Unlocking The Secrets Of A Sale Deed Basic Concepts
Property

Unlocking The Secrets Of A Sale Deed Basic Concepts

In the realm of real estate transactions, the sale deed stands as a cornerstone document, encapsulating the transfer of property rights from one party to another. Understanding the nuances of a sale deed is crucial for anyone involved in property transactions. In this comprehensive guide, we will delve into the basic concepts of a sale deed, unlocking its secrets for a clearer understanding.

What is a Sale Deed?

A sale deed, also known as a conveyance deed, is a legal document that facilitates the transfer of ownership of immovable property from the seller to the buyer. It is a crucial document in any property transaction, as it establishes the buyer's lawful ownership over the property.

Key Elements of a Sale Deed

A sale deed typically contains several essential elements:

  1. Parties Involved: The sale deed identifies the parties involved in the transaction – the seller (transferor) and the buyer (transferee). Their details, including names, addresses, and identification numbers, are mentioned in the deed.

  2. Property Details: Precise details of the property being transferred are included in the sale deed. This includes the property's address, survey number, total area, boundaries, and any other relevant specifics that accurately describe the property.

  3. Consideration: Consideration refers to the monetary value agreed upon by the buyer and the seller for the property. The sale deed specifies the amount paid by the buyer to the seller as consideration for the transfer of ownership.

  4. Mode of Payment: The mode of payment – whether the consideration is paid in cash, cheque, or through other means – is mentioned in the sale deed.

  5. Rights and Liabilities: The sale deed outlines the rights and liabilities of both the buyer and the seller concerning the property. It may include clauses related to possession, encumbrances, easements, and any other pertinent conditions.

  6. Signatures and Witnesses: A sale deed must be signed by both the buyer and the seller in the presence of at least two witnesses. The witnesses must also sign the deed to attest to the authenticity of the transaction.

Registration of Sale Deed

One of the critical aspects of a sale deed is its registration. In most jurisdictions, including India, a sale deed must be registered to be legally valid. Registration of the sale deed involves the following steps:

  1. Stamp Duty Payment: Before registering the sale deed, the buyer must pay the applicable stamp duty based on the property's value. The stamp duty varies from one state or region to another.

  2. Document Submission: The buyer, seller, and witnesses must visit the sub-registrar's office or the relevant authority responsible for property registration. They must submit the sale deed along with the necessary supporting documents.

  3. Verification and Approval: The registrar or the authorized officer verifies the sale deed and supporting documents to ensure compliance with legal requirements. Once satisfied, the sale deed is approved for registration.

  4. Execution and Registration: After verification, the buyer and seller sign the sale deed in the registrar's presence. The registrar then officially registers the sale deed, and the buyer receives the registered document as proof of ownership.

Importance of Sale Deed

Understanding the importance of a sale deed is crucial for both buyers and sellers in a property transaction. Here are some key reasons why a sale deed is essential:

  1. Legal Validity: A registered sale deed is legally binding and serves as conclusive proof of ownership. It protects the buyer's rights and interests in the property.

  2. Title Verification: Before purchasing a property, buyers must conduct due diligence to verify the seller's title and ensure that there are no encumbrances or disputes. The sale deed plays a vital role in this process, as it provides details of the property's ownership history.

  3. Property Transfer: The sale deed facilitates the smooth transfer of property from the seller to the buyer. It ensures transparency and clarity in the transaction, reducing the risk of future disputes.

  4. Tax Implications: Property transactions, including the sale deed, may have tax implications for both the buyer and the seller. It is essential to understand the tax liabilities associated with property transactions and comply with applicable laws.

  5. Financial Security: For the buyer, a registered sale deed provides financial security and peace of mind, knowing that they have acquired legal ownership of the property.

Common Mistakes to Avoid

In property transactions, certain common mistakes can have significant repercussions. Here are some mistakes to avoid when dealing with a sale deed:

  1. Failure to Verify Title: Neglecting to conduct a thorough title search before purchasing a property can lead to legal complications and disputes in the future. It is essential to verify the seller's title and ensure clear ownership.

