Buying a property is easier, but property registration is perhaps one of the most complex processes you have to undertake in order to become a lawful owner of your house. Under Section 17 of the Indian Registration Act, 1908, it is mandatory by law to register documents in relation to transfer, sale or lease of a property. The law does not recognize unregistered owners of a property nor does it provide them with any rights over it. The legalities and documentation process are however quite cumbersome and may seem to be confusing. Let us understand the process to ensure a smooth and hassle-free property registration:
- Verification of Title Deed: It is imperative to check the title deed of a property in order to ascertain that the property is registered under the name of the seller. Moreover, this also enables the buyer to check for any pending mortgages or encumbrances on the property and whether all dues relating to electricity, taxes, water bills etc. have been fully paid or not.
- Assessment of Property Value: The buyer can assess the value of the property by considering factors like local circle rates; housing market conditions etc. or seek valuation by a professional property expert.
- Prepare Stamp Papers: Every state in India is having their own stamp duty rates ranging from 3% to 10 %. Stamp duty is calculated by the circle rates or the actual price paid, whichever is higher. After arriving at the stamp duty value to be paid, the buyer needs to purchase non-judicial stamp papers of the same value.
- Prepare Sale Deed: The sale deed needs to be prepared, and various details of the transaction need to be typed and mentioned on the stamp papers.
- Pay Stamp Duty: Upon payment of stamp duty, a receipt along with the first page of the sale deed is issued with the printed words “stamp duty received”.
- Execution of Deed at the Sub Registrar’s Office: Both the buyer and the seller accompanied with two witnesses have to approach the Sub-Registrar’s office under whose jurisdiction the property falls. A receipt is issued on the registration of the sale deed, and a distinct number is assigned to the documentation.
- Document Submission: The documentation has to be then presented to the Reader of the Sub Registrar of assurances who will scrutinise the same and indicate the registration fee involved. Registration fee is usually the lower of 1 percent of the transaction value or Rs. 30,000 whichever is less. The registration fee is deposited against a receipt, and the documents are presented in front of the Sub Registrar.
- Transfer of Possession: Finally, the physical possession or keys of the property are handed over to the buyer by the seller to complete the transaction.
- Mutation of Title Deed: Mutation of title deed involves transferring the title of ownership of a property from the seller to the buyer. This process enables the buyer to get the property recorded in his name in the Land Revenue Department and pay property taxes on it thereon. On attaining the letter of mutation, the buyer then becomes the official owner of the purchased property.