The registration of immovable property sale and purchase paperwork is required and enables the preservation of evidence, the avoidance of fraud, and the assurance of title. After a buyer purchases a property, the legal transfer of ownership occurs only when the immovable asset is registered in the government’s records in his name. Because the buyer is usually affected by the numerous financial ramifications, this complicated process necessitates that they have a thorough awareness of the regulations that govern such matters in India.
When a property is transferred from one person to another, the transaction must be formalised by registration at the sub-office registrar’s after certain fees, such as stamp duty, have been paid. The process is known as property registry.
The Indian Registration Act of 1908 governs the registration of documents. This law mandates the registration of numerous documents in order to ensure evidence preservation, fraud prevention, and title assurance.
What documents must be registered under the Registration Act of 1908?
The document that must be registered is described in Section 17 of the Act. The following are some of them:
1. Instrument of Immovable Property Gift.
2. Non-testamentary documents that pretend to create, assign, declare, or extinguish any interest in any immovable property valued at Rs. 100 or more, or that acknowledge receipt or payment of any price for the creation, assignment, declaration, or limitation of any right, title, or interest.
3. An immovable property is leased for a period of more than one year, or rent is paid on a yearly basis.
4. Contracts for the transfer of immovable property for a consideration, as defined in Section 53A of the Transfer of Property Act, 1882, that are executed before or after the act’s commencement.
Why is it necessary to register a document?
The following are some of the reasons why document registration is important:
1. As stated in section 17, some documents are required to be registered.
2. A registered document protects the property from fraud and misappropriation.
3. Registration can also be used as legal proof in court.
4. Registration informs people who may deal with a property about the nature and scope of any rights that people may have in relation to that property.
What documents are exempt from registration under the Registration Act of 1908?
The act’s section 18 describes the documents that are not required to be registered. The following are the details:
1. A court order containing an immovable property valued at less than Rs. 100.
2. Lease of immovable property for a period of not more than one year.
3. Non-testamentary instruments that purport to create, assign, declare, or extinguish any right, title, or interest in movable property.
4. Wills
5. Any other document not required to be registered under section 17.
The procedure for registering a property
The property documents that need to be registered should be sent to the Sub-Registrar of Assurances’ office in the jurisdiction where the property that is the subject of the transfer is located. The seller’s and buyer’s authorised signatories, as well as two witnesses, must be present for the paperwork to be registered.
The signatories should provide identification with them. Aadhaar Card, PAN Card, or any other government-issued proof of identity are among the documents that can be used for this purpose. If the signatories are acting on behalf of someone else, they must additionally provide authority. If a company is a party to the agreement, the person representing the company must bring appropriate documentation, such as a power of attorney/letter of authorization, as well as a copy of the company’s board resolution authorising him to complete the registration.
The property card, along with the original documents and proof of stamp duty payment, must be presented to the sub-registrar. The sub-registrar will check whether sufficient stamp duty has been paid for the property using the stamp duty ready reckoner before registering the documents. The registrar will refuse to register the documents if the stamp duty is insufficient.
Stamp duty is a payment paid to the government in exchange for obtaining legal ownership of an asset, whereas the registration fee is the cost of completing this legal formality in the government’s records. The amount of stamp duty varies by state. Women in most states are eligible for stamp duty exemptions.
It’s worth noting that witnesses are critical to the overall procedure. The two witnesses you intend to present during the registration will have to prove their identity to the sub-registrar as well. They should also bring their ID and address proofs with them for this reason. During the procedure, their biometric identity will be scanned as well.
Property registration has a certain time restriction and fees.
Documents that are required to be registered must be delivered within four months of their execution date, together with the required fee. If the time restriction has passed, you may apply to the sub-registrar for a delay condonation during the next four months, and the registrar may agree to register such documents in exchange for a fine of up to ten times the original registration price. The charge for registering property documents is one percent of the property’s worth, up to a maximum of Rs 30,000.
Previously, you would get your documents back after six months if you presented them for registration. The documents (carrying the registration number and proof that the documents have been registered by the registrar) are scanned and returned to you the same day, thanks to the computerisation of the sub-offices registrar’s.
What are the consequences of failing to register a document under Section 17 of the Act?
It is mentioned in Section 49 of the Act, which explains the consequences of failing to register a document that is required to be registered under the Transfer of Property Act, as well as Section 17. Unless it has been registered, it will not:
1. affect any immovable property contained therein;
2. confer any power to adopt; or
3. be accepted as evidence of any transaction affecting such property or conferring such power.
4. Section 49 is mandatory, and documents that are not registered cannot be used as evidence or in legal proceedings.
5. Any registered document may be used as evidence of a contract in a specific performance suit brought under Chapter II of the Specific Relief Act of 1877, or as evidence of part performance of a contract.
Is it possible to register a property without deeds?
In rural India, owning land without deeds is a very common problem. Although such instances are uncommon in metropolitan settings, there are some ways to register one’s property or land without a deed. In such circumstances, the landowner must file an application with the Land Registry Office to register the property. The owner must either demonstrate acceptable proof of his title or explain why the land deeds are missing, as well as the previous owner and other pertinent information. In India, such properties can only be registered if relevant information and documentation are provided.
Reference
1. https://www.latestlaws.com/articles/all-about-the-registration-act-1908
2. https://housing.com/news/laws-related-registration-property-transactions-india/
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