  2. Skipping Legal Documentation: Some buyers may be tempted to skip the registration process or draft their sale deed to save time or money. However, this can be a grave mistake, as an unregistered sale deed is not legally valid.

  3. Ignoring Legal Advice: Seeking legal advice from a qualified professional is crucial in property transactions. Ignoring legal advice or relying solely on the advice of the seller or real estate agent can result in costly mistakes.

  4. Incomplete Information: It is essential to ensure that all relevant details, including property specifications, payment terms, and other conditions, are accurately documented in the sale deed to avoid misunderstandings later on.

  5. Overlooking Encumbrances: Buyers must thoroughly investigate the property for any existing encumbrances, such as mortgages, liens, or easements. Failure to address these issues before purchasing the property can lead to complications.

Conclusion

A sale deed is a vital document in any property transaction, serving as the legal instrument for transferring ownership from the seller to the buyer. Understanding the basic concepts of a sale deed, including its key elements, registration process, and importance, is essential for anyone involved in real estate transactions. By following proper procedures, avoiding common mistakes, and seeking legal advice when necessary, buyers and sellers can ensure a smooth and legally sound property transaction.

 

  1. What is a sale deed, and why is it important in a property transaction?

    • A sale deed is a legal document that facilitates the transfer of ownership of immovable property from the seller to the buyer. It is crucial in property transactions as it establishes the buyer's lawful ownership over the property.
  2. What information does a sale deed typically include?

    • A sale deed includes details of the parties involved (seller and buyer), property description, consideration amount, mode of payment, rights and liabilities, and signatures of the parties and witnesses.
  3. Why is registration of a sale deed necessary, and what does it entail?

    • Registration of a sale deed is necessary to make it legally valid. The process involves paying stamp duty, submitting the document to the registrar, verification of documents, execution of the deed in the registrar's presence, and receiving the registered document as proof of ownership.
  4. How does a sale deed ensure the buyer's ownership rights?

    • A registered sale deed serves as conclusive proof of ownership, protecting the buyer's rights and interests in the property.
  5. What role does a sale deed play in verifying the property's title?

    • The sale deed provides details of the property's ownership history, enabling buyers to conduct due diligence and verify the seller's title to the property.
  6. What are some common mistakes to avoid when dealing with a sale deed?

    • Common mistakes include failing to verify the title, skipping legal documentation, ignoring legal advice, providing incomplete information, and overlooking encumbrances on the property.
  7. Can a sale deed be drafted without professional assistance?

    • While it is possible to draft a sale deed without professional assistance, it is not advisable. Seeking legal advice from a qualified professional can help ensure that the deed complies with legal requirements and protects the buyer's interests.
  8. What are the tax implications of a property transaction involving a sale deed?

    • Property transactions, including the sale deed, may have tax implications for both the buyer and the seller. It is essential to understand the tax liabilities associated with the transaction and comply with applicable laws.
  9. How can buyers ensure a smooth and legally sound property transaction?

    • By following proper procedures, conducting due diligence, avoiding common mistakes, and seeking legal advice when necessary, buyers can ensure a smooth and legally sound property transaction.
  10. What should buyers do if they encounter issues with a sale deed or property transaction?

    • Buyers should consult with legal professionals to address any issues or disputes arising from a sale deed or property transaction. Legal advice can help resolve conflicts and protect the buyer's interests effectively.
Everything You Need To Know About Conveyance Deed
Property

Everything You Need To Know About Conveyance Deed

Introduction

Buying a property is a significant milestone in anyone's life. It's not just about finding the perfect space to call home or setting up a business; it's also about navigating the legalities that come with property ownership. One crucial document in this process is the conveyance deed. In this comprehensive guide, we'll explore everything you need to know about conveyance deeds, from what they are to how they work and why they are essential.

