Why is Property Registration Important?
Registration of Properties Registration of property is governed by the Registration Act of 1908. In this regard, in the selling or buying of the property through inheritance or transfer, the ownership of the property is immediately noted by the government against the transaction, and based on this, the buyer and seller receive legal evidence of ownership over the property. This will make the law regarding ownership available and prohibit a later date for any frivolous wrangling, claims, or fraudulent intentions related to the property in issue. This is because once the property is registered, all the information about the property registered becomes public record.
Unregistered ownership is aimed at ensuring that the buyer does not own the property completely and, in some cases, the property can’t be sold or even let lawfully.
Pre-registration Deeds for registration of the property
Pre-registration requirements are designed in such a way that the transaction is legally and effectively in place before proceeding to register them:
Sale Deed: In case of sale deed, he transfers his interest in the property signed by the seller to the buyer. He transmits his ownership interest to the buyer. The draft has to be given by a legal practitioner; the parties have to sign on it.
Title Deed: It is proof that is about this property’s title history concerning the owner selling it. That is to say, there must be evidence that the person selling actually possesses valid rights which will enable him to sell this piece of property.
Certificate of Encumbrance Certificate (EC): This document clearly indicates that the property is free from encumbrances and liabilities like pending loans or mortgages.
Identity Proofs: Both the buyer and seller have to produce the identity proofs in the form of Aadhaar card, PAN card, and a passport.
Original Receipts of Property Tax: All original receipts of property tax have to be submitted so that it may reflect clearly that all dues have been paid and that there is no amount payable in the name of property tax to the tax department.
Apart from that, the following needs to be prepared at the time of application for the registration of a property:
– PoA- Power of Attorney (if any): If the person is buying or selling the property on behalf of someone else, then there needs to be legally registered PoA.
No Objection Certificate- Some of these properties are in restriction areas; in most cases, they require receiving a No Objection Certificate received from their respective authorities.
Step-by-Step Property Registration Process
The law-made registration process of Indian property is structured step by step. One needs to know each step to make it a more smoothened transaction.
Step 1: Documents Verification
All paper should be cross-checked at the time of registration against sale deed and title deed .
It must be attested and checked for completeness. Thus, it becomes very much a job best suited to legal experts .
Step 2. Drafting Sale Deed
The sale deed shall be prepared and executed by the seller and buyer; it must include, among others, the place of property, area, and an agreed price for the sale along with other salient features of the transaction.
Step 3: Payment of Stamp Duty and Registration Fee
The other very important feature of registration under the Indian law is stamp duty. Charges are again state-wise, between 5-7% of market value. There is yet another charge payable at times as 1/2% to the registrar’s office, and different charges are made online or at specified banks.
Step 4: Presentation before the Sub-Registrar’s Office
Once all these papers with the Sale Deed are prepared, both the buyer and the seller will head to the Sub-Registrar Office. His office is where both presented their respective papers in front of the Sub Registrar. Both parties would sign the sale deed. The Sub Registrar would even sign the signatures done by both the buyer and the seller over there.
Step 5: Verification by the Sub-Registrar
The Sub-Registrar shall scrutinize both the sale deed and other documents produced before them. The buyer and seller must provide identity proof. It should be satisfied that neither of the two is being coercively made to enter into such an agreement for sale.
Step 6: Collection of Biometric Details
Even biometric details comprising a fingerprint, and photographs of the buyer, seller, and witnesses are also obtained at the time of registration in many states.
Step 7: Final Registration and Issuance of Registered Sale Deed
The sub-registrar gets it registered after the verification. The registered sale deed will be issued with their names that will work as authentic evidence of the sale ownership of the buyer.
E-registration of properties in India
In the last few years, some states have also implemented online registration of properties. These are: Dharani (Telangana); and, IGRS (Andhra Pradesh) wherein online facilities to calculate stamp duty, book slots for registration and upload documents are provided. However, the final step has to be completed by personally visiting the office of the Sub-Registrar, yet a lot of time and effort can be saved by online registration.
Post-Registration Formalities
This formalities are to be attended after the registration process gets over, and these are a few that one has to attend to, namely:
Mutation of Property: The buyer has to get his property mutated in his name in the local municipal records. Thus, the liability of paying the taxes on the property will shift hands and fall on the new owner.
Check this from the original document if registered correctly, the sale deed. Most countries in this world today allow free access to such documents online through government websites.
Legal Ramification of failure to register property
Non-registration of property has very severe legal implications. The ownership rights will be lost to the owner, and accordingly, the court may declare that the purchase agreement is invalid. Further, selling properties which are not registered proves to be very hard because owners may claim their ownership rights over it. In other words, penalties due to non-compliance with registration laws will be imposed on the buyer .
Conclusion
Legal Procedure of Property Registration in India: This is the right time a person can have ownership and protection of an investment. The right knowledge of the procedure and the proper legal procedure will avoid pitfalls and create an arena that doesn’t let any problem arise before a buyer for safeguarding his rights. So, do the right and proper documentation, contact a legal expert, and take a while to finalize and undergo the registration procedure with due diligence. Such a very frequently monotonous process, in itself, seems quite tedious; however, it gives relief in the long run and protection of the law.
