Without getting all the legal documents in place, the process of your home purchase is not complete. Here is how to do property registration in India to become the lawful owner of the property.
What is stamp duty on the property registration in India?
Stamp duty is a form of tax levied on any transaction through which people create or extinguish any right or liability. Gift deed, Sale deed, Partition deed, conveyance deed, power of attorney (POA) and lease deed are some of the legal documents on which stamp duty is payable. In real estate sector, stamp duty forms a major component of costs required in property registration in India.
The Registration Act and the Indian Stamp Act govern stamp duty. Stamp duty and registration charges are to be paid to state governments by the home buyer while transferring the ownership of property. State tax rates range from state to state. Moreover, Stamp duty charges and registration fees in most countries are paid in terms of percentage of the total transaction value.
Normally, states have higher stamp duty charges for urban areas and offer a rebate to women home buyers to support their ownership over family assets.
Registration of documents in sub-registrar offices in India
Once stamp duty is paid, the document ought to be registered under the Indian Registration Act. This process is done under the jurisdiction of the Sub-Registrar under whose local jurisdiction the land and property are situated. The primary purpose of registration of documents is to record the execution of the document. Unless the deeds are registered in the buyer’s name in the government records, the home purchaser does not become the approved owner of the property. An original copy of the property registration is kept with the Registrar which can be assigned to in case of a property dispute later.
Procedure of Property registration in India
Step 1: Evaluate the value of your property as per the circle rates in your area.
Step 2: Now, you have to compare the circle rate with the actual cost paid. For paying the stamp duty, the higher of the above two values would be suitable.
Step 3: You will now have to purchase non-judicial stamp papers of that value arrived at after the calculation.
Step 4: The non-judicial stamp papers can be purchased online or in person. You can buy these papers from licensed stamp vendors, Stamp duty can be paid via the Collector of Stamps, or a proof must be submitted if it is previously paid.
Step 5: Next, you have to get the deed prepared and also typed on stamp papers. The title matter varies according to the nature of the transaction, which could be a sale, mortgage, lease, power of attorney (POA), etc.
Step 6: Now, the transacting individuals have to approach the Sub-Registrar’s Office to get the deed registered, attended with two witnesses. Each person associated with the process should carry their respective photographs, identification papers, etc. An original copy of the deed, along with two photocopies of the same, should also be taken.
Step 7: When the sale deed gets registered, you get a receipt for it. After that, one can again approach the Sub-Registrar’s Office to receive the sale deed.
Step 8: Once you have received the original sale deed registered, you can also get the same confirmed by using the registry details and date from the Registrar’s Office.
So, this is how to register your property in India!