Property registration is one of the foremost and important processes that both the parties; seller and buyer needs to come upon. Without finalizing the various important steps, you cannot be sure of the acquisition or selling of the given asset. Land, ready-to-move home or a property that is near completion, each and every property has to undergo the process. However, the registration process can be complex if proper attention is not given as India offers 2 different set of procedures for natives as well as for NRIs who want to mark their foray in Indian real estate market.
The key purpose for which the Act was formulated and made a part of the law was to make sure that the information about all deals concerning property assets is correct. This straightaway ensures proper records and their maintenance. Further, the Act is used for accurate tracking of all the transactions associated with the immovable property.
Here are 5 important things you should know:
- Know the Sub-Registrar in the Locality
The Sub-Registrar is the main point of contact in this entire procedure or you can consider this gazetted officer as the start point. He will ask for all the necessary documents for registration and this happens in the presence of both buyer and seller of the property. The registrar checks various important aspects about the documents like:
- Date of certificate or embossing
- Classification of nature of documents based on The Stamp Act and The Registration Act
- The Stamp Duty
- Support Documents, such as RTC, Form 60 and 61 PAN, Form No. 1, to list a few
- Real Market Value
The sub-registrar who verifies and initiates the registration process needs to know the real market value of the property. It’s not only him but you as a property seller or the potential buyer should also be aware of the real market value. The value is that estimated by the Market Value Committee or consideration. If both the parties do not agree upon the set value then you are free to make an appeal to the District Registrar. Apart from this, you also need to have an idea of the ‘KHASRA’ of the plot/house from the sub-registrar or the registrar.
- The Property Title
This is one aspect that you need to know if you are planning to make an investment in a property. The property title includes knowing the origination of the asset; whether it is being transferred from the developer or the seller. This is required to be known by you otherwise if the title of the property is not clear and marketable then banks may refuse to support you financially. A bank or a housing finance company undertakes the due diligence process before it can approve the project and the loan.
This very process also requires for the buyer to get a No-Encumbrance certificate from concerned registrar.
- The Sale Deed
The Sale Deed is another very important document that is formulated between the buyer and owner; developer may also come in, if applicable. You have to visit an authorized attorney to get the sale deed prepared and duly signed. The Schedule of the property has to be correctly mentioned in the Sale Deed and if any structure is situated over the landed property then that also has to be marked in the Sale Deed with the associated cost.
- The Procedure is City Dependent
It is very important for you to understand the fact that the property registration procedure varies from state to state. For instance, property registration in Mumbai and Ahmedabad is easier to a little extent than in Chennai. If you are planning to buy a house, land or putting up your house for sale in Chennai, then at both the sides the procedure is little elaborate. Unlike Mumbai and other Indian cities, you can obtain stamp paper from stamp vendors. This is otherwise an eased step in the procedure followed in other cities.
- The Alteration of the Property Title
This activity comes in action once the registration is complete. You have to apply to the local municipal authority in order to get the title of the property and get that transferred to your name. This is commonly referred to as mutation of the title of the property. The process today has gone completely automated and this has made the registration procedures, extremely easy. You can easily download the form online or can be obtained from the concerned authority’s office.
Few Handy Tips
Here are some of the handy tips that are add-on to the guide:
- If you are an NRI, then make sure that you have all the documents and identity proofs of the other country ready.
- Make sure that you are aware about the owner or the seller of the property and also that the asset is free of loans and liabilities or not. This goes for both, natives and NRIs.
- Before purchasing any property, you have to ensure proper research work and buy the asset through genuine and authentic seller, developer, brokers or agents.
- Never underestimate the effects of the feedback the local natives can offer you. The people residing in a particular area can very well tell you about the region and reputation of the seller.
Vineeta Tiwari is a keen writer on Global Economy and Realty market. She has written articles on Global realty market and ongoing trends and tips for investors. An ardent reader, she is happy to pen down research based write-ups for global audience. Currently, she is professionally associated with popular realty portal, 99acres.com.