 

Understanding Conveyance Deed: What is it?

A conveyance deed, also known as a property deed or title deed, is a legal document that transfers the ownership of a property from one party to another. It's a vital piece of paperwork in real estate transactions, as it ensures that the transfer of property is legally binding and recorded.

 

Components of a Conveyance Deed

A conveyance deed typically includes the following components:

1. Parties Involved: The names and details of the parties involved in the transaction, including the seller (transferor) and the buyer (transferee).

2. Description of the Property: A detailed description of the property being transferred, including its location, boundaries, and any other relevant details.

3. Consideration: The amount paid for the property, also known as the consideration. This can be in the form of money, other property, or a combination of both.

4. Terms and Conditions: Any terms and conditions agreed upon by the parties involved, such as the date of transfer, mode of payment, and any other specific agreements.

5. Signatures: Signatures of the parties involved, as well as witnesses and notaries, to authenticate the document.

 

Types of Conveyance Deeds

There are several types of conveyance deeds, each serving a specific purpose:

1. Sale Deed: This is the most common type of conveyance deed used to transfer ownership of a property from a seller to a buyer in exchange for a specified amount of money.

2. Gift Deed: In a gift deed, the property is transferred from one party to another without any monetary consideration. It is often used for transferring property between family members or as a charitable donation.

3. Exchange Deed: An exchange deed is used when two parties agree to exchange properties instead of buying and selling them. This can be useful when both parties desire properties owned by the other.

4. Partition Deed: A partition deed is used to divide jointly owned property among co-owners, typically in cases of inheritance or family disputes.

 

Importance of Conveyance Deed

A conveyance deed serves several important purposes:

1. Legal Protection: It provides legal protection to both the buyer and seller by documenting the terms of the property transfer and ensuring that the transaction is legally binding.

2. Proof of Ownership: It serves as proof of ownership for the buyer, allowing them to establish their title to the property and protect their interests in case of disputes.

3. Record Keeping: It creates a record of the property transaction, which can be useful for future reference or in legal proceedings.

4. Tax Purposes: It may be required for tax purposes, such as calculating capital gains tax or property taxes.

 

Process of Executing a Conveyance Deed

The process of executing a conveyance deed typically involves the following steps:

1. Drafting the Deed: The conveyance deed is drafted, either by a legal professional or by the parties involved in the transaction. It should accurately reflect the terms of the property transfer and comply with relevant legal requirements.

2. Execution: Once the deed is drafted, it is signed by the parties involved, as well as any witnesses and notaries required by law.

3. Stamp Duty and Registration: The deed is then stamped to pay the necessary stamp duty, which varies depending on the value of the property and local regulations. After paying the stamp duty, the deed is registered with the relevant authorities, typically the local land registry or sub-registrar's office.

4. Delivery of Possession: Finally, possession of the property is delivered to the buyer, completing the transfer of ownership.

 

Common Pitfalls to Avoid

While executing a conveyance deed, it's essential to avoid common pitfalls that could lead to legal complications or disputes:

1. Incomplete or Incorrect Information: Ensure that all relevant details are accurately included in the deed, such as the description of the property, consideration amount, and terms of the transaction.

2. Failure to Pay Stamp Duty: Failing to pay the required stamp duty can render the conveyance deed invalid and may result in penalties or legal consequences.

3. Lack of Legal Advice: It's advisable to seek legal advice when drafting or executing a conveyance deed to ensure compliance with relevant laws and regulations and to protect your interests.

4. Not Registering the Deed: Registration of the conveyance deed is essential to make the transfer of ownership legally valid. Failure to register the deed can lead to challenges to the property's ownership in the future.

 

Conclusion

A conveyance deed is a crucial document in property transactions, facilitating the legal transfer of ownership from one party to another. Understanding its components, types, and importance is essential for anyone involved in buying or selling property. By following the correct process and avoiding common pitfalls, you can ensure a smooth and legally sound transfer of property ownership. If you're ever in doubt, seeking legal advice is always a wise decision to safeguard your interests and ensure a successful property transaction.

