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.
According to the Indian Registration Act of 1908, it is mandatory to get the property registered. The registration process is carried out on the production of the documents and payment of the registration fee.
When one purchases a property, its registration and the documents of sale and purchase are of utmost importance. All transactions involving the sale of the property must be above Rs 100 in order to be registered.
A government tax called stamp duty is levied on property transactions and collected at the time of registration. This tax is levied under Section 3 of the Indian Stamp Act, 1899.
Stamp duty and registration charges are levied by state governments and as such, these levies are subject to laws made by the states even though they are provided for by Central legislation.
The most common problems that buyers face when purchasing property is the lack of knowledge of the expenses associated with the transaction. A purchase transaction of residential property has several hidden costs that can add to the heavy cost a buyer has to bear for an immovable asset like a house.