The process for property registration in India has become quite simple with the introduction of the computerised property registration system. The new innovative system for property registration comes up with benefits such as the elimination of the middlemen and transparency in valuation. However, it has not entirely replaced the manual paperwork, and some states need you to submit an application form to the respective authority which shall be the Sub-Registrar or the SDM of your area. Moreover, the application form can be downloaded from the main website of the concerned department, or you can get the application form, from the relevant authority’s office.
The registration process includes making a stamp duty and paying the necessary registration fee for deed of sale and has the documents legally recorded with the sub-registrar of your area. The property registration process alters based on whether the property is directly purchased from a real estate developer or whether it is secondary sale of property and land. In the latter case, the process may cover stamp duty as well as the registration of transfer deed.
Property registration in India covers the following steps:
Verification of the title of the property and land: The documentation of property varies based on whether it is a secondary sale of the property or the property has been bought from a real estate developer. In the latter stage, due diligence would be simpler as the first landowner will have the property documents ready for the registration. The responsibility for the verification of the property title, though, lies on the buyer before the property registration.
Estimation of the property and land value: You have to estimate the real value of the property in your area or city for paying the stamp duty. The stamp duty charge will be calculated a percentage of; higher of the actual price spent for the property or the circle or market rate in your area.
Stamp Papers Preparation: Now you need to buy non-judicial stamp papers equal to the value of the stamp duty. You can buy stamp papers online (e-Stamp Paper) or purchase from the licensed stamp vendors.
Getting the deed of sale ready: This step involves preparation of the sale deed and get it typed on the stamp papers. It is prepared by an authorised lawyer on behalf of the buyer. The subject on the sale deed varies according to the nature of the transaction such as a sale, lease, power of attorney (POA), mortgage, etc.
Registration Charges and Payment of the Stamp Duty: Once you ready with the stamp papers, you can pay the stamp duty through the collector of stamps. The registration charges have to be paid earlier to the registration of the property in India.
Approach the Sub-Registrar for Registration: Now for the registration of the sale deed, you have to take an appointment with the sub-registrar. You have to visit to the sub registrar’s office along with 2 witnesses. All the individuals concerned in the process must to carry their photographs and also the identification documents. You should carry 2 copies of the deed of sale along with the original sale deed.
Documents Submission: Along with the deed of sale, you are needed to submit the important documents such as NOC (No Objection Certificate) if the building is located in the city collector’s land, ID and address proof, cash or DD for the payment of the stamp duty, passport size photographs of the individuals concerned in the transaction, etc.
Completion of Registration: Once all the property documents are verified, the registration process will get finished. You can then receive the duly registered documents. The sub-registrar will hand over the original property documents while maintaining a copy of the documents with him/her.
Timeline for the submission of property documents for Registration:
It is mandatory that all the property documents must be submitted for the registration within 4 months from the date of execution. In case if the documents being executed in abroad, it may be presented for registration within 4 months after the arrival of the documents in India.
What if the Property Registration is not done?
In case of the non-registration of property documents, as per section 49 of the Indian Registration Act, 1908, the non-registration of property documents does not grant any property rights over the property in India. In other words, the buyer will be acknowledged as the unrecognised property owner by the law and also will not have any rights over the property.