 

 

FAQs About Conveyance Deed

1. What is a conveyance deed, and why is it important?

A conveyance deed is a legal document that transfers ownership of a property from one party to another. It is important because it provides legal protection to both the buyer and seller, serves as proof of ownership, and creates a record of the property transaction.

2. What are the different types of conveyance deeds?

There are several types of conveyance deeds, including sale deeds, gift deeds, exchange deeds, and partition deeds, each serving a specific purpose such as transferring ownership for consideration, gifting property, exchanging properties, or dividing jointly owned property.

3. What information is included in a conveyance deed?

A conveyance deed typically includes details of the parties involved, description of the property, consideration amount, terms and conditions of the transaction, and signatures of the parties, witnesses, and notaries.

4. What is the process of executing a conveyance deed?

The process involves drafting the deed, executing it by signing with witnesses and notaries, paying stamp duty, registering the deed with the relevant authorities, and finally delivering possession of the property to the buyer.

5. Why is stamp duty and registration important in conveyance deeds?

Stamp duty is important as it validates the conveyance deed and failure to pay it can render the deed invalid. Registration is essential to make the transfer of property ownership legally valid and provides evidence of ownership.

6. What are some common pitfalls to avoid when dealing with conveyance deeds?

Common pitfalls include incomplete or incorrect information in the deed, failure to pay stamp duty, lack of legal advice, and not registering the deed, which can lead to legal complications or challenges to property ownership in the future.

7. Can a conveyance deed be revoked or cancelled?

A conveyance deed can be revoked or cancelled under certain circumstances, such as fraud, coercion, or mistake. However, the process for revocation or cancellation varies depending on the laws of the jurisdiction.

8. Can a conveyance deed be challenged in court?

Yes, a conveyance deed can be challenged in court if there are disputes regarding its validity or terms. Legal recourse may be sought to resolve issues such as fraud, misrepresentation, or breach of contract.

9. Do I need legal assistance when dealing with a conveyance deed?

It is advisable to seek legal assistance when drafting or executing a conveyance deed to ensure compliance with relevant laws and regulations and to protect your interests. Legal advice can help avoid pitfalls and ensure a smooth property transaction.

10. How long does it take to complete a conveyance deed process?

The time taken to complete the conveyance deed process can vary depending on factors such as the complexity of the transaction, local regulations, and the efficiency of the parties involved. Generally, it can take a few weeks to a few months to complete the process from drafting to registration and possession delivery.

All you wanted to know about Online House Registration
Property

All you wanted to know about Online House Registration

If you have bought or otherwise acquired a house, this transaction needs to be registered. House registration is necessary for two reasons: 

  1. Every State maintains land records. The land record of every piece of land records the persons who have rights over that land. Hence, the land record for your house will reflect who has ownership over that house. For instance, if you are the owner, then it will mention you as the owner; if you have an easement over the land, then it will mention you as an easement-holder, and so on. 

  2. Unless you have inherited the house, the transaction by which you have acquired the house will not take effect until the transfer deed is registered. If this is the case, you need to register the house to acquire legal rights over it in the first place. 

People Also Read This: Property Registration Online Procedure and New Rules in India

House Registration Process

You will have to register your house with the local Sub-Registrar of Assurances, who has jurisdiction over the locality in which your house is located. 

Most states now allow some steps of house registration online. Depending on your State, a house registry online will be available for some (but not all) house registration procedure steps. For the remaining step[s] of the online house registry, you will need to visit the Sub-Registrar’s Office. Even in states which allow the maximum number of steps online, you have to make a single visit to the Sub-Registrar’s office.

The process typically involves the following steps:

  1. Book an appointment. You will get an appointment letter. 

  2. Pay the prescribed registration fees. You will get a receipt for the fees paid. 

  3. Present/Upload a copy of the transfer deed (the legal document by which you acquired the property, such as a Sale Agreement) and the identity proofs of the parties and witnesses. 

