Land Registration: Secure Your Property Ownership

Land registration or property registration is the Registration of the document, transfer of ownership, and other matters involving immovable property.  It is crucial to get the immovable property or a residential land/plot registered, with the concerned authority to assure legal ownership, to produce evidence of title, facilitate transactions, and prevent unlawful disposal.

Under Section 17 of the Registration Act, 1908, it is the legal responsibility of buyers to undergo the process of land registration. The property owners have to pay a 1% registration charge and a certain portion of the deal value as stamp duty to the respective state governments.

 The land registration process is handled by the authorities of every individual state. Each state has its own property registration authority and procedures for the supporting, forms and registration charges to be paid.

Process of land registration/property registration-

Verification:

Verifying the property’s title deed would give you an idea of the property’s ownership status and any dues such as property tax, water/electricity bill, etc., which may be pending.

Preparation of Sale Deed:

Getting sale deed drafted by lawyers for Registration.

Payment of Stamp Duty:

The stamp duty varies in each specific case, which is about 3-10% of the property value. A registration fee of 18% of the property value is to be paid.

Registration in Sub-Registrar’s office:

The seller and buyer, or the people having their power of attorney, along with two witnesses, must approach the office of the Sub-Registrar of Assurances, within whose jurisdiction such property falls.

Documents required for Land Registration / Property Registration

1. Aadhar card

2. Passport-size of both seller and buyer

3. Verified copy of the initial old sale deed

4.  No objection certificate copy under the land ceiling Act

5. Copy of the most recent property register card

6. Copy of Municipal tax bill

7. Construction completion certificate

8. Initial agreement recorded between the builder and original purchaser of the building

The buyer should collect the following documents from the Sub-Registrar:

• Allotment Letter
• Occupancy certificate
•  Builder Buyer Agreement
•  Possession certificate
•  Full payment break-up document

After the completion of the registration process, you need to apply for mutation. A mutation changes the title ownership. Along with the application of mutation an affidavit, indemnity bond, and a notarized copy of the registered sale deed are submitted to the registrar.

The property needs to be registered within four months from the date of execution of the transaction. In case of any failure to register the property within four months, one may apply to the Sub-Registrars office for a pardon of delay. The registrar can comply with registering your property; however, you ought to pay a fine of 10 times the initial registration fee.

Online Land Registration

The government launched the online land registration process under the Digital India scheme to simplify the process of Registration. Online transfer and Registration of immovable property through verified electronic signatures was introduced by The Land Registration Act of 2002. E-registration has helped in preventing the unlawful disposal of land by providing evidence of titles and facilitating transactions online.

Through e-registration, only a part of the property registration process can be completed, such as:

• You can find the circle rate and evaluate the market value of the property online.
• You can evaluate the stamp duty rates.
• You’ll be able to pay the stamp tax and registration fee online.
• You can receive a receipt for your payment online and then visit the sub-registrar’s office to complete your property registration.
• If the value of the property exceeds Rs.50 lakhs, you need to pay 1% TDS on the property value, which can be paid online.
•  For online property registration, documents such as type of property, ownership status, description of the property, proof of property, and your details can be submitted online.

Now, lets us talk about Flat Registration, which is also an immovable property and is required to be registered. Under the RERA (Real Estate Regulatory Authority), Builders register their property, and the buyers register their flat with the local registrar. The registration process is similar to the land registration process.

Documents required for Registration of flats:

• Letter of Appointment- obtained after booking an appointment with the respective Sub-Registrar’s office
• Proof of payment of registration fees
• Flats original sale deed
• Identity proofs of the parties to, and also the attesting witnesses of, the Sale Deed
• Letter of possession issued by the seller/builder

Property registration is an essential process that enables the government to maintain a proper public record. It helps the City Survey and Land Records Department to decide the value of the tax on property and levy property tax from the right owner. An individual is eligible for deduction of stamp duty, registration fee, and other expenses under section 81 of the IT Act when acquiring a house.