You may be ready mentally and financially for buying a property, but paperwork is unarguably most important part of sealing any deal. After all, only a firm paperwork will ensure your legal hold on the property.
Property registration in India is governed by section 17 of registration act, 1908; this act is applicable to whole of India except the state of Jammu & Kashmir. It refers to registering the changes in ownership and transactions related to the land/ immovable property. To guarantee yourself a legal title of land/immovable property you just purchased, you must register it with the concerned authority.
Registering your property has following benefits:-
- It helps in setting disputes easily; if any arises about ownership of that property in any later stage.
- The risk of fraud is greatly reduced.
- The public record remains up-to-date which helps Govt. in conducting censuses, surveys and maintenance of any other useful public database.
The property registration in India is no more an extremely tough and tiring process which it used to be. Now with the computerized property registration system, the whole process is very easy. Computerized system has many benefits like removal of the middleman and transparent valuation. But computerization has not completely replaced the manual paperwork; you can only pay initial duties with the help of the computer; further submissions have to be done in the office of Registrar/sub-registrar or to SDM in some states. Form can either be downloaded from the website of department or can be obtained in the hard copy from the office.
- Document should be submitted within 4 months from the date of execution.
- If the document is executed abroad, it can be registered within 4 months of its arrival in India.
Where the registration should be done:
As registration of property is a state issue in India, there are slight variations in registration process and duties across the states.
- Documents related to registration of immovable property/land should be registered in office of registrar/sub registrar within the district or sub-district or in the office of SDM in some states.
- Stamp duty can be paid via computer or can be paid physically in office with a DD/challan in the stamp office.
Process of Registration:
First of all, you have to take an appointment from Sub-registrar’s office in advance. As you will reach there on pre-determined date, he will check the following things:-
- Date of stamp: It is the date of purchase of the stamp paper or the date of certificate.
- Date of execution: This is the date on which executants signed the document. Here, sub-registrar classifies the nature of document based on the stamp Act and registration act. As told earlier, date of execution should not be older than 4 months for property registration in India.
- Consideration amount: It is the price which has been paid or has been agreed to be paid for that particular piece of immovable property. Consideration amount can be as high and can’t be put under question mark; however, there is a lowest limit of standard rates decided by the govt.
- Market value: It is estimated by the market value committee or is taken as it is of consideration amount which has been shown in the document, whichever the higher. The registration fee and the stamp duty is paid on the market value which is higher.
- Stamp duty: Here the sub-registrar checks that paid amount of stamp duty should not be less than the calculated stamp duty for that particular piece of land. If a difference comes, that would be paid by the party, either in form of a DD/challan. In case, party refuses to pay the difference, case is further subjected to district court. In a typical Delhi/NCR deal, stamp duty is fixed at 6% of land’s price in case of male purchaser; but if the purchaser happens to be a female, the duty is relaxed at 4%. 600 rupees is the registration fee and 100 rupees being the pasting charges.
- Supporting documents attached: Registrar checks if all the appropriate documents have been attached; if any has left out, he advises you to attach it. i.e. NOC, Form No. 1,9,10 , declaration, affidavit etc. Following is the complete list of documents :-
- Adjudicated sales deed or duty stamped. If sales deed doesn’t get adjudicated from stamp office, then the value can be determined by Govt. reckoner and then it will be confirmed by Registrar or Sub-registrar of Assurances.
- If the building is under the city collector’s land, a No objection certificate should be obtained from Collector. It can be obtained from Collector’s office by paying the prescribed fee.
- If the immovable property is located in a co-operative society, then a letter has also to be issued from the society. It would indicate the crucial details about the building i.e. year of construction of society, number of floors in the building, number of lifts, area of each apartment, number of rooms and their basic layouts etc.
- Copy of the property card, PAN card etc.
- Presenting person: Sub-registrar checks if the person presenting the document is the right person to present that document, the person should either be executing or claiming party/representatives. Also, it is verified that all the executants are present or not. After this has been verified, sub-registrar puts stamp no. 1 on the paper.
- Payment of fees: Sub-registrar issues the payment receipts when appropriate fee have been paid. He puts stamp no. 2 on document after verification of all the payments e.g. stamp duty, registration duty, pasting fee or any sort of penalties or miscellaneous charges.
- Photographs and thumb impression: Photograph of every executant and every person of the claiming party is required. All the thumb impressions are also taken generally on backside of the 2nd or the 3rd page of the document.
- Admission stamps: If the executing party is unable to visit the office of sub-registrar due to an unavoidable reason like permanent injury, critical illness, then sub-registrar might himself visit the person (appropriate charges paid for that visit). The details about his visit are noted in a dairy called Minute diary.
- 2 witnesses are needed for every executant and same two persons can serve as witness to all the executants.
- Identification of witnesses is done by taking names/signature and other details related to them such as their addresses and occupations etc.
- Sub-registrar affixes stamp no.3 after completing the identification.
- Sub-registrar keeps the document as pending if sufficient numbers of witnesses are not present on the occasion.
After sub-registrar finds all the documents at place, he orders the registration. Its serial number is issued along with Book no., page no. of that particular book, in which entry has been made. This concludes the process of property registration in India.
Alongside the receipt that sub-registrar provides you, a smart buyer must collect following documents from his seller:-
- Allotment letter: It consist of all the important details about the home/flat you want to buy; like the payment options, maintenance charges and other charges that you are required to pay in any stage of buying that property. This document is particularly important when you want to get loan from bank for the purchase of property. It will give bank all the important information about how much you are needed to pay, payment deadlines etc. This document is always needed while applying for a loan or finance.
- Occupancy certificate: As per laws, no builder can give possession of property to buyer until the buyer has obtained an occupancy certificate from local authority/body. It is an important document and has to be obtained by the buyer himself; Municipal Corporation issues this.
- Builder-buyer agreement: This is a very important document which consists of all the clauses, terms & conditions of the entire deal. In future, if any complication arises regarding the violation of terms of conduct from either side, this document will act as an instrument of ideal conduct.
- Possession certificate: When the buy is satisfied with the flat/home or a piece of land that he has purchased from a seller/builder, he has to sign a document called Possession certificate. Signing this means that you are satisfied with what you have got after the deal. In case of a flat, signing a Possession certificate means that you are satisfied with the room sizes, facilities and all the things that the seller has promised. 2 copies of this certificate are made; one remains with the buyer and other with the seller.
- Full payment break up: This is a very crucial document which signifies that buyer has settled all the payment which he had towards the builder. It is a final document of clearance. It should always be demanded by the buyer after he has concluded all the payments.
You will be required to sign on different documents at different points of time during the process of registration. Check and cross check all the clauses; in fact, make a habit of doubting the clauses and challenging them in buying immovable properties. Fraud is nothing but our ignorance. Before starting the process of buying a land/immovable property, always give a closer look to following points:
- Terms, conditions and clauses related to the payment
- Time frame in which project is subjected to complete
- Penalties, fines or any other default charges for buyers
- Sources of funding
- Approved plans for project layout
- Payment refunding, in case builder doesn’t match the specifications he promised
- Appropriate permit received by the builder in the land for construction
Have a safe deal!