  4. The parties, and the witnesses, have to be physically present at the Sub-Registrar’s office at the date, and time, mentioned in the appointment letter. If all documents are in order, the Sub-Registrar will register the deed and return the original deed with the deed's registration number mentioned on it. 

Depending on your State, Steps 1, 2, or 3 can be done online. However, in every State, for Step 4, the parties and the witnesses must be present. 

The online house registration procedure for a rented house is the same as the online house registration procedure for any other house. 

People Also Read This: Flat Registration - Procedure, Charges and Required Documents

Online House Registration Check List

This online house registry checklist will help you ensure that all the requirements of the house registration procedure fulfilled: 

  1. Ensure that the transfer deed (the legal document by which you have acquired your house, such as a Sale Deed, a Gift Deed, etc.) is, in writing, signed by the parties, attested by at least two independent witnesses, and executed on stamp paper of value equal to the stamp duty payable on the transaction. 

  2. Pay the registration fees, and take a receipt. If your State allows this step to be done online, carry the receipt with you when you visit the Sub-Registrar’s office. 

  3. Some states may require you to present a true copy of the transfer deed. The Registration Rules of your State will specify this and tell you how to make a true copy (if a true copy is required).

  4. If this step is allowed to be done online in your State, upload copies of photographs, and identity proofs, of the parties and the attesting witnesses. In any case, carry copies, and originals, of all these documents at the time of visiting the Sub-Registrar’s office. 

  5. Ensure that all the parties and the attesting witnesses are present at the Sub-Registrar’s office on the appointment date and time. 

  6. The original transfer deed will be returned to you. If registration has been successfully done, ensure that the registration number is mentioned on the original deed with the Sub-Registrar's seal and signature

People who read this Article also Consulted a Lawyer about Property Registration process. 

Soumya Shekhar
Soumya Shekhar 03 min read 1107 Views
Online Property Registration
Property

Online Property Registration

It is essential to register the transfer of property in India, under Section 17 of the Registration Act, 1908. This Act governs the registration of transfer of immovable property in India. Registration is compulsory because the person in whose name the property is registered is the rightful and legal owner of the property. Registering a property involves various aspects. Stamp duty is levied on the registration. Registration rules of each state are different and hence, the process of registration depends upon the state where the property is located.

The property description with the number it bears, area, pin code, the property type: flat, plot, agricultural, mode of ownership: purchase, gift, lease, owner’s personal details: Name, age, occupation, parent’s name, proof of property: Title deed, power of attorney, etc. are required at the time of registering the property.

 

Procedure for Registration of Property

Several states have their websites for online registration like Kerala, Odisha, West Bengal, Karnataka, Tamil Nadu, Rajasthan, etc. For instance, in Bangalore, there is Kaveri Online Services(https://kaverionline.karnataka.gov.in). You can register as a user on these property registration websites. You can enter the details, such as the date of execution of the sale deed, total number of parties, and other details as part of document registration. You also need to provide ID proof-details of witnesses and buyers, property value, and the nature of the property you seek to register.

You can download the registration form for your land and the application form, from the website of the concerned authority’s office in the state. You can also visit the office and obtain the registration and application form offline. Properties in both urban and rural areas come under the jurisdiction of the State Government and are managed under a Tehsil (taluka or mandal). The e-registration of property (housing or commercial rental) is also on similar lines. The process will only differ if the land is vacant or occupied.

 

You will need to furnish the following documents at the time of registering the property:

  • Identity proof of parties- Aadhar Card, PAN card etc.)
  • Two passport photographs of parties involved
  • Sale deed
  • Power of authority in case the party is representing someone else.
  • If a company is a party then power of attorney/letter of authority, along with a copy of the resolution of the company’s board
  • property card
  • Acknowledgement of payment of stamp duty
  • Registration fee

People Also Read This: Land & Property Registration: All You Need To Know

Registration of Old Property

Registration of old property was slightly different than the properties bought recently. While the law governing was the same, the facilities of online procedure were not available. Registration should be completed within four months of execution of the transfer. Before technology was used, the documents submitted took four months to be returned from the registrar’s office. However, the new registration rules in 2019 and 2020 enable the documents to be returned the same day. It is easier to register a property in the present times than it was to register an old property.

