Property Registration Process and Things to take care of while Transfer of Property

Table of Contents

Property Registration: Things to take care of

Process of Property Transfer

What is property registration?

Transfer of any immovable property can be done ONLY BY REGISTERED DEED as per Section 17 of The Registration Act 1908,
Hence ANY AGREEMENT TO SALE, GIFT DEED etc must be registered as Registered Deed.
Property registration process must be done at the office of the SUB-REGISTRAR having jurisdiction over the area in which you have bought the property.
When you register the property you purchased, you Need to pay stamp duty and registration charges for the sales deed.
Mutation rules out the possibility of multiple transfers of the same property as the record before Registrar is a public record.

What is Mutation?

Land and Property mutation helps the local authority to fix property tax liability and charge it accordingly.
In some states this process is also known as Dakhil-Khariz/ Khasra – Khatauni etc.(entry-omission).

Is transfer by General Power of Attorney valid?

Earlier it was but after 2011 SC judgment, no ownership get transferred by GPA.
A General Power means all-inclusive powers and you shall be answerable for any acts of the Attorney under these powers with respect to all your property matters such as selling, buying, renting, collecting rent, payment of taxes, repair, conducting cases, etc. by creating a Deed for the same.
For transferring property through GPA the stamp duty is not required to be paid to the government. So in order to save some amount of money many people used to elect this way to transfer the property.
Property sales through the common practice of general power of attorney (GPA) will not give ownership title to the buyer held by Hon’ble SC in a landmark judgement of Suraj Lamp & Industries vs State Of Haryana 2011.
However, recently Delhi government has lifted the ban on registration of property transactions involving general power of attorney (GPA) to provide relief to lakhs of residents living in group housing societies and unauthorized colonies.
Things to be taken care of while buying property.
“Possession is nine points in law” always make sure that the possession of the property is with the person from whom you are buying the property. Always insist to get immediate possession of the land bought.
If such property is on lease or rented then do an inquiry by yourself from the tenant or neighborhood about the ownership.
Do proper due diligence from the concerned registrar’s office. Check the back chain of the property diligently.
Section 56 of Transfer of Property act provides that the buyer’s right is subject to the courts judgment if the transfer is made during the pendency of the suit. So make sure that there is no suit pending in the court disputing the property you are buying.
Read all the documents carefully and make sure that the mentioned details like plot number, Street number, adjacent places are absolutely correct.
Calculate the stamp duty carefully. An incorrectly stamped document will not save your interest in the property.
Stamp duty varies from state to state between 3-10 percent of Actual value of Property or Circle Rate of Property aka Collector Rate which ever is higher. Like in Delhi it is 5.5 %.
Registration Charge is 1% of Property Value.
For females, generally there is lesser stamp duty to empower females in society.
Buying Stamp Paper from authorised vendor
After Calculation of Stamp duty, you pay to buy the stamp paper from authorised vendor and get your sale deed or gift deed printed over it.
Alternatively – You can Print the Sale deed on a plain paper, take it to the bank, Pay Stamp Duty to the bank in the name of the Government.
In return, Bank will put a stamp on your sale deed printed on a plain paper. This method is known as Franking.
Third and the best way is to buy E- Stamp online from Stock Holding Corporation of India.
After the sale deed has been printed on Stamp paper,
Buyer and Seller will sign on each paper of the deed and two witnesses will sign on the last page
Next step is to go to Sub- Registrar Office, take his appointment
Buyer and seller must be present at his office along with two witnesses.
Along with that finger prints are also taken in
Sub- Registrar will verify your documents.
Additionally your photos are also clicked on the spot.
You will get a token from there.
Original Sale Deed can be collected after approx. 15 days
Thereafter Mutation takes place.