Registering of a property needs to be carried out in cases of sale, transfer, lease, or any other way in which the property is disposed of. This is mandated under section 17 of the Indian registration act, 1908. Sometimes there are State laws that mandate the registration process ex. Section 4 of the Maharashtra Ownership Flats Act, 1963.
Once the registration process is successfully carried out, it implies that the person on whose name the property is registered becomes the lawful owner of the property and that he is responsible for the activities that are carried out in the property. Section 49 of the Indian Registration Act of 1908, also states that if the required document is not duly registered then that document will not have any bearing on the particular property. The law also does not recognize any unregistered owners and thus he will have no right over the property.
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Is the registration process of the property mandatory?
The term immovable property can be defined as any land, building, or any rights attached to these properties. Section 17 of the Indian Registration Act mandates the registration of the documents. The section states that all the properties sold for a price of more than Rs100 should be registered. This section also mandated that the gift or lease which lasts for more than 12 months needs to be registered.
The Registration Act mandates the registration process of the property to prevent fraud and future litigations on the same. The other objective of getting the registration process done is to maintain an updated public record of the property. The registration process can be completed in the Sub-Registration Office within whose jurisdiction the property is situated. It can also be registered with the district Sub-registrar of the district in which the property is located.
What is the procedure for the registration of the property?
The main procedure that needs to be followed while registering the property is stated below:
The verification of the property title:
The validity of the document will depend on the fact where the person making the transaction has the authority to transfer the right. Thus the documents must be verified. The exercise of due diligence needs to be carried to ensure that all the documents of the property are in place.
It is important that the documents are verified and that the property has a clear and marketable title. The banks and other financial institutions carry out their inspection procedures to ensure that the property’s title is verified before approving the loan for the investment. Thus it is to be stated that the onus lies on the buyer to ensure that all the documents of the property are verified.
Approach the Sub- Registrar:
For the sales transaction to be completed the sales deed must be presented for the registration process in the Sub-registrar’s office in whose jurisdiction the property is situated. A lawyer or a real estate agent can help you identify the location and the officer under whom the property falls
Stamp Duty and Sales Deed:
The schedule of the property should be correctly mentioned in the sales deed. If there is any structure in the property then that should also be mentioned in the deed along with the cost. An attorney on behalf of the purchaser is responsible to draft the sales deed. The deed is printed on a stamp paper and also contains relevant contents depending on the nature of the transfer which could be lease, sale, power of attorney, or mortgage. The stamp paper can be brought in person or online. The stamp duty is usually a percentage sum of the transaction which is imposed by the state government and the prices can vary from state to state.
Taking of appointment:
The registration fee needs to be made on a prior date and the receipt needs to be presented to the sub-registrar at least one day before the registration process. An appointment needs to be taken via phone and the registration processes should be carried out in the Sub-Registrar’s Office. The parties to the contract should approach the registrar’s office with two witnesses. The witness should carry their photographs and their identity proofs. It is also to be noted that two copies of the sales deed also needs to be carried to the registration office.
Submission of the documents:
After the verification of the various documents and the sales deed, the registration process can be completed according to the provisions of the Registration Act. After the registration process of the sales deed, you will receive a receipt from the registrar’s office. After the registration process is completed, then the registered document can be collected by signing the dispatch register. You can also authorize another person to collect them on your behalf. The sales deed must be registered with the appropriate Sub-registrar who keeps a copy of the sales deed and returns the original document.
Mutation of the title:
Once the registration process is completed then the buyer has to apply to the local government or to the municipal corporation to get the title of the property registered under his name. This process of the transfer is called as the mutation of the title.
After the registration process is completed, you can get the document verified with the information in the registry and the date from the registration office.
Summing up it is to be stated that the registration of the property is mandatory according to section 17 of the Indian Registration Act of 1908. According to the section, all the immovable property is transacted for an amount higher than Rs. 100 needs to be registered. This section mandates registration not only in case of sale but also in case of a gift, lease, or mortgage.