Summary
In India, registering a property is essential to proving legal ownership and protecting property rights. It provides certainty and protection to property owners. Understanding the property registration process is essential for both the buyer and seller to ensure a smooth and lawful transaction. In this blog, we will explain the property registration details and provide insights into the steps involved.
- Law Applicable on Property Registration
- Things to Check Before Property Registration
– Ownership Documents
– Clear All Dues
– Stamp Duty
– Property Deeds
– Encumbrance Certificate - Documents Required for Property Registration
- Steps to Follow for the Property Registration Process
- Request the Modifications of the Title Deed
- Fees of the Property Registration
- Conclusion
Law Applicable on Property Registration
The Registration Act,1908- This law suggests that any sale of immovable property(like land and buildings) worth more than Rs100 should be registered. It outlines the process and authorities responsible for property registration documents.
The Indian Stamp Act,1889- These laws make it mandatory to pay stamp duty on property documents that need to be registered. Stamp Duty is a tax that you have to pay when transferring property ownership.
Things to Check Before Property Registration
Ownership Documents
Carefully check all the documents showing the property was transferred from one person to another. This will help ensure there are no issues with the ownership trail.
Clear All Dues
Make sure all outstanding bills like electricity, water, and taxes related to the property have been paid and clearly by the current owner before you buy it.
Stamp Duty
Stamp Duty is a tax that must be paid during the property registration process. The amount depends on the property’s market value and varies across the different states.
Property Deeds
A deed is a legal document that outlines all the details, terms, and conditions related to the property transfer. Depending on the type of transaction, it could be a sale deed, gift deed, or lease deed.
Encumbrance Certificate
This important document confirms that the property you are buying has no legal disputes or outstanding mortgages/loans tied to it. Getting this certificate is crucial to avoid future legal problems.
Documents Required for Property Registration
Photograph and ID Proof- Passport-size photograph and identity proof documents like an Aadhar Card or PAN card of both the buyer and seller.
Property Documents- The latest property register card copy, which has all the property details, You also need a copy of the verified sale deed for the property.
Tax Documents- A copy of the latest municipal tax bill paid for the property.
The No Objection Certificate (NOC)- Attests to the absence of any outstanding debts or property-related objections.
Stamp Duty and Fee Receipt- Proof of payment for stamp duty and registration fees must be submitted during the property registration process.
Steps to Follow for the Property Registration Process
Step- 1
For property registration, the first step is to determine an estimate of the worth of your property based on the circle rate in your region.
Step- 2
The circular rate and the actual price paid at the time of purchase must be compared. The stamp duty for property registration documents will be calculated on the higher of these two amounts.
Step- 3
Purchase non-judicial stamp papers equivalent to the determined value for property registration details.
Step- 4
The stamp sheet is the fourth step in the property registration process. You can purchase the stamp sheet online or in person. While the sheet can be purchased from authorized stamp dealers, e-stamps can be obtained electronically. It is possible to pay the stamp duty through the stamp collector, but proof of payment is required if the duty has already been paid.
Step- 5
At this point, you are responsible for property registration you are responsible for preparing the deed and having it transcribed on stamp papers. The topic of discussion varies depending on the kind of transaction that is taking place, which might be a purchase, lease, mortgage, power of attorney, etc.
Step- 6
The next step for the property registration is that all the parties involved in the transaction must take two witnesses with them when they go to the sub-registrar’s office to get the deed recorded. Every participant in the property registration process should always have their identification documents, photos, and other necessary documents required for property registration. You must bring two photocopies of the full paperwork along with the original copy of the deed.
Step- 7
Following the successful recording of the sales deed, you will receive a receipt for property registration. After about two to seven days have passed, one may once again go to the sub-registrar’s office to obtain the selling deed.
Step- 8
After you get the original deed registered, you can use it as a property registration and information to verify the original sale deed at the registrar’s office. If you find any discrepancy, you may take legal action from the professional. This may be done after the step 7 has been completed.
Request the Modifications of the Title Deed
Mutations refer to the transfer of property ownership from one person to another via a sale or transfer. This is important because it enables the new owner to register the property with the Land Revenue Department in his name. This makes it possible for the government to collect property taxes from the right person.
Related to read: Title Search: Why It’s Crucial Before Buying Property
Fees of the Property Registration
The property registration cost is typically between one and three percent of the entire property value. No matter how much the property is worth, there is a cap of Rs 30,000. The exact percentage and rules can vary slightly depending on the states. It is best to check the latest fee structure for your state before registering the property.
Conclusion
Filling out a property registration form is a prerequisite for buying a home. One of the most challenging aspects of property ownership is the registration procedure. Even the most well-meaning home buyers can become caught up in regulations and paperwork.
Therefore, speaking with a knowledgeable broker or real estate agent is always advised. For a smoother property registration process, engaging with an attorney is also a good idea. You can browse verified properties for sale, rent, or purchase on our property listing site to ensure a hassle-free experience.
