Sale Deed Drafting: Take utmost care before registry
Agreement & Contract

Sale Deed Drafting: Take utmost care before registry

Becoming an owner of your dream house was and is one of the top most wishes of any individual’s life. Afterall, the wiser people have said and still say – a self-owned house is a matter of one’s prestige and social security. However, buying a property (flat or floor or piece of land with or without construction) is slightly complicated, especially when it is your first transaction as a buyer. Besides the huge sums of money, several documents having legal bearing are required to successfully complete the transaction. An important point to remember here is that once you register the purchase document with the local or district office of the designated government authority, you become the first or second or nth owner in the sale chain. For your information, the zeroth owner is generally referred as the original allotee of the property.

 

Out of the long list of documents that are required for buying a property, Sale Deed is one of the most important legal documents that the buyer and seller must execute/register in the district sub-registrar’s office to formally complete the transaction. Before we move forward, let us understand the definition of a sale deed.

 

What is a sale deed and why it is important?

A sale deed is a legally binding agreement between the buyer and seller of the property that enables a seller to transfer the legal right and title of his or her property to the buyer. By executing this document or in other words, registering a sale deed in the district sub-registrar office, buyer(s) becomes the new owner of the property. Once registered successfully, seller(s) no longer remain the owner(s) of the property. Additionally, the heirs and legal representatives of the seller(s) no longer have any right or claim over the property.

ALSO READ: Know Various Aspects About The Gift Deed & Stamp Duty 

We must also understand several points as mentioned below that are extremely important from the property buyer’s perspective:

  • Seller(s) is referred as a Vendor in a sale deed
  • Buyer(s) is referred as a Vendee in a sale deed
  • Sale Deed has details of buyer, seller and witness – full name, address, age, pan number and aadhaar number
  • Sale deed also includes detailed description of the property that is being sold or bought
  • It is mandatory to register a sale deed with competent government authority to complete the transaction and is legally binding
  • Sale Deed document is drafted by a qualified property lawyer or advocate
  • Sale Deed document is printed on a stamp paper
  • Stamp duty and property registration fee is paid by the buyer to the state government where the property is located for getting the stamp paper from the competent authority
  • Sale deed has details of total amount paid by the buyer to seller for buying the property
  • Sale deed includes details of all the payments made (including TDS on property and stamp duty) by the buyer to the seller
  • Sale deed also has indemnity clause where seller assures the buyer that property is free from any disputes, incumbrances, mortgages or loans and has a clear title
  • Sale deed also includes assurance from seller to buyer that seller has paid all taxes, charges and loan payments on the property before completing the sale transaction
  • Sale deed also includes the details of possession of the property under consideration

 

ALSO READ:  Rates Of Stamp Duty On Gift Deeds Across Some Prominent Cities Of India

 

Role of a Property Lawyer or Advocate in drafting a sale deed

It is advisable that a property buyer must consider all the above-mentioned points carefully. However, it becomes imperative to draft a sale deed document in a proper manner before it is printed on the stamp paper and presented to competent authority for registration. Ultimately, no buyer would like to entertain post transaction issues due to a loosely worded sale deed agreement. Hence, the role of a property lawyer or advocate becomes extremely important.

Prperty Lawyer: Consult a Property Lawyer from here

A property lawyer is a specialised legal professional who can help the parties involved in drafting a sale deed document appropriately so that rights of the buyer remain protected at any given point post successful registration of a sale deed. A property lawyer, while drafting the sale deed can takes the following steps:

  • verifies the legal status or title of the property from the office of the competent authority
  • drafts sale deed document aptly based on the information provided by parties involved in property transaction
  • edits sale deed draft document in case any changes are suggested by parties involved in property transaction
  • presents final draft of sale deed and takes approval
  • prints approved sale deed draft on stamp paper
  • takes appointment from the sub-registrar’s office for registration of the sale deed
  • presents buyer, seller and witnesses along with all property documents on the date of appointment for execution of the sale deed (usually called as registry)
  • acts as, only sometimes, as a witness to the property transaction
  • collects the registered sale deed from sub-registrar’s office and hands it over to the new owner or buyer of the property

The process of drafting a sale deed is surely not simple and having a property lawyer or advocate who is equipped with knowledge of property laws is always advantageous. Any lapses will likely prove costly in the future. Taking advise from a legal expert is a right thing to do.

