumstances.

Also, Read

• What Is The Time Limit For Registering The Property?
• The Process of Land Registration In India
• Is Property Registration a Must?