If you are going to register your property, this article will help you explore new rules for property registration in India.
The Registration Act of 1908 is the regulator of property registration in India. The property registration process includes submitting required documents, paying fees and stamp duty, and signing documents by the seller and purchaser.
There is a law in force in India regarding immovable property and its transfer. This law is in the form of an Act known as the Registration Act of 1908. According to the new rules of property registration in India, if the sale crosses Rs 100, it has to be registered. Hence, it could be said to be compulsory to register whenever a sale and purchase of property or transfer of property occurs. There also exists a penalty provision in case of late registration of property.
Property Registration in India- Key Highlights
According to the new rules of property registration in India, It is compulsory to register your property in India if its value exceeds more than 100 rupees. If you don’t, it is a punishable offence. When a sale or purchase of an immovable property occurs, registration is necessary. Section 17 of the Registration Act 1908 governed online land registration in India.
According to government records, if your property does not get registered in your name in such cases, you will be the one to suffer losses since you will not be the owner, and you will not gain any economic profits from it. Also, if any dispute arises for the property, you will not be able to claim it. Thus, being a smart citizen of India, the first thing you do in India after buying a property should be to get it registered following the required protocols as directed by the Government of India.
Although finding and purchasing a property has become very easy nowadays, getting all the paperwork and registering it in government records has become complex and troublesome. Thus, for your convenience, we have noted down all the latest updated rules and regulations for the registration of property and all the necessary information you should be aware of if you want to register your property.
Provisions for Property Registration in India
Some provisions of new rules of property registration in India such as:
Registration Act, 1908: According to section 17 of the Registration Act of 1908, if the sale value of any immovable property exceeds Rs 100, its registration is compulsory.
Indian Stamp Act, 1889: In all the immovable property that requires registration, it is compulsory to pay stamp duties on all of them.
Main Strategy for Property Registration in India
According to the new rules of property registration in India, it is essential to follow this approach for property registration.
- Always check limitations during property registration in the office of the sub-registrar of assurances; checking the title deed or the property’s ownership status, such as any mortgages or liens, can aid you in this process.
- It is on you to ensure that the title deed registers in the name of the seller/ individual selling you the property and that all the required paperwork is present for its registration.
- Various states offer online registration websites, such as Kerala, Odisha, West Bengal, Karnataka, Tamil Nadu, Rajasthan, etc. To register your property, you first need to sign up as a user on these websites.
- You can add information such as the execution date of the sale deed, the total number of parties involved, and other necessary details as a part of document registration.
- You are also required to provide ID documentation, property value, buyer and witness information, and information about the types of property you want to register for successful property registration. Both the form for application and registration can download from the website of the State’s relevant body.
You need to download the application form from the concerned state government by downloading it from their websites, and the required details need to fill.
You must print the filled application on stamp paper, and all the parties involved must sign it.
Scrutiny and Clearance
During the inquiries from the office, an appropriate response needs to provide for conducting property registration with the relevant authorities. Also, all the involved parties must be at the sub-registrar’s office during the property registration.
Why do We Need Property Registration in India?
A property-related transaction calls for compulsory registration when expensive residential units and plots purchase. According to the provision listed in section 17 of the Registration Act, 1908, it is mandatory to register all transactions in the sale of immovable property where the total value exceeds Rs 100. It also implies that it is compulsory to register all the property, as it is logically not possible for immovable property value at less than Rs 100.
This same rule applies to a gift of property, as well. Although the donor would not be receiving any monetary consideration in exchange for the gifted property, the gift deed must register for getting legal validity. In addition to that, in case the duration of any leased property is greater than 12 months, it needs to be compulsorily registered.
Types of Land Registry
The land registry is the final and most crucial step after buying a property. It would be hard to establish ownership in court if your property is not registered in your name, and land can register in various ways.
Full Property Value
One of the most straightforward methods to execute a land registry is full property value. Your property shall register for the full price you paid.
The property value is higher than the circular rate
You may register the entire property value if the value exceeds the circular rate.
The property’s value is less than the circular rate:
This information can register. However, the disparity between the actual sale value and the circular rate of the property regards as income tax at rates applicable to the designated income slab.
In a few instances, banks demand that the borrower list the property at its full or higher worth.
Proof of Sale
This only applies to bank auction purchases.
Value of an Undivided Share
It is customary to register a property with an undivided share (UDS). A construction contract covers an apartment or other property’s construction costs of builders at contract value or UDS register properties. This approach uses to reduce the expense of stamp duty.
The following list of documents is necessary for property registration as per the new rules of property registration in India:
- Aadhar card
- Copy of the NOC as per the Land Ceiling Act.
- Copy of the current property registration card.
- Passport-size photo of the seller.
- Passport-size photo of the purchaser.
- Copy of the original sale deed that is verified.
- There is a written agreement between the seller and the actual purchaser.
- Copy of municipal tax bill.
- Construction completion certificate.
Fees for Property Registration
The new rules of property registration in India clearly state fees for property registration in India.
- There are different registration fees for businesses and residential properties. Residential businesses pay higher fees.
- As an item ages, the registration fees become less expensive because, as time passes, its value decreases.
- Land registration fees reduce if the property’s records are in the present deed rather than a sale deed and the name changes to a member of the immediate family. The government imposes a standard registration fee if the possessions transfer to any family member or not an immediate family member.
- The registration fees may be higher if the property is adjacent to a bus stop, train station, or airport; established cities and significant towns will also have higher registration fees. The authorities will offer a discount if the property is registered in a woman’s name.
Searching for and purchasing real estate is now easier, but registering properties is still necessary and time-consuming. However, there are several advantages if you register your property, so it is a worthwhile process in India.
It has undergone several modification processes, repeatedly demonstrated its efficacy, and introduced new rules of property registration in India. Numerous legislation, such as the Property Transfer Act of 1882, still need to be passed in India.
Is registration of property compulsory?
The transfer of ownership should register to ensure the title of the owner.
How much does it cost to register land in India?
The registration charge for property documents is 1% of the property's value, up to a maximum of Rs 30,000.
What is the specific period for property registration?
Within four months after their creation, the property should register.
What steps to take to register a property?
The office of the Sub-Registrar of Assurances, whose authority the property falls, should receive the papers that must be registered.
What are the needs for documents for property registration?
Any other form of government-issued identification proof, such as a PAN card or an Aadhaar card, is also acceptable for this purpose.