The process of property registration involves legal formalities to transfer ownership from one party to another. However, there are times when a property owner wishes to cancel or revoke the registration of their property. This can happen due to various reasons, such as disputes, financial constraints, or personal choices. In this blog, we will discuss the ways in which the registration of a property can be cancelled.
Property Registration in India
Property registration is the legal process of transferring ownership rights from one party to another. It is an important step in buying or selling a property and involves a series of legal formalities to ensure that the transfer of ownership is valid and legal. Property registration is usually done through the government or any other authorized entity and involves the following steps:
Verification of documents:
- The first step in property registration is the verification of the documents related to the property. This includes the sale agreement, title deed, property tax receipts, and other relevant documents. The government authorities verify these documents to ensure that the property is legally owned by the seller and that there are no disputes or pending legal cases related to the property.
Payment of stamp duty and registration fees:
- Once the documents are verified, the parties involved in the property transaction need to pay the stamp duty and registration fees. The stamp duty is a tax levied by the government on the property transaction, while the registration fee is charged for the registration of the property.
Execution of sale deed:
- After the payment of stamp duty and registration fees, the parties need to execute a sale deed. The sale deed is a legal document that transfers ownership rights from the seller to the buyer. The sale deed includes details such as the name of the parties involved, the description of the property, and the consideration amount.
Registration of sale deed:
- Once the sale deed is executed, it needs to be registered with the concerned authority. The registration of the sale deed is done in the presence of a sub-registrar or any other authorized officer. The parties involved in the property transaction need to be present during the registration process.
Issuance of registration certificate:
- After the registration of the sale deed, the concerned authority issues a registration certificate to the buyer. The registration certificate is an important legal document that proves the ownership of the property and is required for any further transactions related to the property.
In India, the Registration Act of 1908[1] governs property registration. This act provides for the registration of various types of documents, including sale deeds, lease deeds, mortgage deeds, and power of attorney. The act aims to ensure the authenticity and legality of the documents and to maintain a public record of all registered documents related to properties.
Apart from the Registration Act, property registration in India is also governed by the following laws:
Transfer of Property Act, 1882:
- This act regulates the transfer of property in India and provides for various modes of transfer, including sale, lease, mortgage, and gift. It also lays down the rights and duties of the parties involved in property transactions.
Indian Stamp Act, 1899:
- This act provides for the payment of stamp duty on various types of documents related to property transactions. The stamp duty rates vary depending on the type and value of the transaction.
Land Registration Act:
- Some states in India have their own land registration acts, which provide for the registration of land and other immovable properties. These acts may have provisions that differ from the Registration Act, and it is important to be aware of the laws applicable in the specific state where the property is located.
Real Estate (Regulation and Development) Act, 2016 (RERA):
- This act was introduced to regulate the real estate sector in India and provide protection to home buyers. It mandates the registration of all real estate projects with the concerned authorities and requires developers to provide detailed information about the project, including the land title, approvals, and completion timeline.
Property registration in India is regulated by various laws, and it is important to be aware of the legal provisions applicable to property transactions to ensure a smooth and legally valid transfer of ownership.
Different ways to cancel Property Registration
Property registration is a crucial step in buying or selling a property and ensures that the transfer of ownership is legal and valid. It is important to understand the legal implications of property registration and seek legal advice before entering into any property transaction.
Property registration can be cancelled in certain circumstances, which include:
Mutual Agreement:
- The cancellation of property registration can happen through mutual agreement between the parties involved. If both the buyer and the seller agree to cancel the registration of the property, they can execute a mutual agreement and submit it to the concerned authorities to cancel the registration.
Non-payment of dues:
- If the property owner has taken a loan against their property and fails to pay the dues, the lender may initiate legal proceedings to cancel the property registration. In such cases, the lender can approach the court to seek an order to cancel the registration and recover their dues.
Surrender Deed:
- A surrender deed is a legal document that allows the property owner to surrender their ownership of the property to the government or any other authorized entity. This can happen if the property owner wishes to give up their ownership due to personal reasons, financial constraints, or other circumstances. Once the surrender deed is executed, the property registration is cancelled, and the ownership is transferred to the new entity.
Court Order:
- In some cases, the cancellation of property registration may happen due to disputes between the parties involved. If the dispute cannot be resolved through negotiations or mediation, the parties may approach a court of law. The court can then pass an order to cancel the property registration and transfer ownership to the rightful party.
Forfeiture:
- In some cases, the government or any other authorized entity may forfeit the property registration if the property owner fails to comply with the rules and regulations governing the property. This can happen if the property is being used for illegal activities or if the property owner fails to pay the required taxes or fees.
Conclusion
In conclusion, the cancellation of property registration can happen for various reasons and can be done through different legal processes. It is important to understand the legal implications of cancelling property registration and seek legal advice before taking any such step. When the cancellation of property registration happens due to disputes, the parties involved may approach a court of law. The court can then pass an order to cancel the property registration and transfer the ownership to the rightful party. In case of non-payment of dues, the lender may initiate legal proceedings to cancel the property registration to recover their dues.
Read Our Article: Benefits Of Property Registration
