Term Of The Day: Property Registration

Property registration is the process of registering documents related to property according to section 17 of the Registration Act, 1908.

PropTiger Explains Property Registration

When you register the property you purchased, you should pay stamp duty and registration charges for the sales deed. Property registration process must be done at the office of the sub-registrar having jurisdiction over the area in which you have bought property. In most Indian states, property registration involves a computerized process. Middlemen are not required.

When you purchase a flat directly from the builder, registration of property gives you the right to legally own, use and dispose of the property. When you purchase a flat which is being transferred from one hand to another for the second or third time, you will have to pay stamp duty and registration charges over it.

To register a sale deed, conveyance deed or gift deed in Delhi, for instance, men will have to pay a stamp duty of 6%, while women have to pay a stamp duty of 4%. You need not pay stamp duty to register your will, but you will have to pay a registration fee of Rs 600. You will also have to pay a registration fee which is 1% of the total value of the sale deed, and Rs 100 as pasting charges. Both the vendor and vendee and two witnesses should be present along with proofs of identity when documents are being verified. After documents are verified, the official concerned draws up the deed, and completes the registration process.

It is important to register your property because registration guarantees legal ownership title to you. When you have legal ownership title over a property, the likelihood of fraud of misappropriation is faint. This is a matter of importance in India where property titles are often vaguely defined. In the courtroom, this would serve as proof, if a conflict emerges.  If you do not register your property in Delhi four months after the transaction, you will not have the right to sell your property or enter any transaction.

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