Those who read this Article also Consulted a Lawyer about Property Registration process. 

Types of Land Registration

Registering property is the last and most important step after one has bought the property. If your property is not registered in your name then it would be difficult to prove ownership in the courts. If in the future some dispute arises then it is essential to have the property registered in your name. There are various ways in which you can register immovable property such as land:

1. Full Property Value: It is one of the simplest and most straightforward ways to execute a property registry. You register your property at the full value which you have paid for the same.

2. Property Value is Higher than Circle Rate: You can register at the full property value if the value is higher than the circle rate.

3. Property Value is Less than Circle Rate: You may register a property which is less in value than the circle rate. However, the difference between the circle rate and the actual sale value of the property is considered as income and is taxed at rates appropriate to the income slab.

4. Bank Valuation: While In some cases, banks insist borrowers register the property at either full property value or higher value.

5. Sale Certificate: Applicable only in the case of bank auction properties.

6. Undivided Share Value/Sale Agreement Value: To register a property at Undivided Share (UDS) is the most common practice. For an under-construction property, the builder signs two agreements with the buyer which are the Sale Agreement and Construction Agreement. The construction agreement is towards the construction cost of the flat/property. Builders register the property at sale agreement value or UDS. This practice is adopted to save stamp duty costs.

People Also Read This: Flat Registration Fee & Stamp Duty Charges

New rules for Property Registration in India 2020

The documents to be registered must be presented in four months starting from the registration date. As of 2020, due to computerization, copies of the documents are available on the same day. If a property is not registered, it will not serve as valid evidence in court. Unregistered property has no legal validity. In case the property is acquired by the government one cannot be entitled to compensation if the property has not been registered.

 

Stamp Duty Charges & Property Registration in India, 2020

Stamp duty which is a tax imposed by the government on the parties dealing in property transfer and is charged by the central and state government. The purchasers must pay the stamp duty charges on the agreement of sales that falls under Section 3 of the Indian Stamp Act, 1899.

Stamp Duty charges differ upon state rules also depends upon:

  • Property Status: Old or New
  • Property Location: rural area, City area, etc.
  • Owner’s age
  • Owner’s gender
  • Property utilization: Commercial or Residential
  • Property type: Flat or house

 

Property Registration Act

If you have entered into a transaction for the sale of immovable property and the value of such property exceeds INR 100, You need to register the same. Section 17 of the Registration Act, 1908 makes such registration compulsory. The Registration Act also provides for which documents are essential for the registration of property and which are optional. Fees for registration vary according to the state. If a property is not registered then it cannot be produced in the court as proof of ownership. Property should ideally be registered within four months of execution of the transfer. A maximum condonation of further four months may be allowed with the penalty for delay in registration. But the document needs to be presented for registration within eight months of execution of the transfer. 

Property registration is a complex procedure and ideally, help from a lawyer should be taken for the same. You should not delay registering your property and get the same registered within the stipulated time.

Soumya Shekhar
Soumya Shekhar 05 min read 4034 Views
DDA Flat Registration Scheme is a yearly "affordable housing" event
Property

DDA Flat Registration Scheme is a yearly "affordable housing" event

This post is one of the most frequently talked about topics of discussion when it comes to affordable housing. Yup, you guessed it right, we are talking about the Delhi Development Authority (DDA) Housing Scheme that is announced by the government on a yearly basis. This topic garners keen interest not only because affordable houses are offered to applicants via lucky draw but the scheme also covers a wide stratum of people, whether they are from the general category or from economically weaker groups or the reserved sections of the society like SC, ST, OBC, etc. As we progress in this post, you will have more insights on several aspects related to the DDA Flats Registration Scheme 2021 – what is the scheme about, its benefits and the general eligibility conditions, etc.

