Registration Act, 1908 vide Section 17 of the lays that, all transactions that involve the sale of immovable property value exceeding Rs 100, must be registered. This means that all the sale of immovable properties needs to be registered because no immovable property can be purchased for mere consideration of Rs 100. Additionally, all transactions of the gift of immovable property, as well as a lease for a period exceeding 12 months, are also mandatory for registration.
In some exceptional cases, where a party to the transaction isn't able to go to the sub-registrar's office, then the sub-registrar may ask any of its officers to accept the documents for registration, at the residence of such person.
Documents required and procedure
The property documents that need to be registered should be submitted to the Sub-Registrar's office within whose jurisdiction the property, which is the subject matter of transfer, is situated. The authorised signatories for the seller and the purchaser, have to be present along with two witnesses, for registration of the documents.
They must carry their proof of identity. The documents like Aadhaar Card, PAN Card, or any other proof of identification issued by a government authority are accepted for this purpose. They have to furnish the power of authority, in case they are representative of someone. If a company is one of the parties to the agreement, then the person representing the company to carry out the registration must carry documents, letter of authority or power of attorney, with the copy of the board of resolution of the company, which authorises him.
One must present the property card (other related documents) to the sub-registrar office, along with the relevant original documents and stamp duty payment proof. The sub-registrar will cross-check whether appropriate stamp duty has been paid for the property, as per the stamp duty ready reckoner before registering the documents. In case of any deficit in the stamp duty, the registrar will not register the documents.
Points to be noted before the registration
Preparations: A day before registration, gather and keep all the documents that are required for registration. In case you are not careful, you run the risk of losing the papers. Before you leave the for the Sub- registrars office, make sure you collected all your documents.
Payment: These days, stamp duty and registration charges are paid much before appearing in the sub-registrar's office to register your property. If required take a lawyerâ€™s assistance to deal with this part of the transaction. Only after payment of the stamp duty and registration charges an appointment is made at for property registration.
Additional Documents: With the relevant property documents, keep your PAN Card and Aadhaar card. You could also produce your or passport, voter ID card or driving license in place of Aadhaar card. These documents are the first things you will have to show when the Teller, the Reader and the Sub-Magistrate call your name, also take along two passport size photographs of both the parties.
If the property is under a lease from any development authority or government department, you will need transfer permission from the lessor for registration of the document. In the case of agricultural property/ farmland, a No Objection Certificate is also required from the appropriate authority to prove that the property is not subject to any acquisition proceedings.
Both the parties and the two witnesses along with their identification proofs need to be present at the time of registration. You may also be required to produce a past chain of title documents at the time of registration of the title deed.
These documents are then verified by a clerk who takes the thumb and finger impression of both parties on the documents. The sub-registrar verifies the original title documents, and ID cards of all parties take digital photographs of both the parties along with witnesses and issues a receipt to collect the original title deed.
TDS: In case the aggregate payments made to a single service provider during the year exceeds Rs 50 lakh, an individual or HUF availing contractual or professional services will have to deduct TDS at the rate of 5 Percent.
Witness: Witnesses are quite crucial for the process of registration to take place. They must be present with you during the entire process and must have a valid proof of ID along with them. The witnesses should be such people whom you may know.
Equal Treatment: There are no separate queues for women or senior citizens. All people are treated equally in the Sub-Registrarâ€™s Office.
Time frame: Typically, it takes 5 to 6 days for the documents to get registered. Only after production of the receipt issued to you at the time of registration, your documents will be handed back to you. The bank may send its representative to collect the document, in case of home loan. You can by yourself receive the papers and give them to the bank as well.