INTRODUCTION
When a property is transferred from one person to another, the transferor transfers all his rights to the property under Section 8 of the Transfer of Property Act 1882. Under Section 54 of the TP Act, the sale of a tangible immovable property can only be made by a registered instrument. The registration of property is important as it provides legal recognition to the owner and the property. The owner will be entitled to exercise all legal rights and liabilities arising out of the property. The owner of the property will have the remedy to protect his property from encroachment or property theft.
LAWS RELATED TO PROPERTY REGISTRATION IN INDIA
The primary legislation related to the registration of property in India is the Indian Registration Act 1908. This law lays down the mechanism for the registration of various documents to prevent fraud, assure title and conserve evidence relating to the documents. Under the Indian Registration Act 1908, Section 17 deals with situations wherein the registration of documents is mandatory. Section 17(1)(b) states that non-testamentary instruments which operate to create, declare, assign or limit in the present or future any right, interest or title, whether vested or contingent of a value of more than one hundred rupees, to or in immovable property. What this basically means is that all transactions that involve the sale of an immovable property of more than hundred rupees should be registered. The transactions of sale of immovable property below one hundred rupees need not be registered. However, in the modern era, there is hardly any immovable property whose value would be less than a hundred rupees, so indirectly it is mandatory to register the sale all immovable property. The property must be registered in the name of the new owner by paying the registration charges and stamp duty. Section 17 also states that it is mandatory to register the gift of immovable property as well. In this case, even though the donor does not get any consideration in exchange for the gift, it is mandatory to register the gift deed. Leases of immovable property of more than one year have to be mandatorily registered as well under Section 17.
Section 18 of the Registration Act 1908 refers to the documents for which the registration of property is optional. These include the transaction of sale of property of less than one hundred rupees. It also includes the leases of immovable property for a term of less than one year, transaction of sale of movable property, wills.
As per Section 23 of the Registration Act 1908, the documents shall be presented for registration within four months of the execution. Section 25 states that that if the registration of property does not take place before the expiration of the period, the registrar may allow the registration if the delay does not exceed a period of four months and the applicant pays a fine which does not exceed ten times the amount of the registration fee. The registration fee is usually 1% of the total value of the property. However, it may vary from place to place. For instance, the registration fee in Delhi is 1% of the total market value of sale plus Rs100 as pasting charges. In Mumba, it is 1% of the total agreement value of the property or Rs30000, whichever is lesser. In Bangalore, it is 1% of the property value while in Chennai and Kolkata it is 1% of the market value and 1% of the total cost of the property respectively.
PROCEDURE FOR REGISTRATION OF PROPERTY
First, the documents need to be submitted to the office of the Sub Registrar under whose jurisdiction the property that is to be registered is situated. The authorized signatories of the seller and the purchaser have to be present alongwith two witnesses for the registration process. The presence of witnesses is vital in the registration process. The witnesses shall be required to provide their identity proof to the sub registrar before the registration. The biometrics of the witnesses may also be scanned during the registration process. The signatories need to carry their identity proof. The documents required for registration include the passport size photographs of buyer and seller, identity proof documents including Aadhaar Card, PAN Card etc., Property registers, power of attorney if representing someone else, Verified sale deed copy, No Objection Certificate (NOC), Payment receipt of registration fee or stamp duty etc.
The property card, documents and the evidence of payment of stamp duty need to presented before the sub registrar. Stamp duty is the tax that is paid to the government for obtaining legal ownership over a particular asset. The sub registrar is duty bound to verify whether adequate stamp duty for the property prior to registering the documents. If the stamp duty is inadequate, the registrar may refuse to register the documents.
WHETHER THE REGISTRATION PROCESS CAN TAKE PLACE ONLINE?
In the majority of the Indian states, most stages of the registration process can take place online itself. However, the final stage of the registration process is offline in all the states. The final stage is when the buyer and the seller alongwith the two witnesses have to appear before the sub registrar for the registration of the documents. In the online mode, the buyer can pay the stamp duty, provide all necessary details and place an appointment at the sub registrar’s office.
AMENDMENTS IN THE REGISTRATION ACT 1908
Tamil Nadu has brought significant amendments to the Registration 1908. The 2022 Amendment to the Registration Act has inserted Section 22B. This section empowers the registering officer to not register any document which is either forged or a document relating to a transaction which is prohibited by Central or State legislation. Under the newly added Section 77A, the Inspector General of Registration or Registrar can cancel the registration of a document if it is made in contravention of Section 22A or Section 22B.
CONCLUSION
The procedure for the registration of property is a complex one. It is mandatory to register the sale of immovable property above one hundred rupees. A plethora of documents is required for the registration process which puts heavy burden on the parties, especially the buyer. While some of the stages have been made online, the buyer and the seller would still have to be present before the sub registrar for the final stage.
Contributed By : Kritavirya Choudhary (Intern)
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