Easy steps or guide for property registration in India

Getting a property or an asset is one of the most significant investments for people as they put a major portion of their hard-earned money into it. Equally transfer of ownership is a complicated process – where it is mandatory to register the sales deed under the provisions of the registration act, 1908. Thus, it’s crucial for the buyer to know the process of registering the property in his or her name and to avoid the conflicts over the title of the property. Here’s a guide to the property registration process in India. Further, read on to know more about the easy steps and guide for property registration in India. Let’s have a look…

What is property registration?

Property registration is a process involving adequate stamping and paying the registration charges for a sales deed. The property registration process in India is governed by “Section 17” of the registration act, 1908. According to this act – all transactions that involve the sale of immovable property or asset (exceeding the value of Rs 100/-) should be registered.

What is the purpose of property registration?

Here’s a list of benefits offered by deed/property registration in India:

• Firstly registration property is conveying information to the public that the rooted property has been transferred by the owner to the buyer. 
• By registration an asset, the document of the transfer becomes a permanent record.
• Equally, any person can examine the public record and a certified copy of the document can be obtained.

Who can acquire any immovable property in India?

• A Person of Indian Origin (PIO)
• Non-Resident India (NRI, a citizen of India who is residing outside India)

What are the ways of acquiring any immovable property in India?

• Through purchase
• By way of inheritance
• By way of a will
• Through trust, gifts
• Grant by the government or court

List of documents required for property registration

For getting your property registered, there are some documents needed for a quick, easy registration process:

• Photo identity proof like - voters ID card or adhaar card of the property seller, buyer and the two witnesses required for the registration process.
• Two passport size photographs of the property buyer, including the owner of the property and two accompanying witnesses (required for registration).
• Latest, updated property register card of the property, clearly mentioning – that the property/asset is not owned or managed by the government of the nation or the state.
• A duplicate copy of the municipal tax bill
• A photocopy of the PAN cards of the seller and the buyer of the property.
• Incorporation certificate of the buyer as well as the seller (in case if the buyer is not an individual, but a company).

Steps involved in the property registration process in India

Verification of the title of the property – This is an important step, where a property buyer should enquire and verify the property’s title before registering it. Title or owner verification can be done with the help of an attorney.

Estimation of the property value - You have to get the value of your property estimated by a professional for paying the stamp duty. This can be done by studying the property rates in your area and by understanding the price of the latest few sales.

Preparation of the stamp papers – The next step is to buy non-judicial stamp papers, equivalent to the value of the stamp duty. You can visit an advocate or any licensed stamp papers for the property you intend to buy.

Getting the sale deed ready – This step involves preparation of the sale deed and gets it typed on the stamp papers. It is prepared by an authorized attorney on behalf of the buyer.

Payment of the stamp duty and registration charges – Once you have the stamp papers ready, you can pay the stamp duty through the collector of the stamps. 

Approach the sub-registrar for registration – Once the deed is prepared, both the parties along with the two witnesses have to visit the Sub Registrar’s office and get the deed registered by the authority. All the parties involved in the process need to carry their identification documents and photographs. 

Documents submission – Along with the sales deed, you are required to submit the requisite documents like No Objection Certificate, ID, address proof, passport size photographs (of the parties involved in the transaction), DD or cash for the payment of the stamp duty.

Completion of registration – Once, the documents are verified, the registration process will get completed. You can then collect the duly registered documents. The sub-registrar will hand over the original documents (while maintaining a copy of the documents with him or her).

What is stamp duty?

Stamp duty is a tax collected by the government under its jurisdiction for the purchase of the asset. The property purchase could be an independent house, a land, commercial or residential flat or villa. Stamp duty was introduced in India in the year 1899 and is a legal document, which acts as authentication in a court of law for the purchase or sale of any property. Equally, it is variable from one state to another and is collected as a percentage of the saleable value of the asset or property, during the registration process. 

Registration Charges

• Along with the stamp duty, the buyer also needs to pay the registration charges for the property. 
• Registration charges vary from state to state. It is calculated as a percentage of the saleable value of the property.
• The calculation of the stamp duty and registration charge is done based on guidance value (minimum value on which the property has to be registered), which is decided by the respective state government.
• States also collect stamp duty and registration charges based on the type of land or building. 

What if the property registration is not done?

As per section 49 of the Indian Registration Act, 1908 – if the property registration is not done, the buyer will be considered as the unrecognized owner by the law and will not have any rights over the property or asset. 

In conclusion

As stated earlier, it is crucial to register the property as it provides you the legal ownership of the property and helps at quashing the ownership dispute.