Property Registration Process while Selling

A person is legally the owner of a piece of property only after that property is registered in his or her name. In order to property registration process, a sale deed must be made. This document shows that the property owner has changed from the seller to the buyer. But it’s not enough to just write up the sale deed.

The sale deed must be registered with the appropriate charges at the office of the Sub-registrar of Assurances in order for the legal ownership of the property to change and for the sale to be valid.

Getting a property registered is a complicated process. Even though the buyer usually takes care of most of the paperwork, you, as the seller, should still hire a lawyer with experience in property deals to make sure the registration process goes smoothly.

The sale agreement has all the terms and conditions of the sale, such as the amount of earnest money paid, the final selling price/sale consideration for the property, and the date the final payment, among others. This document is usually written by the lawyer for the buyer.

Once the sale agreement is written, the lawyer will send you a draft for you to look over and sign. You must read every word of the draft sale agreement to make sure that all the clauses are written as agreed upon by both parties and that nothing is out of place.

Even though the sale agreement is written on non-judicial stamp paper, it must be registered at the Sub-registrar of Assurances’ office. In some states, like Uttar Pradesh and Maharashtra, the sale agreement is only legally binding on the buyer if it is registered by paying the appropriate stamp duty and registration fees.

So, the lawyer for the buyer will make an appointment at the sub-office, the registrar’s where both you and the buyer will have to be. Before you sign the printed sale agreement, you should read it again to make sure that nothing has changed since the last time you agreed to it. Registering a sale agreement is the same as registering a sale deed, which we will talk about below.

To move forward, the buyer’s lawyer will use the information in the sale agreement to start making the sale deed. Remember that the sale deed is a separate document from the sale agreement. The sale deed is a legal proof of ownership, while the sale agreement is just a promise to sell the property in the future.

The buyer’s lawyer will then send you a draught of the sale deed, which you and your lawyer will need to look over and either confirm or ask to make changes or get rid of. After you confirm, the buyer will figure out how much stamp duty he or she has to pay based on the property’s final sale price or the circle rate, whichever is higher. For example, if the final selling price of a property is 50 lakh and the circle rate is Rs 35 lakh, the stamp duty will be based on the higher value, which is Rs 50 lakh.

The stamp duty varies from State to State and ranges from 3% to 9%. Unless something else is agreed upon, the stamp duty is usually paid by the buyer. The buyer will then get a stamp paper worth the amount of stamp duty paid. The sale deed will then be printed on it, based on what you confirmed.

As per the agreed-upon payment schedule and appointment date, you, the buyer, and two witnesses must go to the office of the Sub-registrar of Assurances, whose jurisdiction includes the property to be sold.

When it comes to witnesses, the buyer usually brings one and the seller brings the other. For this job, it’s best to choose a trusted family member or relative. The lawyer for the buyer will be there, and you may also choose to bring your own.

The buyer will give you a copy of the printed sale deed, which you should read again to make sure it’s the same as the draft sale deed you already agreed to. After that, the buyer will pay you the rest of the money for the property, as agreed.

It would be smart to take a Demand Draft (DD), which is a much safer way to get paid than a regular check, which may or may not clear when you go to the bank to cash it later. If the buyer gives you a DD, you should call the buyer’s bank branch to make sure the DD is real.

You can now sign the sale deed because you have received full payment for your property. Every page of the sale deed has to be signed by both you and the buyer. On the last page, the two witnesses will sign their names.

You, your lawyer, the buyer, the buyer’s lawyer, and the two witnesses have to go to the sub-office registrar’s unit as per the appointment. Then, he or she will look at the paperwork, which includes:

After looking over the papers and making sure the stamp duty has been paid, the registrar will ask you if you have received full payment from the buyer. If you say yes, the sub-registrar will sign the sale deed after you say yes.

After this, all parties will be required to submit their live photographs, signatures, and fingerprints. At this point, the buyer has to pay the registration fees. These fees vary from State to State, but they are usually capped at 1% of the sale price, or Rs 30,000.

The buyer will get a receipt for paying the registration fees after making the payment. While the buyer keeps the original receipt, you should also make a photocopy of it for your own records.

By going back to the sub-office registrar’s in one to three weeks, the buyer will be able to get the original registered sale deed. Make sure you have a copy of all of the pages of the original registered sale deed.

If you can’t go to the sub-office, registrar’s you can give someone else the authority to act on your behalf by giving them a Power of Attorney (PoA). During the registration process, you will also have to give this document.

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.