Legal Guide

Ownership Certificate

by Nikky Jha · 3 min read

ownership certificate

An ownership Certificate is a certificate issued by the authority, be it Municipality or Government, as the case may be. The individual holding the certificate of ownership has the discretion to use the property for any purpose that may be suitable. This means that the individual has the power to sell the property, rent it or dispose of it in any manner suitable to him. 

As per the law, an individual can acquire the certificate of ownership in the form of a title deed for the land, or in the case of a vehicle, the individual can acquire the certificate issued by the regional transport authority.

Legal Meaning of Ownership Certificate

The dictionary meaning of the ownership certificate is a certificate stating the title to the property in the subject and that the specified property is free from any encumbrances. However, the legal meaning of ownership refers to the individual’s relationship with the property that he/she owns. 

It is the collection of all the rights that the individual has with the object in question. The concept of ownership arises from the concept of possession. The concept of ownership began to develop when people started building properties and cultivating lands. 

As per John Austin, an English legal theorist, ownership refers to “a right indefinite in point of the user, unrestricted in point of disposition and unlimited in point of duration.”

Consequences of Ownership Certificate

  1. Indefinite in Point of User – The owner of the property owns all the property rights and may use it in any manner suitable to them. No one else apart from the owner can use it for any other purpose. This right can only be availed if the owner has a legitimate ownership certificate.
  1. Unrestricted in Point of Disposition – If the need arises, the owner may decide to dispose of the property of his own free will. However, the individual can only dispose of the property if he/she has ownership of the property in the subject. This is subject to the existence of an ownership certificate.
  1. Right to Possess – With the ownership certificate, the owner derives his right to possession of the property or object. The right to possess can only be availed subject to an ownership certificate.
  1. Right to exhaust the object in possession – The ownership Certificate also grants the right to exhaust the object in possession, if it is exhaustible, to the owner. 
  1. Power to dispense with one or all rights – The owner of the property may dispense with one or all of its rights, and that doesn’t divest him of the ownership. This is subject to an ownership certificate.

Modes of taking Ownership Certificate

Generally, the subject matter of ownership consists of material objects like land, chattels, etc. the wealth and assets of a person, such as interests in the land, debts due to his shares in a company, patents, copyrights, etc., may also be the subject matter of ownership. Thus intangible rights may also constitute the subject matter of ownership. 

Moving on to the modes of acquiring ownership: –

  1. Original – An individual can be an owner of an object that had no owner, i.e., res nullius. In this scenario, the ownership can be acquired by way of possession.
  2. Derivative – The second mode of acquiring property ownership is the derivative method. This is by inheritance, gift, sale, etc. In this circumstance, the individual can be the owner of an object or property by following legitimate legal procedures. 

In a recent case, the honorable Supreme Court of India, in its judgment of Surendra Kumar Bhilwale v. The New India Company Assurance Limited dated June 18, 2020, reiterated that the individual in whose name the motor vehicle is registered would be treated as the owner of the vehicle, with respect to the Motor Vehicle Act, 1988.

Process of acquiring Ownership Certificate from Punjab Urban Development Authority 

In order to acquire the Ownership Certificate off a plot, flat, or property in Punjab, an individual has to apply to the Greater Mohali Area Development Authority (GMADA) in the manner prescribed henceforth: – 

  1. The individual is required to fill out the Application form. 
  2. The liability affidavit of the Purchaser or Donor Transferee has to be submitted. An affidavit from the seller of the property stating that the property is free from all kinds of encumbrances or any legal liability.
  3. Identity proof of seller and purchaser with a photo
  4. The details of the heirs of the purchaser, along with duly attested photographs.
  5. Clearances against loans and mortgages, if any. 
    1. A copy of the sanction of sewerage connection and occupation certificate, if obtained.
    2. Processing fees, Transfer Fees, Extension Fees, whichever is applicable. 

Further, in this regard, a Family Transfer means any transfer within the family which consists of a father, mother, son, daughter, husband, wife, and siblings. 

The transfer fee is applicable in the case where a permit is sought before the conveyance deed is issued. The fee is 2.5% of the allotment or auction price in the case of residential or commercial property and 5% of the allotment price in the case of a house. 

Property Registered in the Office of Sub-registrar, Chandigarh

The relevant documents like sale deed, agreement to sell, lease deed, rent deed, family settlement, partnership deed, gift deed, will, etc., are all registered by the office of the sub-registrar under the Indian Registration Act, 1908. 

All of these land documents, which are duly executed in true form between the parties associated with the documents as per the procedure prescribed in the law, are produced for registration before the sub-registrar, Chandigarh. 

Post satisfying the proper stamp duty and documentation, following with ascertaining the contents of the documents from the executor. It is required to be registered after verifying the identity of the executants from the two witnesses. 

Both witnesses must know each other. Further, the first witness must be recognized by the sub-registrar. In the case of rural areas, it is the lambardar, sarpanch, and a member of the panchayat. In the remaining cases, it is the councilor, gazetted officer, or advocates. Post all the requisites that are fulfilled, and the documents are registered. 

Post-registration, the ownership certificate is delivered to the parties associated on the same day. 

Ownership Certificate of Plot issued by Haryana Urban Development Authority

The allotment of the residential plots in the new sector is done by inviting applications in the newspapers. The plots in the subject are then allotted by conducting a draw of lots from the applications that have been received following the invitation made. 

All the applicants that have been selected from the draw of lots are then issued a letter of allotment by including all the terms and conditions of allotment and notified of the mode and schedule of payment. This procedure for allotment is made with respect to the provisions of the Haryana Urban Development Act, 1977. (HUDA)

Conclusion

Several countries recognize the right of ownership of property in India. It is guaranteed and protected by our constitution as well. The right of ownership is subject to many statutory laws and regulations. For example, the sale and transfer of land, the land reforms act, etc. 

The ownership certificate merely establishes this right of ownership in a documented format. The individual holding the certificate of ownership has the discretion to use the property for any purpose that may be suitable. This means that the individual has the power to sell the property, rent it or dispose of it in any manner suitable to him. 

To know more about acquiring the ownership certificate, get online legal advice

The ownership certificate merely establishes this right of ownership in a documented format. The individual holding the certificate of ownership has the discretion to use the property for any purpose that may be suitable. To know more about the process of acquiring an ownership certificate, get online legal advice

Nikky Jha

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