Property Registration: Process

Property Registration is an important part of buying a home. Registration is probably the most complicated step in the whole process of buying a home. Even the smartest home buyers can get confused by all the rules and paperwork. So, it’s best to always get help from a good broker or real estate agent. You could also hire a lawyer to make sure that the property registration process goes smoothly and without any problems.

Section 17 of the Indian Registration Act of 1908 says that all documents related to the transfer, sale, or lease of a property must be registered. The legal owner of a piece of property is the person whose name is on the title.

But if the required documents are not properly registered, the law doesn’t recognize the owners and doesn’t give them any rights over the property. To give you a better idea of how the process works, we’ve broken down the steps involved in property registration and the documents you’ll need to make sure that your property registration process is correct and on time also.

I. Check at the office of the Sub-Registrar of Assurances for charges: You can do this by looking at the title deed or the property’s ownership status, such as mortgages or liens. You should make sure that the property’s title deed is in the name of the person selling it and that all the necessary paperwork is in place for the property registration.

The whole thing could take between 5 and 7 business days and cost around Rs 10,000.

II. The buyer’s lawyer puts together the final deed: The final sale deed of the property is made by the lawyer for the buyer. On green legal paper, the document is embossed, but the date and place are left blank. The document is then sent to be stamped. The lawyer’s fee varies, but it is usually 1% of the property’s value, and the whole process takes about a week.

III. Payment of stamp duty: For the Sale Deed to be stamped, the buyer must pay the stamp duty at a designated bank or an authorized collection center of the Stock Holding Corporation of India. The fees vary from state to state, but they are usually around 5% of the property’s real market value. This number is based on the property prices listed in the Ready Reckoner, a book that the Indian government puts out every year. Once the payment is made, the bank gives a receipt and writes “stamp duty received” on the first page of the printed Sale Deed. It doesn’t take more than a day to do this.

IV. Signing the final deed at the office of the Sub-Registrar of Assurances: In the area where the property is located. This must be done in the presence of the buyer, the seller, and two witnesses. Once the buyer, seller, and witnesses have signed the stamped deed and the document has been registered, it is given a unique number.

The paperwork is then given to the Reader of the Sub-Registrar of Assurances for review, and he or she tells the applicant how much the registration fee will be. Usually, the fee is 1% of the value of the transaction.

Act of 1908 says that the property registration fee must be paid to the cashier in exchange for a receipt. The document must then be shown to the Sub-Registrar. In half an hour, the paperwork is given back to the buyer. After that, the seller gives the buyer the property’s physical possessions (the keys).

V. Fill out an application to change the Title Deed: When a property is sold or given to someone else, the title ownership changes from one person to another. This is called “mutation.” This is important because it lets the new owner register the property in his name with the Land Revenue Department. This also lets the government find the right person to charge property tax.

The office of the City Survey and Land Records Department is where the change request is made. The authorized signer must send in the properly filled-out application form, the affidavit, the indemnity bond, and a copy of the registered Sale Deed that has been notarized. After looking at the request for a change, the City Survey and Land Records Department figures out how much tax the property is worth and then sends a letter of change to the buyer.

It takes about a month for the whole thing to happen. The process costs Rs 100 for the application fee, Rs 200 for the indemnity bond, Rs 100 for the affidavit, and Rs 50 for the notary fees.

Once the buyer gets the letter of mutation, he or she is legally the owner of the property that was bought. Since the process is very complicated and has many steps, it is best to get help from a real estate agent or consultant and a good lawyer.

Disclaimer: The opinions shown above are mainly for informational reasons and are based on market research. Deal Acres is not responsible for any actions made as a result of relying on the provided material and makes no representations as to its accuracy, completeness, or reliability.