Suppose you buy a Property Registration in India that costs more than INR 100, You will need to have the property registered. This is a legal requirement under the Indian Registration Act, of 1908. The registration process is simple and can be done online.
Once you have registered your property, you will be given a registration certificate. This certificate is proof that you are the owner of the property and can be used for legal purposes.
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Is Property Registration Mandatory?
Property Registration is required to register your property under Section 17 of the Registration Act. If the value of the property is less than INR 100 so it is not required.
Laws Applicable on Property Registration
There are 2 laws applicable to Property Registration:
1). Registration Act, 1908
As per section 17 of the Registration Act, 1908, the sale of all immovable property worth above INR 100 needs to be registered. This includes the transfer of property ownership from one person to another or the sale of property rights. The registration of the sale deed is an important legal requirement, and failure to do so can result in penalties.
2). Indian Stamp Act, 1889
The Indian Stamp Act, of 1889, is a central legislation that provides for the levy and collection of stamp duty on instruments that are to be registered. The Act applies to the whole of India, except the State of Jammu and Kashmir. The Act was last amended in 2019.
Things to check before registering a property
Registration of property in India can be a long and difficult process, with many potential consequences if it is not done correctly. There are a number of things that need to be taken into relation when registering property in India. Here are a few things you should check before registering a property.
1). documents – As a buyer, it is important to cross-check all the documents related to the transfer of ownership from one person to another. This will ensure that there are no legal problems associated with the property in question.
2). Due clearance – Before you buy a property, make sure to check for the electricity bill, water bill, taxes, and other potential costs are done!
3). Stamp duty – Based on the area stamp duty are different, so make sure you pay the correct stamp duty amount.
4). Deed – The terms and conditions of buyer and seller details, etc., must be drafted in a deed. The deed must be registered with the local land registry office in order to be legally binding.
5). Encumbrance – An encumbrance certificate is an official document that is issued by the Register office. It ensures that the property is free from any legal disputes or mortgages.
Documents required for land registration
One of the most important steps during land registration is the submission of documents. All land registries require certain documents to be submitted in order to complete the registration process. The registration process will take up to 7 days for registering in the metro cities it will take up to 3 days and for the rural area, it will take up to 7 days. The following documents are needed for land registration:
– Passport-size photo(buyer and seller)
– Identity proof, Aadhar card, Pan Card(buyer and seller)
– Power of attorney
– A copy of the municipal tax bill
– Verified Sale deed copy
– Construction completion certificate
– The latest property registers card copy
– Payment receipt of Stamp duty and registration fee
– Property Registers card copy
Land registration process
To register your property, follow these steps:
1). Calculate the value of your property depending upon the circle rate for that area and The stamp paper can be accepted online.
2). Depending upon the medium of payment, a deed must be present on stamp paper.
3). For the deed to get registered, both buyer and seller have to approach the sub-registrar office with witnesses. While going to the office make sure you carry the necessary documents.
4). Before the registration begins you have to pay the registration fee amount.
5). After all the documents verified your registration is completed and a receipt will be issued.
Online Property Registration
Now you can now register property online in a few states in India. This is a convenient and hassle-free way to register your property. However, it is important to note that such a service is only available in a few states. If you’re not sure whether your state offers this service, you can check with the local registrar’s office.
You have to calculate the stamp duty and pay the stamp duty and registration fee online through net banking, UPI and debit/credit card.
Property registration Fee Structure
The property registration fee varies state-wise, typically the registration fee ranges between 1%-3% of property value. The amount of tax you pay on the property you purchase will also differ depending on which state the property is located in.
City and their Land registration charges
– Delhi has 1% of the market value of the property, plus pasting charges of INR 100 Land registration charge.
– Mumbai has 1% of property value and INR 30,000 for property worth more than INR 30 lakh Land registration charge.
– Bangalore Hasa 1% property value Land registration charge
– Chennai also has a 1% of market value Land registration charge
New rules for registering property in India
As of 1 January 2020, a new set of rules for property registration in India came into effect. The purpose of these changes is to simplify the process of property registration and make it more efficient.
Some of the key changes that have been introduced include:
1). The requirement for property buyers to submit a self-declaration form at the time of registration.
2). The introduction of an e-registration system for all property transactions.
3). The negation of the practice of physical stamping of documents.
Advantages of property registration
There are many advantages to registering your property, including:
1). Protection from unauthorized use or sale of your property.
2). A public record of your ownership of the property
3). Easier to get a loan against your property
4). Increased “resale” value Property registration is therefore an important step in protecting your investment.