Property Registration in India: A Comprehensive Guide for the Newbie Homeowner!
Hey there, dear reader! Thinking of diving into the property market? Whether you're a first-time buyer or just looking to understand the process better, this guide will help you navigate the intricate world of property registration in India. And we promise to keep it conversational and straightforward. Ready? Let's dive in!
The ABCs of Property Registration
Before we jump into the 'how-to', let's quickly understand the 'what'. So, what's this property registration all about? Picture this - you buy a beautiful plot of land or perhaps a cozy apartment. Now, you'll want it legally documented that you're the proud owner, right? That's where property registration comes into play.
According to the Registration Act of 1908, any significant transaction like sale, gift, lease, or transfer of property has to be registered. And when we say 'significant', any property transaction over a mere Rs 100 falls into this category! If you skip this step? Well, you'll be left with a pretty piece of property that doesn't have legal backing. So, if any disputes arise, you're pretty much in a soup!
Documents You'll Need: Your Property Registration Starter Kit
Okay, so you're ready to register your property online. What's next? Gathering all the essential documents. Here's your checklist:
- Identity proof (like Aadhar Card, PAN card)
- Two passport-sized photos of all the parties involved
- The sale deed (that important piece of paper that says you bought the property)
- Power of attorney (if you're representing someone else)
- For companies: A letter of authority and a certificate of incorporation
- Property card
- Proof that you've paid the stamp duty and registration fee.
Documents that have to be mandatorily registered, should be presented within four months from the date of their execution, along with the requisite fee. In case the time limit has expired, you can make an application to the sub-registrar for condonation of the delay, within the next four months and the registrar may agree to register such documents, on payment of a fine that may be up to ten times the original registration fee.
Before You Register: A Few Things to Keep in Mind
Before you head over to the registrar's office, make sure you've ticked these boxes:
No Encumbrances: Double-check that there are no existing liabilities like mortgages or unpaid taxes linked to the property. An encumbrance is a thing which creates difficulty in transfer of property registration details from one owner to other for example outstanding mortgages, liens on real estate,unpaid property taxes etc.A buyer must check for any encumbrances on the property before buying and should get the property cleared from any encumbrances.This can be checked at the sub registrar’s office within whose jurisdiction the property comes.
Complete Document Chain: Ensure you have a clear record of how and when the property has changed hands in the past.Any buyer should check for all the chain of documents before buying a property.Chain of documents are the documents which specify when and how the property has been transferred from one owner to other.
Dues Cleared: Your new home should be free of dues – be it water, electricity, or property tax. It is the responsibility of the buyer to check this before registering the property.
Draft the Deed: Prepare a draft of your property deed (Sale Deed,Lease Deed,Gift Deed etc.) It should clearly mention details about the parties involved and the property with terms and conditions.
Stamp Duty: This government fee varies by state and is based on the property's market value.
After completing above mentioned steps execution of the deed takes place at the sub registrar's office under whose jurisdiction the property comes by signing or thumb impressions of the parties involved on the deed.
Advantages of Property Registration
Wondering why go through all this hassle? Here's what's in it for you:
Mutation of Title Deed: After registration, the new owner's name gets recorded in the Land Revenue Department. This also enables the government to levy property tax from the right owner. Handy for tax purposes! City Survey and Land Records Department is the governing authority on application for the mutation. After assessing the request for mutation, City Survey and Land Records Department decides the value of tax on the property and finally issues a letter of mutation in favour of the buyer.
Tax Benefits: Good news for taxpayers! Expenses like stamp duty and registration fees can be deducted from your total income under Section 80C.Under Section 80C of the I-T Act, an individual/HUF assessee is eligible to a deduction of stamp duty, registration fee and other expenses for the purpose of acquiring a house. This deduction is from gross total income. The maximum limit of deduction under Section 80C every financial year is Rs 1 lakh.
Crystal Clear Ownership: With a registered title, there's no need to delve into historical ownership records. A Registered Title gives a quick up-to-date official record of who owns the land and individuals do not have to do any research as to the history of the title to the land i.e. what in layman terms is ownership.
State-Guaranteed: A Registered Title is state guaranteed. If you have suffered a loss of an estate of interest in land property information because of a mistake or omission in the register by the Registrar you may be able to get compensation.
Ease of Dispute Resolution: Disputes regarding the ownership or rights over the land might be resolved more easily.
Prevents Encroachments: Once registered by plan each title is given an official plan of the land, and this can be used to prevent any encroachment by trespass on the boundaries.
And there you have it! A comprehensive guide to understanding and navigating the world of property registration in India. Remember, property is not just about bricks and mortar; it's an investment. Ensure you get all the paperwork right, so your investment stands on solid legal ground. Happy property hunting and registering!
FAQs:
1. How is property registered online? Property registration online is a move by the government to streamline the registration of immovable properties to avoid land disputes. With e-registration, the process has been simplified to provide evidence of titles and facilitate transactions. Introduced by the Land Registration Act of 2002, this system uses verified electronic signatures to transfer and register immovable property online.
2. Who is IGR? IGR stands for Inspector General of Registration. The Inspector General of Registration (IGR) is the head of the Stamp Duty & Registration Department. This official oversees the superintendence and administration of registration work.
3. What law is behind property registration in India? The property registration in India is governed by the Registration Act, 1908.
4. How do I calculate the stamp duty and registration fee? Stamp duty and registration fees vary from state to state. The stamp duty is based on the market value of the property involved. Apart from the stamp duty, there might be other charges depending on the market value of the property, making the overall property registration charges a sum of stamp duty registration charges, service charges, and other possible fees.
5. How do I check property registration online? You can check property registration online by visiting individual state government websites. For instance, for those in Maharashtra, you can find property registration details at this link: https://igrmaharashtra.gov.in/
6. Need a step-by-step guide for online property registration? For the step-by-step procedure for online property registration, please refer to the sections above in the original blog where the processes and prerequisites for property registration are explained in detail.
