According to Section 17 of the Registration Act of 1908, it is mandatory to register the transfer of property in India. The registration and transfer of real estate in India are governed by this Act. Because the person in whose name the property is registered is the lawful and legal owner of the property, registration is required.
Several factors come into play while registering a property. The registration is subject to stamp duty. Since each state has its registration laws, the registration procedure is determined by the state in which the property is situated.
The description of the property together with the address, zip code, and kind of property: flat, agricultural, plot the ownership mode: purchase, gift, lease, and owner’s private information Name, age, profession, parent’s name, and evidence of ownership: title deed, power of attorney, etc. are required at the time of registering the property.
What Documents Do I Need For Registering A Property?
One of the most crucial procedures during land registration is document submission. Document submission is used to keep track of document execution. Within four months after the date of execution, you must register the papers. You can submit an application to a sub-registrar with a justification for the delay even though the limit has been reached. Even if a sub-registrar accepts, you will still be responsible for the fine.
Document registration may take up to 7 days; it typically takes 1-2 days in metro regions and up to 7 days in rural areas. You must have the following documentation available at all times to prevent delays:
- Aadhar passport size of both seller and purchaser.
- Copy of the original sale deed that has been verified.
- Copy of NOC according to the land ceiling Act.
- Copy of the latest property register card.
- Copy of Municipal tax bill.
- Construction completion certificate.
- Paper of agreement between the seller and the original purchaser.
What Fee Is To Be Paid For The Property Registration In India?
Each state has a distinct registration cost for real estate. The registration price typically varies from 1% to 3% of the value of the property, up to a maximum of Rs 30,000. States periodically change the fees as well.
- Delhi: 1% of the property’s market value plus Rs 100 in pasting fees
- Mumbai: 1% of the value of the property and Rs. 30,000 for properties worth more than Rs. 30 Lakh
- Bangalore: 1% of the value of properties
- Chennai: 1% of market value
What Will Happen If I Fail To Register A Property?
You run a very high risk if you don’t register the purchase agreement for a property. In no court of law may a document that is needed to be registered but is not registered to be used as evidence.
It is important to note that establishing ownership may not be achievable unless your name is listed in the public records as the owner of a certain piece of land. For this reason, the buyer must register the property.
The Time Limit For Property Registration
Within four months of the transaction’s completion, you must register your property. You can ask the sub-registrar for a delay pardon if you don’t register within four months. If you fail to pay a fine that is up to 10 times the initial registration amount, the registrar may agree to register your property
What Can’t Be Transferred As Part Of A Property Transfer?
The advantages, profits, maintenance, etc. are not transferable under the Transfer of Property Act since they are personal benefits that the individual receives and cannot be transferred to another person. If he does, then the transfer is void.
Transfer Of Property Act
The Indian government drafted the Transfer of Property Act of 1882, which went into force on July 1 of that year. The law covers every element of transferring property between living things (inter vivos). Transfer of property, as defined under the act, is the conveyance of a property from one person to one or more individuals, or himself. The transfer may also involve a business, organisation, or group of people, and it may be agreed to carry out the property transfer (of an existing property) now or in the future.
Immovable and moveable property are the two major forms of property under the Indian legal system. Regulations for the transfer of both movable and immovable property are included in the Law of Transfer of Property Act. The act’s definition of “transfer” broadly refers to transfers made by a mortgage, exchange, gift, sale, assertible claim, or lease.
Benefits of Property Registration
It is critical to register your dream home as soon as you have done so. The benefits of registering your property include the following:
- Land ownership-related disagreements are easily settled.
- If the property is registered, it is simple to obtain information on land ownership from the sub-office registrar.
- Trespasser encroachment can be prevented since the post-registration land plan is provided to the property owner.
- If the buyer has suffered damages as a result of any error made by the registrar during registration, the government will make up the difference.
- The property seller will be eligible for a tax deduction under section 80C if the property is registered.
- Property mutation is assisted by property registration as well. A method of ownership transfer from one person to another is mutation.
Online Property Registration
Only a few states in India are allowed to provide online services for property registration. If your state provides such a service, you should bear in mind the following recommendations:
- Make sure there is an online property registration gateway for the state where the property is situated.
- On an online portal, only the services listed below are available.
-Check the cost of stamp duty.
-Pay the registration cost and stamp duty.
-Online payment receipt.
- With your payment receipt, go to the sub-office registrar to finish the registration procedure.
- If the property value exceeds Rs 50 lakh, you must pay the TDS of 1% online.
- Give your name, address, the kind of property, your position as the owner, a description of the property, and a copy of your property’s title when registering online.