When a person is in the process of buying a property in a preferred location in India, the next most important step after choosing his/her dream home is to register the property in his/her name. The registration of the property is compulsory as per Section 17 of the Indian Registration Act 1908[1], which guarantees ownership of it, whereby you become the authorised owner of the property in the eyes of the law. In the event that any person neglects to register the property in his name, the seller from whom he purchased the property will be deemed to be the legal owner, and any interests, rights, bills, etc. will be in the name of the seller for selling a property.
The Transfer of Property Act, 1882
Sale – Definition:
According to Section 54 of the Transfer of Property Act, 1882, the sale of a transfer refers to “the ownership in exchange for a price paid or promised or part-paid and part-promised. Basically, in a sale, there exists an absolute transfer of all rights in the property sold”.
Property Can Be Sold In Two Ways:
- When the value of the tangible immovable property is Rs 100 or more, or in the case of a reversion or any other intangible thing, the sale is possible only through a registered instrument.
- When the value of the immovable property is less than Rs 100, sales can be made through the handover of possession.
Delivery of Immovable Property:
- The delivery of immovable property is said to be completed when the seller hands over possession of the property to the buyer or the person who directs him for selling a property.
Contract of Sale of Immovable Property:
- A contract for the Selling a property or the sale of immovable property is a contract in which such property is sold on terms to be settled between the parties. It does not, by itself, create any interest in or charge a fee for such property.
- To solve property-related issues and understand the complexity of the matter, it is always best to consult a lawyer, who can guide you through the process in detail.
Which Registration Is Required To Sell The Property?
Selling a property is a complex process that requires compliance with legal requirements such as registration. Registration of the sale of real estate is mandatory, as it protects the interests of both the buyer and the seller. In India, the registration of real estate sales is subject to the Registration Act of 1908. In this article, we will discuss the provisions involved in the registration process and the importance of registration from the perspective of the law.
The Registration Act of 1908 established the legal framework for the registration for selling a property in India. According to this Act, every transfer of immovable property for selling a property, including gift deeds, rents, mortgages, and bills of sale, must be registered. The registration process is designed to ensure that the transaction is genuine and that the parties involved have clear title to the property. By registering the sale of a property, the buyer can be sure that they are purchasing a property that is free of any impediments.
To sign up for the Selling a property, you have to go through a few steps in the registration process. The first step is to obtain the deed of sale from the seller. A deed of sale is a legal document that contains the details of the sale, including the location, size, and value of the property, the buyer’s name and address, and the seller’s name and address. Once the deed of sale is obtained, the buyer must stamp it according to the stamp tax value of the property. The state government determines the amount of stamp duty for the property, and it varies from state to state.
After the deed of sale is stamped, the seller and buyer must appear before the sub-registrar for confirmation. The sub-registrar will verify the validity of the deed of sale and ensure that all necessary documents are available for selling a property. Buyer and Seller must provide ID proof, proof of address, and photographs to the Sub-registrar. The sub-registrar will then check if the property is free of any encumbrances such as mortgages, liens, or disputes. Once satisfied, the sub-registrar will register the deed of sale and provide the registration number.
The registration process is not complete until the buyer receives a certified copy of the sales contract for selling a property. This certified copy is proof of ownership and must be kept in a safe place. The certified copy contains the details of the property, the name of the owner, and the registration number. The buyer must also obtain a No Objection Certificate (NOC) from the seller. This certificate confirms that the seller has no objection to the sale and that the property is free of any encumbrances.
Recording selling a property or a real estate sale is important from a legal perspective. The law recognises and defends registered property, and owners have legal rights over it. Registered property cannot be sold without the consent of the buyer, and the buyer cannot be evicted from the property without due process. If a dispute arises, the registered deed of sale serves as proof of ownership and can be presented in court as proof of ownership.
If a property sale is not registered, it is considered an unregistered sale, and the buyer has no legal rights over the property. The seller can sell the property to another person without the consent of the buyer, and the buyer cannot claim ownership of the property in court. In an unregistered sale, the seller can also deny selling the property, and the buyer has no legal right to a refund.
What Are The Property Registration Procedures?
The registration process for selling a property, which takes place in the presence of the property owner and two witnesses with the following required documents:
- Proof of identity for both the seller and the buyer, for example, an Adar card, PAN card, or driver’s license.
- Two copies of the original sales contract. The document must be printed on one side.
- Evidence of duly paid registration fees.
- Proof of duly paid stamp tax.
- Plan certificate.
- If the property is secondary property, a tax certificate is required.
What Is The Statute Of Limitations For Property Registration?
As per Section 23 of the Indian Registration Act, 1908 the registration of property must be done within 4 months from the date of execution.
Conclusion
In conclusion, registration is mandatory for selling a property in India. The registration process is designed to ensure that the transaction is genuine and that both the buyer and seller have legal rights over the property. Registration of real estate sales is governed by the Registration Act of 1908, and the process involves several steps, including sealing, verification, registration, and the issuance of a certified copy. Registered property is recognised and protected by law, and the buyer has legal rights over the property, while selling unregistered property is illegal, and the buyer has no legal rights over the property.