What is the DDA Flat Housing Registration scheme?

Briefly mentioning, under the Pradhan Mantri Awaas Yojna, DDA recently announced the housing registration scheme for the year 2021 wherein the authority has put for sale, more than 1300 flats of various types located at different locations in New Delhi. The sole aim of the scheme is to enable people to buy affordable houses as the houses being offered by DDA are priced cheaper compared to the houses sold by private real estate developers.

The ongoing pandemic has seen massive digitization of government services. DDA Housing Registration Scheme for 2021 has also followed the same path. The authority has completely automated the flats registration process. Some of the following online services are likely to be provided by the DDA to potential house buyers through its Awaas software:

  • Initiating the Online flat registration process by prospective buyers

  • Filling up the online flat registration form

  • Paying flat registration charges and fees

  • Conducting draw of lots under the supervision of authorized government officials

  • Issuing allotment and/or possession letters to the allottees

An important point to note in this scheme is that the allottee(s) may need to visit the office of the DDA for completing the conveyance deed execution process in his or her name.

People Also Read This: Flat Registration - Procedure, Documents Required and Stamp Duty Charges

Type of Flats being offered under the scheme and related registration charges

There are broadly four categories or types of flats that have been put for sale by the DDA under the current scheme. They are:

  • Higher Income Group (HIG) – The registration charges or application amount to be paid for this category of flats are Rs. 2 Lakhs.

  • Middle Income Group (MIG) – The registration charges or application amount to be paid for this category of flats are Rs. 2 Lakhs.

  • Lower Income Group (LIG) – The registration charges or application amount to be paid for this category of flats are Rs. 1 Lakh.

  • Economically Weaker Section (EWS) - The registration charges or application amount to be paid for this category of flats are Rs. 25 Thousand.

Some general conditions to be noted are:

  • The application once submitted cannot be withdrawn.

  • The spouses (husband and wife) can apply either separately or jointly with their spouse(s). However, if they apply separately/individually and both applications are selected in a lucky draw, only one flat will be allotted as per regulations.

  • The allotment of flats will happen via draw of lots, the date of which will be announced by DDA in due course.

  • The date of allotment will also be announced soon by the DDA.

  • The possession of flats will be given after allotment and receipt of the first payment by the DDA.

  • The DDA will initiate the refund of payment for an unsuccessful draw after 30 days from the date of draw of lots.

  • It is advisable to regularly visit the DDA website for information on the ‘lucky draw’.

Those who read this Article also Consulted a Lawyer about DDA Schemes. 

What are the eligibility conditions for putting a DDA housing scheme application?

As per DDA, any applicant interested in putting up an application needs to fulfill the following criteria:

  • Only a citizen of India can apply for the scheme.

  • Applicant must be over 18 years of age.

  • Applicant must not be an existing leasehold or freehold owner or joint owner of residential house or plot of size 67 square meters in Delhi, New Delhi, or Delhi cantonment.

  • Applicant must possess an active bank account.

  • Applicant must also have PAN Card.

  • Annual income of applicant applying under EWS category must not exceed Rs. 3 lakhs.

  • Household income of EWS category applicants should not be more than Rs. 10 lakhs.

People Also Read This: What is a Possession Certificate?

What documents are required for submission along with the application?

The applicant needs to submit the self-attested copies of the following documents:

  • Address Proof that may include documents like Driving License, Passport, Voter ID, Electricity Bill, Aadhaar Card, etc.

