The search for a perfect property implies that a property that can match your needs and that which comes under your budget. The purchasing process can become complex in cases of wrong advice. Thus it is advised to receive the help of a real estate agent that could help to view the various properties that match your needs within your budget. A professional property lawyer also needs to be employed in the transaction as it can help in avoiding any future legal conflicts and disputes.
The registration of the property deals with the process of recording all the documents of the property as the ownership and other rights in the property gets transferred from the old seller to the new buyer. The registration of properties is done in accordance with the Indian Registration Act of 1908 along with the various state policies relating to the same. By registering the property, you are legally entitled or guaranteed the ownership over that particular property for which the deed has been prepared. It also helps you in avoiding legal complications and from any kind of fraud as you can keep an updated public record on the same.
The registration process varies from state to state and so do the charges associated with the same. The sale of a property can also be made through oral or implied agreements however it needs to be expressly stated in an agreement and needs registration to avail legal backing in cases of disputes arising out of the property. The sales deed can be executed in the sub-registrar’s office after paying the relevant stamp duty. The mutation of the property is also recommended.
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Various Documents required for registration
The various documents required for the registration of a new apartment or plot includes:
The parties should produce identification proof for the registration process. Both the buyer and the seller have to produce documents showing their identification along with their address proof for the registration process. These documents include: PAN Card, Aadhaar Chard, Passport, voters Id, etc. two passport size photographs of the seller, buyer and the witness are also required. The witnesses are also required to produce documents proving his identity and address. All these documents need to be self-attested.
The buyer has to procure an encumbrance certificate before the actual registration process from the Sub-registrar of assurances. This provides the buyer with an overview of the ownership status of the property along with the mortgages and liens attached to the property. The buyer should ensure that the title of the property has been registered in the name of the seller who is selling the property and that he has a transferable interest in the property. The records of the last 30 years transaction can be obtained.
It is important to check if it contains the seal of the Tehsildar and if it is issued by the revenue department. Before the purchase is made, it is also important on the part of the buyer to exercise due diligence and ensure that the tax-related dues and the utility bills have been settled by the owner such as electricity bills, water bills, etc.
The sales deed of the property is an important document with the supreme power to establish ownership in a property. The original sales deed must be produced with the title deed and mother deed. The mother deed is the legal document that is used to prove the ownership of property. It is also the main document for sale for establishing the proof of his ownership. The mother deed contains details such as the location, road, door number, block and ward, details of surrounding properties, details of the parties involved, owner and transferor, consideration agreed upon, the advance amount paid, mode of payment, etc.
The sales deed needs to be read and verified. It should also be drafted in stamp paper after paying the relevant stamp duty imposed by each state. You will be required to produce the sales deed before the Sub-registrar’s office in whose jurisdiction the property is located. It is also an important document to be kept even after the registration process as it is essential in the sale of a resale property.
The buyer should also check if the tax dues that are pending on the property have been paid off by the seller before the purchase date. On the failure to check through the various tax bills, the buyer may suffer losses in the future. The Income-tax Act of 1968 also wants the buyer to pay TDS of one percent during the payment of the sales consideration under its section 198 for property valuing Rs 50, 00,000. The Act also emphasizes that the buyer should collect the Permanent Account Number (PAN) of the Seller and then further verify the same with the original PAN Card.
Power of Attorney (POA):
The seller should produce a power of attorney before the sub-registrar if he is someone representing the owner of the property. The Power Of Attorney should empower and authorize the person to make the sales transaction. Any transaction made by any such person without a Power of Attorney is invalid or treated ad invalid from the onset The purpose of the execution of the POA should be mentioned in detail along with the owner’s inability to be physically available for the sales transaction which could factor-like old age or being out of the state or country.
Other important documents that are required for the sale of the new apartment or property is that the building plan of the building needs to be checked to ensure that it is under the legal guidelines and that it is approved by the municipality or the local authority authorized to do so. After the registration process is completed you must acquire a mutation certificate along with the occupancy and completion certificate for availing the utility benefits in the property. A NOC from the builder should also be obtained.
A legally executed and registered power of attorney in blood relation can be used to register a property that has attained all clearances and completion certificate from the relevant authorities. India has a strict and lengthy documentation process when it comes to the transfer of immovable property. There are a lot of paper works that need to be undertaken before you finally own a property.
Thus it becomes important that you know all the documents related to the purchase and sale of the property. Summing up it is to state that stated above are few main documents that need to be presented at the time of registration. The documents listed above are all documents that need to cross-checked and verified during the due diligence process. Despite the process being lengthy, it is also beneficial to the buyer as it will help the buyer to avoid any future hassle which may be financial or legal on the property.