Duplicate Land Registration Document Process
Property

Duplicate Land Registration Document Process

Moving houses is a pain! Often in the process of moving, we end up losing important documents. A land registration document as proof of ownership. Losing a land registration document may not bode very well for you. You do not have to worry as there is a provision to obtain a duplicate land registration document.

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

How to get a duplicate land registration Document?

You should follow certain steps in order to get your duplicate land registration document. These steps are: 

  • File a police complaint

A land registration document is a crucial document. If it gets lost, then you should file a complaint with the police. The owner of the house should only file this complaint. He should also explain the complaint and state that the original documents were lost, misplaced, or stolen. Keep the copy of the complaint filed as it may be used to obtain the duplicate land registration document. 

  • Give an advertisement in the newspaper

Like with all lost things, one should publicize that a land registration document is lost and give the return address in the advertisement. If, within a certain time, no one comes forward to return the document, then you can proceed to the next step. 

  • Make an Application for the Certified Copy of the Land Registration Document

You will have to obtain a Form 22 application, either online or from the sub-registrar’s office. Fill this form and submit it with the sub-registrar to obtain a duplicate land registration document. If the document you have lost/misplaced is a patta record, you also have to apply it to the revenue office. 

  • A duplicate copy of the Land Registration Document

Once you have applied to receive the certified copy of the document, you need to pay a certain fee to the relevant department. After the fee has been paid, a duplicate copy of your land registration document shall be issued. Many would think that what if I had a photocopy, could I use that? The answer is no! You should always try to get a legally certified copy of the document which is lost. A land registration record is proof of ownership, and hence, you should always follow the due procedure of obtaining a duplicate copy of the land registration. 

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Documents Required to Obtain Duplicate Land Registration Copy

When you apply for a duplicate land registration copy, you should also accompany your application with certain documents. These documents are: 

  • Copy of FIR: As a first step, you should always file a complaint with the police. Keep the copy of the complaint with you and attach it with the application you file before the sub-registrar to get a duplicate copy of your land registration document. 

  • Copy of newspaper advertisement: You should also attach a copy of the advertisement you published in the newspaper along with your application form. This would enable the sub-registrar to know that you still have not found the lost/misplaced document despite trying. 

  • Copy of share certificates issued: Typically, you are given share certificates when you buy a piece of land. Keep them secure and attach copies of them when applying for a certified duplicate copy of land registration. 

  • Notarized undertaking: A notarized undertaking should also be given along with the application form. 

People Also Read This: Land Ownership Certificate indicates the actual Title of Ownership

Obtaining a duplicate copy of the land registration document should not be a harrowing experience if you know all the right steps to take. Remember to keep all your documents in order before applying for a certified duplicate copy of the land registration record.

Land Ownership Certificate indicates the actual Title of Ownership
Property

Land Ownership Certificate indicates the actual Title of Ownership

The year 2021 has begun on a positive note and the world is on its way to recovery – economic, physical as well as social. People have started planning for the future again. It will be modest to say that several of them are or will be devising plans for investing in real estate. Many will opt for residential properties and many more will go for land purchases – residential, commercial, or agricultural.

So, let us discuss today, an important aspect related to land and its ownership. Yes, you are right! We are talking about the land ownership certificate. In this article, we will clearly state what is a land ownership certificate, who issues the same, what is the process of obtaining it, and so on.

What is a land ownership certificate?

It is defined as a formal document or a certificate issued to a person(s) by a competent authority of a particular state where the piece of land physically exists. The land ownership certificate when issued in a particular person’s name proves that the particular person(s) is/are the sole owner(s) of the piece of land. The sole owner(s) in whose name the certificate is issued has all the legal rights pertaining to the particular piece of land. The land ownership certificate also is proof that there is no dispute related to the ownership of the land parcel under consideration.

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Who issues the ownership certificate of land?

