Why Is Registering Documents Important
In our daily lives, we generally tend to delay matters that don't require our immediate attention. But, one small slip, be it a typographical error or delay in registering documents, makes a perfect recipe for unending legal battles. For that matter, improper or incomplete documents often lead to court battles.
Thus, it is advisable to register your property for four reasons:
In a famous case of Narinder Singh Rao, his father died leaving a piece of paper stating that his wife could inherit all his fortune. The will, signed by a single witness, was not registered. The widow bequeathed the entire property to one of her nine children. The aggrieved children challenged the mother's move in court stating that the will was invalid and they, too, had a right in the property.Interestingly, the Supreme Court ruled that the aggrieved party had the right in the father's property as the will was invalid because it was not attested by two witnesses.
Thus, this case highlights two necessities of legal process. First, that an instrument should be properly attested and second, registration of documents. Attestation of a will
A will is valid if it is attested by two independent witnesses, who should not benefit from the will. This means you can't be both a witness and a beneficiary at the same time, even if your spouse is inheriting the immovable assets.This does not mean that the property would become invalid. It would still be valid but, the witness would not be able to inherit the property. It would go to the residuary legatee, a person who will get the remainder of the property in a will which has not been allocated to anyone. Although any relative who is not benefitting from the will can become a witness, it's advisable to get have independent witnesses. Compulsory registration
Section 17 of the Indian Registration Act states that the instruments claiming to transfer or assign any interest in immovable property have to be registered. Thus, sales or gift deeds, which relate to immovable property, must be mandatorily registered, failing which the transfer would be invalid and not recognised by law.In 2011, the apex court had also held that the transfer of property through the general power of attorney was invalid. A property could only be transferred through the conveyance deed.
Experts opine that it is always advisable to register your property for a greater transparency. They prove that the property has been transferred or sold. If you end up losing the property documents, you can get a duplicate copy form the registrar's office. Even a document stating that the power of attorney has been revoked must be registered so that is not misused at a later stage. Besides this, the cost of registering documents is not very high. Although it differs from state to state, on average, it costs between Rs 1,000 and Rs 2,000, excluding the stamp duty charges. Optional registration
Not all documents compulsorily need to be registered under the Indian Registration Act. However, it's advisable to register documents even for moveable properties. Section 18 of the Act states that registration of moveable property, such as a will, need not to registered but its registration would lend authenticity to it.
Till date, a will was not required to be registered even if it involved the transfer of property. A will is valid if it has been written on a piece of paper and signed by two witnesses but, its registration would make it more credible and reduce any scope for court battles between legal heirs.
For regular updates on real estate, click here