Land & Property Registration: All You Need To Know
Planning to buy land in India? If the value of the land or the property you are buying exceeds INR 100, you need to undergo land registration. Section 17 of the Registration Act, 1908 governs property and land registration in India. Typically, specific stamp duty needs to be paid, and 1% registration charges need to be paid. We will outline below how property and land registration work in India and what is the required procedure for the same.
Property Registration
Buying a property is a tedious process. It involves extensive market research and a considerable amount of time and money. However, it is not the searching for the property, which is the most complex part of buying a property, but property registration. The property registration process is confusing and involves various steps.
The property registration in India generally involves the following steps:
- 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: Get a sale deed drafted by lawyers for registration.
- Paying Stamp duty: Generally, a registration fee for a property document is 1% of the property value, subject to the maximum of INR 30,000. However, the stamp duty varies in each specific case, which is about 3-10% of the property value
- Approach the sub-registrar for registration: The seller and buyer, or the people having their power of attorney, along with two witnesses, have to approach the office of the Sub-Registrar of Assurances, within whose jurisdiction such property falls.
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Documents Required for Plot Registration
Following documents required for land registration:
- Two passport size photographs each of the buyer, the seller, and the two witnesses.
- Proof of Identities such as Passport, Aadhar Card, Voter ID Card, PAN Card or Driving License of the buyer, seller and the two witnesses.
- Copy of the latest property register card.
- Copy of the municipal tax bill.
- Proof of payment of stamp duty, registration tax, and payment to the seller.
- Copy of No Objection Certificate (NOC), if required.
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The duly registered documents can be collected from the Sub-registrar of Assurance’s office after 2-7 days. A certificate with all the requisite information is provided, and the original copy of the deed provided at the time of registration is returned.
Once the registration is complete, you need to apply for mutation. A mutation changes the title ownership. An application for mutation is filed along with an affidavit, indemnity bond, and a notarized copy of the registered sale deed.
You need to register your property within four months from the date of execution of the transaction. If you fail to register within four months, you may apply to the sub-registrar for condonation of delay. The registrar can agree to register your property; however, you may need to pay a fine of up to ten times the original registration fee.
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Online Land Registration
Technology has made property and land registration easier. Now, you can e-register your property. Some states have an official online portal for online land registration. You can also calculate stamp duty through these online portals. Net-banking, credit/debit cards, and other online payment modes have made e-registration of land and e-registration of property possible.
Guidelines for Online Property Registration
While online property registration is permitted in a few states, you should ideally keep the following in mind before you get your property registered online:
- Check if your state has an online portal for e-registration of land/e-registration of property.
- Only certain parts of property registration can be done online such as:
- You can find out the stamp duty rates.
- You can pay the stamp duty and registration fee online.
- You can receive a receipt for your payment online.
- Once you receive your receipt, you will have to visit the sub-registrar's office to complete your property registration.
- If the property value exceeds INR 50 lakhs, you have to pay 1% TDS on the property value. You can pay the TDS online.
- You will have to provide certain information for online property registration such as type of property, ownership status, description of the property, proof of property, and your personal details.
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Documents Required for Land Registration
When you go to the sub-registrar's office, you would need to submit the following documents for property registration:
- Sale deed on non-judicial stamp worth the deal value.
- Proof of Identities such as Passport, Aadhar Card, Voter ID Card, PAN Card, or Driving License.
- E-stamp paper, E-Registration fee receipt, and proof of payment to the seller.
- Copy of the latest property register card.
- Copy of the municipal tax bill.
- Copy of No Objection Certificate (NOC), if required.
These are the documents required for plot registration. You would also have to undergo a biometric verification at the sub-registrar's office. You need to take two witnesses with you to the sub-registrar's office. These witnesses will need to carry the original and photocopies of their identity and address proof. Remember, property registration is a must, and you should ideally register your property within four months of completing the sale. It is good to take legal help to draft the sale deed and navigate through the registration process.
Conclusion:
In conclusion we can say that land and property registration in India is a legal requirement for property buyers and is governed by state-specific laws. The registration process involves the transfer of ownership of a property from the seller to the buyer and the creation of a record of ownership. The registration of a property helps in establishing clear title and ensures that the property is free from any encumbrances or legal disputes. The registration process typically involves the payment of stamp duty and registration fees, which are determined based on the market value of the property. The registration process is typically carried out at the sub-registrar's office, and it is important to ensure that all required documents are in order before proceeding with the registration. Registration of a property is a crucial step in the property buying process and helps in protecting the interests of both the buyer and the seller.
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