Property Registration in India: Rules, Documents, Charges

Property Registration in India: Rules, Documents, Charges

Property registration is the process of officially recording a property transaction with the local government authority, usually the sub-registrar office. This process is known as the Registry of Property. In India, a property value of 1% is charged as registration fees.

Property registration in India is a crucial legal process that ensures the transaction of property is officially recognized by the government. The registration is governed by the Indian Registration Act of 1908 and various state-specific rules and regulations. The key purpose of property registration is to give legal validity to the transaction and prevent fraud or disputes over property ownership.

Changes in Property Registration Rules:

1. Several states in India have introduced e-registration for property transactions, which allows property buyers and sellers to register their documents online.
2. Aadhaar number has become mandatory for both the buyer and the seller during the property registration process. This helps verify their identities and ensures transparency in property transactions
3. E-stamping: This has replaced the old stamp papers used for transferring property. It’s a lot safer because it reduces the risk of fake stamps.
4. Property registration valuation: States now require properties to be registered at either the market value or the guideline value, whichever is higher. This helps prevent people from underreporting the value of the property.
5. Digitization of Land Records- The digitization process includes the creation of online land registries, which will contain updated information about land titles, encumbrances, and other relevant property details.
6. NOC: Before registering a property, you need to get an NOC for it. Without it, you can’t complete the registration, and this step helps save time by making sure everything’s in order.

Optional Documents to Register:

1. Will: Registration isn’t required, but it’s a good idea to register a will to make it legally valid.
2. Rent agreement or property leases for up to 11 months: This is why most rent agreements are for 11 months – to avoid the need for registration.
3. Documents of past transactions: You can’t re-register these documents.
4. Court order for immovable property valued below Rs 100: Since the value is so low, the work and charges involved in registration aren’t worth it.
5. Certificate of sale: This document, given to buyers of foreclosed properties, doesn’t give you full ownership, so no need to register it.
6. Agreement of mortgage: It’s better to register this one too, to make sure it’s legally recognized.
7. Promissory note: This is just a document promising to pay someone, so registration isn’t needed.
8. Instrument of partition by a revenue officer: Since this has government approval, it doesn’t need to be registered.
9. Grant of immovable property by the government: The government is the full owner, so no registration is required.

Procedure for Property Registration:

To register property documents, submit them to the Sub-Registrar’s office where the property is located. Both the buyer and seller (or their representatives) need to be there with two witnesses. The signatories must bring ID proofs like Aadhaar or PAN cards. If someone is representing someone else, they must also provide a power of attorney. If a company is involved, the representative needs documents like a power of attorney or board resolution to authorize them for registration. You’ll need to show the property card, original documents, and proof of stamp duty payment to the Sub-Registrar. They’ll check if the stamp duty is paid correctly, and if not, they won’t register the documents. Stamp duty is a tax you pay for legal ownership, and registration is the fee for recording it. It varies by state, and women often get discounts. Also, witnesses play an important role. They’ll need to bring their ID and address proofs, and their biometric details will be scanned during the registration.

Time Limit & Charges:

Any documents that need to be registered should be submitted within four months from when they’re signed, along with the required fee. If you miss the deadline, you can request an extension from the sub-registrar within the next four months. The registrar might agree to register the documents, but you’ll have to pay a fine, which can be up to 10 times the original registration fee. The registration fee for property documents is 1% of the property value, but it can’t go over Rs 30,000.

Documents Required for Property Registration:

1. Sale Deed
2. Stamp Duty & Registration Fees Payment Proof
3. Identity Proof of Parties
4. Address Proof of Parties
5. Photographs Proof of Title of Seller
6. Property Documents
7. No Objection Certificate (NOC)
8. Encumbrance Certificate
9. PAN Card of Parties
10. Power of Attorney (if applicable)
11. Land Use Certificate (if applicable)
12. Agreement to Sell (if applicable)
13. Court Orders/Decree (if applicable)
14. Marriage Certificate (if applicable)
15. Tax Receipt/Assessment of Property