  • PAN Card

  • Bank Statement or Passbook

  • Income Tax Return filed for the assessment year

  • Reserved Category certificate, as applicable, issued by a competent government authority

Conclusion

The DDA Housing Scheme is a good opportunity for all those who are planning to buy a reasonable house in Delhi. The scheme has been created keeping in mind the budgetary constraints of people who dream to own a home. With several nationalized government and private banks providing housing loans at prevailing interest rates, the scheme definitely has the potential of being economical for the common citizen. We suggest you evaluate all your options including the legalities involved and register before the deadline ends if it fits your bill.

Nikhil Chachra
Nikhil Chachra 04 min read 702 Views
Know about flat Registration Rules in India
Property

Know about flat Registration Rules in India

Owning a home is a dream for many. But, did you know that you need to Register your flat after you buy it? A flat needs to be registered in accordance with the law prevalent in the state in which it is bought. Every state in India has different rules for Flat Registration. Builders need to register their property under RERA, whereas buyers need to register their flat with the local registrar. Let us examine what all is required to register a flat.

Importance of Flat Registry

Have you bought a flat recently? It is necessary to register this transaction. Registry of your flat is necessary for 2 reasons:

A flat is an immovable property. Thus, buying a flat is a transaction of immovable property. Such transactions do not take effect unless registered. Hence, it is necessary to register for the purchase of your flat.

Your flat, quite obviously, is standing on a particular land. As the owner of the flat, you have certain rights over that land. Once you register your flat, the state's land records will record your name as the lawful owner of your flat. This is a crucial piece of evidence which records what rights you have over your flat.

You can also register an under-construction flat. The common misconception is that a flat cannot be registered before possession and that it can only be registered after possession. But, this is not the case. In fact, banks insist on the registration of under-construction flats before granting home loans. While such registration protects the interest of banks, the entire risk is put on the shoulders of the homebuyer.

People also read: What is the right that a land ownership certificate gives to its holder?

Procedure for Flat Registration

When you bought your flat, you and the builder/seller will have executed a Sale Deed. This Sale Deed needs to be registered with the local Sub-Registrar of Assurances, who has jurisdiction over the locality in which your flat is located. Flat agreements in most states are registered online; however, the final step needs to be completed in the registrar's office.

The entire process typically involves the following steps:

  • Book an appointment for registering the Sale Deed: You need to register on the government's website and create a Login ID in most states. Then you need to upload the documents and book the appointment.
  • Pay the prescribed registration fees.
  • Attach copies of the Sale Deed and the identity proofs of the parties and the attesting witnesses.
  • The parties, and their attesting witnesses, have to be physically present at the Sub-Registrar's office at the date, and time, of the appointment.

Depending on which state your flat is located in, some of these steps can be conducted online. However, in every state, Step 4 must be conducted offline: one visit to the Sub-Registrar's office for this purpose is necessary.

For instance, for flat registration in Bangalore and the rest of Karnataka, Steps 1, 2, and 3 of the flat registration process can be conducted online on the Kaveri Online Portal. Similarly, for registering a flat in Pune and the rest of Maharashtra, Steps 1, 2, and 3 of the flat registration process can be conducted online on the IGR Maharashtra Portal.

People Also Read This: Land & Property Registration: All You Need To Know

Flat Registration Fee & Stamp Duty Charges

The exact registration cost for your flat will vary from state to state. Typically, the registration cost is about 1 - 3% of the market value of the flat.

Note that the flat's market value need not be the same price at which you have bought it. The sale price for your flat was determined between you and the builder/seller. This price can be quite literally anything. However, the market value of the flat is fixed and is calculated according to the rules of the state in which the flat is located. Most states now have online calculators available, which will give you a fairly precise estimate of the registration fees of your flat.

Documents Required for Registration of Flat

Those who read this Article also Consulted a Lawyer about Flat Registration process. 

The following documents are required for the registry of flats:

  • Appointment letter, obtained after booking an appointment with the respective Sub-Registrar's office.
  • Proof of payment of the required registration fees.
  • The original Sale Deed for your flat.
  • Identity proofs of the parties to, and the attesting witnesses of, the Sale Deed.
  • Copy of the Possession Letter issued by the seller/builder.