Overview of Property Registration
Registration of property is a legal requirement to be followed when a person purchases certain defined land or property in India. There are well-stablished laws to govern the purchase and registration of property in India. Registering a property involves selling a property to another and getting it recorded to the competent government authority for ownership purposes. Registration of property helps the owner to prove his clear title to the property, which is free from any pending litigations or claims to the property. It is also mandatory for the buyer to pay the registration fee and stamp duty, which is calculated as per the market value of the property. The necessary papers are arranged as per the stated order under the law and submitted before the Sub-registrar’s office for the registration of property. The registration of the property is a mandatory step to protect the interest of both the parties to the contract, .i.e, the Buyer and the seller.
Registration of property is done whenever a person sells or purchases the property. If the registration is not made when the property is sold to a person, it might cause problems for the present owner of the property. It will also create problems for the owner for seeking any protection or justice before a court of law.
Is Property Registration Mandatory?
As per the provisions stated in the Registration Act of 1908, the registration of the property is mandatory when the value of the property is more than Rs.100. This has been defined under Section 17 of the Registration Act. The property is sold to the person who has the clear title to the property once all the legal requirements, such as payment of stamp duty and registration fee, has been made duly. The amount of stamp duty and the registration fee varies from state to state as per the state laws made for such purposes.
Laws on registration of property
The below-mentioned laws are the laws related to the registration of property in India. These are:
New rules for property registration in India
In the year 2020, the government came up with a set of rules for the registration of property. The rules are applicable to the registration of properties. These are:
Benefits of Property Registration
There are several benefits of registration of property, even if it is one of the most time-consuming tasks. The benefits overcome the value of the time being spent on the registration process. The advantages are as follows:
Checklist for property registration
The process of registering a property is a time-consuming process involving a lot of complicated procedures. A necessary paper submitted wrongly might consume more time than required. Thus, it is important to keep in mind certain points and prepare necessary papers before submitting the necessary papers to the registrar. These are:
- Necessary Papers – It is the responsibility of the buyer to ensure that all the necessary papers required for the registration of the property are available with the buyer at the time of registration.
- Clearance of pending bills – The buyer should check that all the bills due before the sale has been made are cleared on the part of the seller.
- Stamp Duty – The amount of stamp duty must be calculated, keeping in mind the market value of the property. The amount varies from state to state as every state has its own Act with regard to stamp duty.
- Preparation of the necessary paper – It is necessary for the parties to enter into an agreement such as a sale deed, lease deed or gift deed stating all the essential terms and conditions for the sale.
- Encumbrance – It is a certificate stating that there is no mortgage or any legal dispute pending on the property being purchased by the buyer. It is the responsibility of the buyer to verify the encumbrance certificate before entering into a contract.
NGDRS: National Generic Necessary Paper Registration System for Property Registration
NGDRS stands for National Generic Necessary Paper Registration System for Property Registration. It has been initiated by the Department of Land Resources, the Ministry of Rural Development, and the Government of India. It has been developed into an application for the registration of properties in India.
The application has been designed specifically to be used by the sub-registrar, the citizens and other people from various state registration departments. The application has been developed in a way that it can be modified as per the requirements of every state, depending upon various factors.
The application offers a complete and user-friendly interface for the registration of property and submission of necessary papers. The application also allows citizens to initiate the buying and selling of properties/land online. It provides its users with several options, like finding out the prevailing market rates of certain properties and the nature of the land available for sale.
Necessary Papers required for Property Registration
Drafting and submission of necessary papers is an essential requirement during the registration of a property. Necessary Papers are required to be submitted to record the details of the property and transaction in the government system. There is a list of necessary papers which should be kept readily available to the person who is willing to get the property registered. The list contains necessary papers like:
Property Registration process
There are a few instructions which are required to be followed while registering a property/land in a state. These instructions are:
Online property registration
With the help of advanced technology available in India, the government has come up with a portal where one can register a property through online mode. As of now, this service is limited to only a few states. A person can make online payments through net banking or any debit or credit card, etc. One can calculate the amount required to be paid as registration fee and stamp duty and make payment. A receipt is generated for the payment made to the buyer of the property.
Guidelines for online property registration
The service of registration of property through online mediums is available in limited states only. Thus, it is important to check certain things before applying for registration of property through online mode. These are:
- Check the amount of stamp duty to be paid.
- Payment of registration fee and stamp duty online.
- Receipt of online payment.
Book a Free Consultation
Get response within 24 hours
Types of valuations for property registration
It is mandatory for a buyer to pay the registration fee and register a property at a certain value. There are different methods for the valuation of property registration. These methods are:
Factors affecting property registration charges
There are several factors which affect the registration fee of a property. These factors are:
Issues Faced in Online Property Registration
The registration of property by online mode is an effective means of registration, but it comes with several disadvantages which create problems for buyers and sellers. Sometimes, the online registration portal works slowly causing a huge waste of time. The website also faces several technical glitches. This is one of the common issues faced by users. Even if the process of registration of property has become online, one needs to visit the office of the sub-registrar to submit necessary papers and finish the process. Registration of property is mandatory in nature as defined under the Registration Act, 1908.
Frequently Asked Questions
The necessary papers essential for the registration of the property are as follows:
- Aadhar card and photograph of both the parties
- Copy of the deed
- No objection certificate
- Register card of the property
- Copy of the payment of municipal tax bills
- Completion certificate by the developer