It is the state government in India (usually the district revenue officer or the tehsildar) that issues the land ownership certificate to individuals residing in the state. The individual or person in whose name the certificate is issued, who is also called the owner, has all the legal rights to take decisions related to the particular piece of land. The owner, in other words, has freehold or leasehold right in the land parcel.

What is the right that a land ownership certificate gives to its holder?

It is very important to understand the legal rights of the owner who owns the land parcel and holds the ownership certificate in his or her name. The most common ones, as per government norms are:

  • Taking all decisions with respect to the piece of land under consideration.

  • Selling the land to an interested party.

  • Renting or leasing the piece of land to an interested party.

  • Constructing a building or structure on a particular land parcel.

What is the process of applying for a land owner certificate and what documents are required for filing the application?

The process is fairly simple and straightforward. The applicant needs to contact the office of the tehsildar or the revenue officer for filing an application to obtain a land ownership certificate. The applicant generally needs to provide detail like the legal name of the owner(s), residence address, contact details, details of the land parcel including registration number, area, location, address, etc. 

For filing the process, the applicant needs to submit the following documents along with the application:

  • Application Form (as per the prescribed format)

  • Identity Proof issued by a competent government authority (for example, PAN Card, Voter ID, Passport, Driving License, etc.)

  • Aadhaar Card

  • Registration Documents of Land Parcel

  • Encumbrance Certificate

  • Application Processing Fee (may vary from one state to the other)

Once the application is submitted along with the nominal processing fee, the documents are verified by the competent authority, which is the revenue officer or the tehsildar in this case. On successful verification of the documents, the competent officer issues the respective landowner certificate to the applicant.

People Also Read This: Land Patta Registration is the evidence of your Land Ownership

Format of the Land Ownership Certificate

A question may also arise in the minds of the applicants about the format of a land ownership certificate. The landowner certificate format may vary from state to state and can be issued by the respective state government in regional language as well besides issuing it in the English format. Generally, the certificate includes the following details:

  • Name of land owner

  • Name of father or husband

  • Residence address of the landowner

  • Plot number of the land parcel

  • Total area (expressed in square yards)

  • Place where land parcel exists

  • Name of the land parcel (if any)

  • Signature of the landowner

  • Details of the registration fee or stamp duty paid by the landowner

  • Signature of the district revenue officer or the tehsildar

  • Full name of the district revenue officer or the tehsildar

  • Official stamp of the competent government office or authority

  • Date of certificate issue

Those who read this Article also Consulted a Lawyer about Property Ownership documents. 

Conclusion

In a country like India, land record management is still not a streamlined process. While the computerization of land banks is taking place, there is still a long way to go. Ironically, several government departments are responsible for the proper management of land records but they usually work in silos. There is a high possibility of human error in the process. Any discrepancy in land records can be a nightmare for the actual land owner(s). And hence, having a proper land ownership certificate becomes more imperative for each land owner and must be taken with utmost seriousness.

Land & Property Registration: All You Need To Know
Property

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 Property Registration

You require the following documents for property 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.

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

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.

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

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.

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.

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

Why you should get your rent agreement registered?
Property

Why you should get your rent agreement registered?

Looking to rent out your house to someone? Make sure that you enter into a rental agreement first. A rental agreement is a legal contract signed between the landlord and the tenant. A tenancy agreement registration serves as valid proof in case of any potential dispute. If you are renting a property for at least 12 months or more, it is mandatory to have a registered rental agreement. However, if the rental agreement is set up for less than a year, it is not legally required to have a registered rental agreement.

DIFFERENCE BETWEEN A REGISTERED AND A NON-REGISTERED RENTAL AGREEMENT

The differences between a Registered and a Non-Registered Rental Agreement are as follows:

Registered Rental Agreement

Non-Registered Rental Agreement

Rental agreements for 12 months or more.

Rental agreements for a period of less than 12 months.

Can be admitted as proof in a court of law.

Difficult to present as evidence in a court of law.

A notary may notarize a non-registered rental agreement. However, even then, it may be admissible only as proof of address and may not be sufficient to protect the parties' rights. You can prepare a non-registered rental agreement on INR 50 or INR 100 Stamp paper issued by the state.

