Investing in real estate is a great choice as you invest a major portion of your hard earned money. Everyone dreams of having a house of their own, but the basic yet the most important thing a house buyer must know about is property registration.
Property registration completes your ownership of the property. Registering the property with your own name helps you gain the legal right to the property and will also help you avoid any dispute in future related to the property you have bought. And in this article, we will be telling you each and every detail related to property registration. Here, have a look!
What is Property Registration?
Property registration is a process of registering the documents related to your property according to section 17 of the Registration Act, 1908. When you register the purchased property, you need to pay stamp duty and registration charges for the same.
When you purchase a flat or property directly from the builder, the registration of property gives you the right to legally use, own and dispose of the property. And when you purchase a flat or a property which is being transferred from one hand to another for the second time, you will have to pay stamp duty and registration charges.
The process of property registration is done at the office of the sub-registrar that has jurisdiction over the area in which the property is situated or bought. In Indian states, land registration involves a computerized process, where middlemen are not required.
Property Registration In Delhi
In Delhi, property registration is handled by Revenue Department. It also handles land registration through 15 Sub-Registrar Office of the concerned subdivision. Delhi has 11 districts and 33 subdivisions, 3 per district. Delhi property registration ensures the ownership rights of the right property owner. And to have a hassle-free registration of the property, it is really important to have a real-estate attorney brief.
Online Property Registration in Delhi
- An applicant has to log onto the state revenue department’s website and download the form for online property registration. The stamp duty that has to be paid can be calculated with the help of the online calculator following which the applicant can buy an e-stamp paper.
- The applicant should then fix an appointment over the phone or online at the e- registrar’s office on a specific date and time.
- Once the appointment is fixed, the applicant will have to enter the office with an electronic access card followed by verification of his documents and identity.
- Once the documents are verified, the applicant will be guided directly to the concerned person.
Property Document Due-Diligence
Before purchasing a property, it is really important to do a thorough due-diligence on the validity of the property with the help of a Lawyer experienced in property matters. Here are some of the important areas that you must verify during a property document check:
Mother Deed or Parent Documents
Parent document or mother deed is a very important legal document that helps to check the ownership of property. But, these documents must have been registered and would be required for availing property. In case, there is no parent document available then you can obtain the copies from the registering authorities.
Building Plan Approval
If there is a building on the land, then building plan approval must have been obtained from the relevant authorities. Building plan approval can be checked against the actual built-up property to be sure of that there are no deviations.
Encumbrance Certificate
Encumbrance certificate can come in help for an insight into all the transactions that have been on the property. It can be used to check for evidence of any legally registered transaction that affects the property. It is important to obtain the certificate up to 15 years to ensure there are no unforeseen liabilities attached.
Property Tax Receipts
You must check the property tax receipts to ensure that the taxes of the property have been paid until the date of property sale. It is also very important to ensure that the name of the owner on the tax receipt matches with the seller of the property.
Procedure for property registration
1) Take appointment from the office of concerned sub-registrar under whose the situated property is registered.
2) The signed copy of duplicate title deed along with a form that needs to be presented at the document counter of the office of sub-registrar along with the e-appointment slip.
3) Both the parties, that is the vendor, the vendee and the two witnesses along with their identification proofs need to be present at the time of property registration.
4) You may also be required to produce past chain of title documents at the time of property registration.
5) Then the documents are verified by a clerk who takes the thumb and finger impression of both vendor and vendee.
6) The sub-registrar comes into the picture only after the preliminary examination and formalities are completed. Sub-registrar verifies the original title documents and ID cards of all parties take digital photographs of both the parties along with witnesses and issues a receipt to collect the original title deed.
Documents required for property registration:
- 2 passport size pictures of seller and buyer;
- Two witnesses;
- ID card of each party and witnesses;
- If the property is under lease from D.D.A., Industries Department, M.C.D., Labor Department of Delhi Govt. etc., permission of lessor for registration of the document.
- A no objection certificate is required that comes under the section 8 of Delhi land Act, 1972.
- Permission from the Authority in the prescribed proforma 37 I
- Income tax clearance certificate is required when the transaction exceeds from Rs 5 Lakh
What if property registration is not done?
In case, the land registration is not done, and then as per section of Indian registration act, 1908, you will not be granted the property rights on the property that is not registered. And the buyer will be considered unrecognized owner by the law and you cannot sell that property to any third party. Thus, property registration is important to become a lawful owner of your home.
What is Stamp Duty?
Stamp duty is government tax imposed on property transactions. It is payable under the Section 3 of the Indian Stamp Act, 1899. One needs to pay the stamp duty at the time of property registration. The amount of stamp duty varies from city to city and also according to the real estate type.
Since stamp duty is added to the cost of the property, it is better to have an idea before you finalise the deal of your property. One need to pay stamp duty on time, otherwise, you will be charged penalty for the delay. Any kind of delay in payment will pull in 2% per month to the maximum of 200% of the deficit amount of stamp duty.
Stamp duty Charges in Delhi
The charges applicable to property registration document in Delhi are:
- Stamp duty is @4% if it is done by a woman and @6% if it is done by a man
- The registration fee is 1% of total value of Sale Deed + Rs. 100/- as pasting charge.
So, these were all the details regarding property registration.
