Everyone has a desire of owning a house. Buying a property is one of the most important investments for people, as they put a lot of their hard-earned money into it. So, it is crucial for the buyer to know the process of property registration on his/her behalf. Needless to say, it helps the buyer to gain the legal rights over the property and avoid disputes over the title of the property.
The following points will help you understand the importance of property registration and the procedure for the same.
Registration of Property/Land purchased by purchase
The Property or land registration in India is governed by Section 17 of the Registration Act of 1908. The act applies to the whole country, except the state of Jammu & Kashmir. The primary objective of the act is to ensure that the information on all transactions is maintained correctly and legitimate property/land records.
Procedure for Property Registration in India
The registration of property in India is quite easy with the introduction of the computerised property registration system. The IT system for property registration comes with advantages such as the elimination of middleman and the transparency in the valuation. However, it has not completely replaced the manual paperwork and some states require that you submit an application to the competent authority that is the SDM or the Sub-Registrar of your area. The registration application can be downloaded from the website of the concerned department, or you can obtain the form, from the competent concerned authority’s office.
The registration process involves the making a stamp duty and the payment of the required registration fee for the sale deed and the documents legally registered with the sub-registrar of your region. The process varies depending on whether the property is purchased directly from a developer or whether it is the secondary sale of the property. In the latter case, the procedure may include stamp duty and registration of the transfer deed.
Property registration in India includes the following steps:
• Verification of the title of property: The documentation of property varies depending on whether the property was purchased by a developer or is it a secondary sale. In the latter case, the due diligence would be easier because the first owner has the property documents ready for the registration. However, the obligation for the verification of the property title, however, lies on the buyer prior to the registration.
• Evaluation of the property: You must estimate the value of the property in your area for the payment of the stamp fee. Its value is calculated as a percentage of; higher the actual price for the property or the rate paid in your area.
• Preparation of the stamp papers: You are now required to buy non-judicial stamp papers which correspond to the value of the stamp duty. You can purchase stamp papers online (e-Stamp Paper) or from the licensed stamp vendors.
• Getting the sale deed ready: This step involves the preparation of the sale deed and gets it typed on the stamp papers. It is prepared by an authorized representative on behalf of the purchaser. The subject of the sale deed varies according to the nature of the transaction such as lease, sale, power of attorney, mortgage etc.
• Payment of stamp duty & Registration fees: Once you have the stamp papers ready, you can pay the duty through the collector of stamps. Registration fee must be paid before registration of the property.
• Approach to the Sub-Registrar for the registration: Now you must take an appointment with the sub-registrar for the registration of the sale deed. You must go to the sub-registrar along with two witnesses. All parties involved in the process must carry their photos and identification documents. You should carry two copies of the deed together with the original deed.
• Documentation submission: Together with the sale deed, you are obliged to submit the necessary documents, such as No Objection Certificate (NOC), if the building is located in the city collector’s land, ID and address verification, DD or cash for the payment of the stamp fee, passport size photos of the individuals involved in the transaction, etc.
• Completion of the registration: As soon as all documents are checked, the registration process is completed. You can then collect the duly registered documents. The sub-registrar will hand over the original documents while maintaining a copy of the documents with him/her.
In addition to the stamp duty, the buyer must also pay the registration fee for the property. Some of the most important points for registration fees are listed below:
• The registration fees vary from state to state and are calculated as a percentage of the property’s saleable value.
• The stamp duty and the registration price are calculated on the basis of the “Guidance Value” determined by the respective state government based on the location of the property. Guidance value is the minimum value on which the property must be registered. In other words, it is the saleable value of the property in the area or the actual saleable value of the property (whichever is high)
• States also calculate stamp fee and registration charges based on the type of building or land. For example, in case of independent houses, some states take into consideration the overall constructed area for the estimate of stamp and registration fees. While in the case of apartments, super built up area is considered for the calculation
• For most of the states, the registration charge is 1% of the saleable value.
As already mentioned, it is crucial to register the property as it gives you the legal ownership of the property and helps to eliminate property disputes. You can consider the following while registering the property to save money on stamp and registration fees
• Some states give concession for the registration of the property in the name of female members. Check and avail the facility.
• Always register the property at the Guidance value, which is the basic price for the property registration decided by the state government.
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