Property Registration explained

Property Registration

In Real Estate property purchasing the most crucial part is the property registration process. Property registration involves lot of paperwork and legalities which need to be done with every possible care. This process can be daunting at times for homebuyers but can be done easily by experienced personnel. You should always consider shortlisting a broker for hassle-free property registration process.

Property Registration Process- 

Registration of property for purchase, sale, transfer, or lease is mandatory by the government of India under the Indian Registration Act. Without duly registered documents, the law does not safeguard the owner for claiming their rights on the said property. Hence, you should always make sure you get help from a real estate agent or lawyer and get the documents duly registered.

In the state Maharashtra property registration is compulsory according to MOFA (Maharashtra Ownership Flats Act) which was in existence before RERA. It states that person who has property registration under his/her name is the lawful owner of the property.

Steps involved in property registration-

1. Check if property title is clear at the office of Sub-Registrar of Assurances:

• You need to do research to find out if the property title or ownership status of the property you are willing to purchase and look up for mortgages or lien on the property.
• You need to make sure that legal ownership is with the person who is selling you the property. The legal ownership document can be issued by the Revenue Records Department.
• Look into the records up to 30 years for the property title search so that you can assure that it has no ongoing loans or encumbrances due on the date of purchase.
• Check if the property is legally transferable or heritable by law and the seller has the authority to execute the sale.
• Make sure that all the taxes and utility payments as on date are paid.
• This might take a week’s time and around Rs 10,000 – 15,000.

1. Documentation of the Transfer Agreement by a Purchaser’s lawyer- 

• Buyer needs to hire a lawyer to formulate the documents of sale of property.
• The legal sale deed or agreement for sale is made on a green laser paper which is submitted and stamped by the sub registrar on approval.
• The lawyer fees in not fixed but can go up to one percent of the total property value.

III. Payment of stamp duty: 

• According to government stamp duty is mandatory to register any sale of property.
• The buyer can pay the stamp duty at any authorized bank or online.
• The stamp duty charges were 6 percent in Maharashtra which has been slashed to 5 percent in April 2020.
• The stamp duty is charged at 5 percent of the agreement value or the ready reckoner value of the property whichever is higher.
• The bank issues a receipt of stamp duty received which needs to be attached at the first page of the agreement for sale or sale deed.

1. Execution of the sale in presence of Sub Registrar:

• Registration needs to be done in the presence of the buyer, seller, and two witnesses at registration office under whose jurisdiction the property lies.
• Document of sale is registered and the document is assigned a unique number, after the signatures of the buyer, seller and witnesses.
• Reader of the Sub Registrar scrutinizes the document and collects the registration fee applicable.
• Registration charges of Rs 30,000 or 1 percent of the property value is charged whichever is less.

The documentation that need to be submitted: 

• Copy of Sale deed or Agreement for sale.
• Photo identity proof like Aadhar card, Pan card, passport, voter Id etc. of buyer, seller and witnesses. 
• 2 passport size photographs of buyer, seller, witnesses.
• Thumb impressions, photograph and signatures of buyer seller and witnesses on the agreement is mandatory.
• Pan card of buyer and seller to be attached with the sale deed.
• In case of company need to give attested copies of Incorporation of both buyer and seller.
• Copy of municipal bill showing when the property was constructed.

 Apply for the mutation of the Title Deed:

• Mutation means transfer of name from seller to buyer’s name on the government records.
• These records are recorded by the Land Revenue Department.
• The mutation of records is applied to the city survey and land records department.
• Approximate charges of the entire mutation process is around Rs 500.
• Once the letter of mutation is received he is the legal and rightful owner of the said premises.
• The entire registration process is a very crucial step in any real estate transaction and should be done with utmost care. It is not very easy for home buyer to do it on their own.

Hence it is always recommended to take help from a real estate agent who has the experience and can guide you to get the right legal paperwork done and safeguard you from any fraudulent practices.