Hence, in an 11-month rental agreement, registration is not mandatory. You would have noticed that typically, tenancy agreements are for 11 months. You may choose to enter into an 11-month rental agreement to avoid the compulsory registration requirement.

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RENTAL AGREEMENT REGISTRATION

If the rental agreement is drafted for 12 months or more, then a rental agreement registration becomes essential. You can register a rental agreement at the registrar’s office in that city. The registration fee of a registered rental agreement differs from state to state. The registered rental agreement is legally binding on both the parties and is admissible as proof in a court of law.

A landlord may rent out his property for differing periods. Stamp duty on the rented property depends upon the time for which the property is rented:

Time

Payable Stamp Duty

Rental agreements between 1 to 5 years

 

2% of thrice the average annual rent.

 

Rental agreements between 6 to 10 years

 

2% of four times the average annual rent.

 

Rental agreements between 11 to 20 years

 

2% of five times the average annual rent

Rental agreements beyond 20 years

 

2% of the six times the average annual rent.

 

Only the rental agreements of more than one year should be registered. For other rental agreements that are of less than one year (for example, 11 months), notarizing it with the notary public and paying the stamp duty is good enough and credible.

Now that we have understood the basics of rental agreement registration, let us understand the procedure for registration of a rental agreement:

  • Get a rental agreement drafted by a lawyer.
  • If you are the tenant, you need to get the rental agreement printed on a specific value stamp paper.
  • Both tenants and landlords need to sign at the designated places on the rental agreements.
  • Get the signature of two witnesses who are not related to either the landlord or the tenant.
  • After this, both the tenant and the landlord must be physically present at the sub-registrar’s office of their sub-locality.
  • Both tenants and the landlord, and two witnesses need to carry their two passport-sized photos and ID cards for verification and validation.
  • Any third person or any agent cannot carry out the registration of the rental agreement.
  • As soon as you pay the stamp duty, the registration is complete.

The registration fee for a rental deed agreement is typically around INR 1100. The rental agreement registration fee is payable regardless of the rental amount or the property value. The stamp duty charges are also applicable to the registration fee for the rent agreement.

Documents Required for Rent Agreement Registration

Following documents are required for a registered rent agreement:

  • Original ownership documents or title deed.
  • Two passport-sized photographs (tenants, landlords, and two witnesses).
  • Aadhar card
  • A government authorized identity proof (voter Id, passport, driving license, etc.)
  • If the tenant is a company, then an authorization letter from the company is required. This authorization would validate the tenant’s right to register.

Online Rental Agreement Registration

In today’s world, whether it is about buying products or choosing services, most individuals look at nowhere else but the internet. The same situation can also be seen when it comes to making a Rental Agreement. However, there are only a few states in India which allow online rental agreements. Let’s find out how registering rent agreement online works.

Process for Online Rental Agreement Registration:

The process to get an online registered rent agreement is as follows:

  • Firstly, visit the authorized government website.
  • Find out the online rent agreement option on the main page.
  • Choose your jurisdiction from the given list.
  • Provide your details required in the form.
  • Fill in the details of the other party.
  • Submit the details of tenant, identifiers, and landlord
  • Now move to the next step, i.e., rental agreement information, and fill in the details

The documents required for an online registered rent agreement are:

  • PAN card and Aadhar number of tenants, landlord, and two witnesses.
  • A biometric scanner to scan thumb.

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How to Create a Rent Agreement Draft?

A registered rent agreement sample is typically available online on many websites. A rental deed agreement should contain the following elements:

  • Names and addresses of the landlord and the tenant.
  • A brief description of the property.
  • The date by which the rent would need to be paid.
  • What would be the mode of the rent payment?
  • Exit options.
  • Amount of refundable security deposit and how and when would it be refunded?
  • What utilities are provided to the tenant?
  • What facilities can the tenant use?

A rent deed means a contract between the landlord and the tenant, and hence, it should serve not only as proof of the tenancy but also as an instrument to protect the parties' rights. Hence, it is preferred that you consult a local lawyer before drawing up a rental deed agreement and get clarity regarding registration, stamp duty, etc.