Laws Related to Registration of Property Transactions in India: Laws related to registration of property transactions in India
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15 November 2018 - 14:00, by , in Current News, No comments

The law of registration of documents is included in the Indian Registration Act. This legislation presents for the registration of various documents, to make sure conservation of proof, prevention of fraud & promise of the title.

Documents of Property Requiring Mandatory Registration

As per Section 17 of the Registration Act, 1908, all events that involve the sale of an immovable property for a worth exceeding Rs 100, ought to be registered. This effectively means that all the transactions of sale of immovable property got to be registered. As no immovable property can be bought for just Rs 100. In addition, all purchases of gift of an immovable property, as well as lease for a time exceeding twelve months, are also compulsorily needed to be enrolled.

In special cases, when a person to the transaction can’t come to the sub-registrar’s workplace. The sub-registrar may depute an officer to take the documents for registration, at the residence of such person. The term ‘immovable property’ includes land, buildings and any rights attached to these properties.

Procedure and documents required

The property documents that require being registered, ought to be presented to the office of the Sub-Registrar of Assurances within whose jurisdiction the capital, which is the subject matter of transfer, is situated. The authorized signatories for the seller & the buyer, have to be present along with 2 witnesses, for registration of the documents.

The signatories ought to carry their proof of identity. The documents accepted for this purpose include Aadhaar Card, PAN Card, or the other identities issued by a government. The signatories also have to furnish the power of authority, if they’re representing somebody else. In case a corporation is party to the agreement, the person serving the corporate has to carry satisfactory documents. Documents like power of attorney/letter of authority, along with a replica of the resolution of the organisation’s board, authorising him to carry out the registration.

You need to show the property card to the sub-registrar, along with the original documents & proof of payment of stamp duty. Before registering the papers, the sub-registrar will verify. Verification includes whether sufficient stamp duty has been given for the assets, as per the stamp duty ready reckoner. If there’s any deficit in the stamp duty, the registrar will refuse to register the documents.

Time Limit & Fee Payable

Documents that got to be compulsorily registered, ought to be presented within 4 months from the date of their execution, along with the necessary fee. In case the time limit has lapsed, you can make an application to the sub-registrar for condemnation of the delay, within the following four months & the registrar may agree to register such papers, on payment of a fine that may be up to 10 times the original registration fee. The registration fee for property documents is eighteen of the value of the property, subject to a maximum of 30,000 rupees.

Earlier, the papers that were presented for registration would be returned to you after six months. However, with computerisation of the provinces of the sub-registrar, the documents are scanned & returned to you on the very day.

Impact of Non-Registration

Failure to register the purchase agreement of a property, could put you at considerable risk. Any document that is very much required to be registered but is not registered. This document cannot be admitted as testimony in any court of law.

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