If the property is purchased in India for more than Rs.100, the property must be registered. Land Registration is governed by Section 17 of the Registration Act, 1908. It is necessary to register a property in the areas involved in the sale and purchase of immovable property. If a property is not registered in the government records in the name of the buyer, they will not be the official owner of the property and they will not be able to challenge it in court if there is any dispute. These will also be suitable for the subsidiary company registration as well.
Searching for the desired property may be easy these days, but property registration can be a complicated process. To make it easier to register property online, we have compiled a comprehensive guide to land registration law, procedures, fees, documents and more.
Is property registration mandatory?
It is mandatory to register your property in India under Section 17 of the Registration Act. Registration is not mandatory if the value of the property is less than Rs.100. The property is registered in the name of the new owner after payment of stamp duty and registration fee. Stamp duty and registration fees vary slightly from state to state.
Things to check before registering a property
Property registration in India is a tricky process and can have long-term consequences. So be careful when registering. Here are some factors to keep in mind when registering a property: –
- Chain of documents – The buyer must cross-examine documents relating to when and how the property is transferred from one owner to another.
- Appropriate Permit – Before purchasing a property, check and renew electricity bills, water bills, taxes, etc.
- Calculation of stamp duty – Stamp duty is calculated based on the market value of the property and it varies from one state to another.
- Deed preparation – Terms and conditions, such as buyer and seller details, should be drafted in a deed. It could be a deed of sale, a gift deed, a lease deed and so on.
- Occupancy – The Sumambarans certificate certifies that the property is free from legal disputes and mortgages. The buyer should check this before purchasing the property.
Documents required to register the land
Document submission is one of the most important steps during land registration. The purpose of document submission is to record the execution of documents. Documents must be registered within four months from the date of implementation. If the limit expires, the application may be sent to the Deputy Registrar with a reason for the delay. A deputy registrar may agree, but you will have to pay a fine. Registration of documents takes up to 7 days; It takes 2-3 days in metro cities and up to 7 days in rural areas. To avoid delays, the following documents should be prepared: –
- Passport size photos of buyer and seller
- Proof of identity of both the parties – Aadhar card, Ban card
- Copy of the latest property registration card
- Authorized person
- Copy of Property Registration Card
- Copy of Municipal Tax Bill
- NOC (No Objection Certificate)
- Copy of verified sales deed
- Certificate of completion of construction
- Receipt of payment of stamp duty and registration fee
Land registration process
To register a property in your state, you must follow the instructions given below: –
- Estimate the value of the property, based on the circular ratio in that area.
- After calculating the value of the property, you should purchase a non-judicial stamp sheet. The stamp sheet can be obtained online or purchased from a licensed stamp dealer.
- Depending on the nature of the transaction, a deed should be typed on the stamp paper. This deed can be a sales deed or a gift deed.
- To register the deed, both the seller and the buyer must approach the office of the Deputy Registrar with two witnesses. Buyer and seller must bring photographs, proof of identity and other required documents.
- The registration fee must be paid before the property can be registered
- Receipt will be issued after the submitted documents are checked and the deed is registered. Visit the Registrar’s Office two to seven days later to collect the deed of sale.
Online property registration
Now that technology has reached new heights you can now register property online. However, such a service is only available in a few states. You can calculate the stamp duty, pay the stamp duty and registration fee online and get the payment receipt on the website. Payment can be made through Net Banking / Debit Card / Credit Card or Payment Bank.