PROCEDURE AND BENEFITS OF PROPERTY REGISTRATION

PROCEDURE AND BENEFITS OF PROPERTY REGISTRATION

DOCUMENTS REQUIRED FOR PROPERTY REGISTRATION ONLINE

Along with the online filled form we need to attach the following documents

Identity proof of parties involved(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 the party is a company then power of attorney/letter of authority, along with a copy of the resolution of the company’s board, authorizing him to carry out the registration, certificate of incorporation
property card
proof of payment of stamp duty and registration fee

Documents that have to be mandatorily registered, should be presented within four months from the date of their execution, along with the requisite fee. In case the time limit has expired, you can make an application to the sub-registrar for condonation of the delay, within the next four months and the registrar may agree to register such documents, on payment of a fine that may be up to ten times the original registration fee. The registration fee for property documents is 1% of property valuation, subject to a maximum of Rs 30,000.

STEPS TO TAKE BEFORE REGISTERING A PROPERTY

Encumbrances: An encumbrance is a thing that creates difficulty in the transfer of property registration details from one owner to another for example outstanding mortgages, liens on real estate, unpaid property taxes, etc. A buyer must check for any encumbrances on the property before buying and should get the property cleared from any encumbrances. This can be checked at the sub registrar’s office within whose jurisdiction the property comes.
Chain of Documents: Any buyer should check for all the chain of documents before buying a property. A chain of documents is the documents that specify when and how the property has been transferred from one owner to other.

Payment of Dues: Any property should be free from any dues like property taxes, electricity bills, water bills, etc. It is the responsibility of the buyer to check this before registering the property.

Preparation of Deed:A draft of the deed(Sale Deed, Lease Deed, Gift Deed, etc.) that needs to be executed must be prepared on which the details of all the parties involved and the property involved along with terms and conditions must be mentioned clearly before registering the deed.

Stamp duty calculation: Stamp duty is the fee charged by the government and it varies from state to state. Stamp duty is calculated on the basis of the market value of the property involved.

After completing above mentioned steps execution of the deed takes place at the sub registrar’s office under whose jurisdiction the property comes by signing or thumb impressions of the parties involved on the deed.

ADVANTAGES OF PROPERTY REGISTRATION

Security– unregistered land is at a higher risk of fraud. Fraudsters can assume your identity and attempt to sell or mortgage your property without your knowledge. Registration helps you to protect your property from fraud and resist any third-party applications for adverse possession, commonly referred to as “squatter’s rights”.
Evidence of ownership– registration makes it easier to buy and sell the property as all the title information necessary for conveyancing will be in the Land Register, which is available online for everyone to see. The Land Registry will collate all the relevant information that they need from the historic deeds and will then recite only the relevant information within three registers which form part of the registered title.
Reduced future costs– the cost of first registration depends on the value of your property. There is a 25% reduction for voluntary first registrations. The voluntary first registration is when you choose to register your property rather than having to because, for example, you are selling it or taking out a mortgage on it.
Clarity– registration makes it easier for conveyancers to ascertain who owns the property and what benefits and burdens are attached to the land. If the land is unregistered, the conveyancer has to review the original deeds. Deeds can be lengthy handwritten documents, which can be difficult to read and interpret. Reviewing the deeds can increase the time the transaction takes to complete because the conveyancer will need to wait for the deeds, check the chain of ownership is correct, and then draft the contract.
Certainty– In addition to the registered title to the property, the Land Registry will also provide a title plan which provides evidence of the extent of the property. This makes it easier for a buyer to identify the boundaries of their property and check that their understanding of the extent of the property is the same as shown on the title plan. Registration also provides a state-backed guarantee securing the title to the property, meaning that the state guarantees that the legal estate is vested in the registered owner.

PROPERTY REGISTRATION CHARGES IN DIFFERENT CITIES IN INDIA

Name of the City	Charges
Bangalore	1% of the total market value of the property
Delhi	1% of the total market value of the sale deed plus Rs.100 pasting charge
Mumbai	1% of the total market or agreed value of the property or Rs.30,000 whichever is lesser.
Chennai	1% of the total market value of the property
Kolkata	1% of the total market value of the property