Frequently asked questions on property registration in India

[ecis2016.org] In this article, we answer some of the most frequently asked questions about property registration in India

An integral part of property transactions is its registration – a procedure that establishes a buyer’s legal ownership on the immovable asset. This is why all home buyers should be familiar with the norms regulating property registrations in India. In this article, we answer some of the most frequently asked questions about property registration in India.

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Is property registration a must?

Under the various provisions of the Registration Act, 1908, each time a property changes hands, it must be registered in the name of the new owner.  According to the Act, documents that are drafted to ‘create, declare, assign, limit or extinguish’ any right, title or interest of the value of Rs 100 or more, in an immovable property, must be registered. The same is true of documents drafted upon a court order transferring any right, title or interest of the value of Rs 100 or more in an immovable property. Under the law, registration of documents is legally obligatory, when a property changes ownership, because of a gift, or lease if the lease period is one year or more.

What are the charges for property registration?

At the time of registration, the buyer has to pay stamp duty and registration charges. While stamp duty varies from state to state, property registration typically costs 1% of the transaction value. In some states like Haryana and Maharashtra, there is also a flat fee for property registration.

Do women buyers get a discount in registration charges?

While women buyers enjoy discounts in stamp duty across states, no rebate is provided in case of registration charges. In Delhi, for example, women buyers have to pay only 4% as stamp duty, as compared to the 6% that men have to pay for property registration. However, both of them have to pay a 1% registration charge.

Should the seller/buyer be present at the time of registration?

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The buyer and the seller along with two witnesses each, should be present at the sub-registrar’s office at the time of registration. If the buyer or the seller is an NRI and cannot be present in person, then, their legal representatives holding a power of attorney have to be present.

How much time does it take for the documents to get registered?

It would take nearly two weeks for the registration process to be completed, after which you can collect the documents from the sub-registrar’s office. You will also get a notification on your registered mobile number, once the documents are ready for collection.

Till when can I collect the registration documents?

The sub-registrar’s office keeps the registered documents in its office for two years after the registration takes place. This is the period within which the buyer must collect these papers. After this period, the documents could be discarded by the office and the sub-registrar’s office will not be held responsible for the same. This is, however, not true in the case of a Will.  A registered Will can be collected from the sub-registrar’s office anytime within the lifetime of the creator.

What if I do not register the property?

As unregistered properties hold no legal validity, the owner, in spite of having taken possession of the property, runs the risk of losing the property.  Also, an unregistered sale deed will not be admissible as evidence in the court of law.

Can I register my property online?

In a majority of the states, buyers have to visit the sub-registrar’s office to register the properties. Some states have launched services, to help landlords register their properties online. This is done to offer hassle-free and time-bound services. Flats, as well as plots, can be registered using these online facilities.

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Can the sub-registrar reject my registration application?

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The sub-registrar can a property registration application on various grounds, including:

• Error in the text.
• Insufficient stamp duty.
• Absence of property-related documents.

What if there are false statements made in the documents?

If a buyer ‘intentionally makes any false statements, presents a false copy or translation of a document or a map or plan or attempts to falsely impersonate other people’, then, it is a punishable offence. Such a person could face imprisonment for up to seven years or a fine or both. This is prescribed under Section 82 of the Registration Act.

What are the documents of which registration is optional?

The registrations of some documents are optional. These are:

• Will
• Lease agreements, if the period mentioned is less than a year.
• If the deal value is less than Rs 100 in an immovable property.
• Documents that are created after a court order transferring any right, title or interest of the value of less than Rs 100 in an immovable property.

What property documents need not be registered?

Since there is no provision to register some documents under the Act, their registration is not required. These include:

• Land granted by the government.
• Property purchased from a civil or a revenue-officer at a public auction.
• Assets granted under the Charitable Endowments Act, 1890.

By when should I register the sale deed after it is created?

The deed must be registered within four months of getting created. The time is calculated from the date of execution of the deed.

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