Table of Content:
- Types of Valuations For Property Registrations
- Factors That Affect Property Registration Rates In India
- Things To Do Before Registering Your Property
- Where To Register Property Online In India?
- Documents Required To Register Your Property Online In India
- How To Register Property Online In India?
Every property-related transaction, involving an immovable property with a value of over Rs. 100, in India, needs to be registered with the concerned regulatory authorities according to section 17 of the Registration Act 1908. These transactions could be related to the sale of the property, renting the property, or leasing the property. Registration of a property is a process to make all property-related transactions legal. It gives the involved stakeholders legal protection and the right to claim monetary and other compensation.
Property registration, however, isn’t a simple process. To understand the complete process one needs to also understand the types of property registration, so that’s what we shall start with today.
Types of Valuations For Property Registrations
When a property is registered, a registration fee is levied on the same. The following are the different valuations of a property that are used while charging registration fees:
1. One and the most common way to register property is by paying the registration fees on the market value of the property. The market value is the value that the buyer has paid to purchase the property.
2. If the market value of the property is higher than the circle rate of the property, you can simply register your property on the market value.
3. In case the market value of the property is lower than the circle rate, owners are still allowed to register the property at the market value. However, the difference between the market value and the circle rate is considered to be an income and is taxable.
4. The bank valuation of property can also be used to register a property. However, banks usually suggest borrowers register the property at the higher value or the full property value.
5. When banks auction off foreclosed properties, the value of the property mentioned in the sale certificate is used to register the property.
6. Property can also be registered at the value of property mentioned in the construction agreement with the developer. This helps in cutting down the final stamp duty costs.
Factors That Affect Property Registration Rates In India
The following factors can affect the registration charges of a property in India:
1. The type of property, i.e. commercial, residential, or mixed use, can affect the registration charge you’re required to pay on it.
2. Registration charges for newer properties are higher in India as compared to older properties.
3. Properties being transferred as gifts or among family members generally attract lower registration charges as compared to a property being sold.
4. Properties located in urban areas will normally have higher registration charges as compared to those in rural areas.
5. In some states, women buyers have to pay lower registration charges as compared to male buyers.
6. Some Indian states provide rebates in registration charges to buyers categorized as senior citizens.
7. Properties that come with amenities like clubhouses, gyms, swimming pools etc. have a higher registration charge to other properties like an independent house or a builder floor.
Things To Do Before Registering Your Property
Before registering the property, there are a number of things that the buyer must do.
1. Check Encumbrances
Before registering your property, it is important to make sure that it is free of all encumbrances. Encumbrances refer to outstanding mortgages, a lien against the property, outstanding property tax etc. You must make sure that the previous owner has paid off all their dues so that a dispute over ownership does not arise in the future.
2. Prepare the Deed
The buyer must also have a draft of the necessary deed prepared before registering their property. This could be a sale deed, a gift deed, or a lease deed. The deed should have detailed information of the property and all the stakeholders involved like the buyer and the seller and must detail all the terms and conditions of the transaction.
3. Clear Any Dues
Any dues like electricity bills, water bills, maintenance charges, or any other such charges must be cleared before registering a property.
4. Calculate the Stamp Duty
The Stamp Duty chargeable on the property must be calculated before the registration process. You must check the stamp duty rates of your state and city and calculate the stamp duty charge accordingly.
5. Check the Documentation
Before registering the property, you must also check the chain of ownership documents. The chain of ownership should be clear and all necessary documents required to prove the same should be available.
Where To Register Property Online In India?
You can register your property online in only a few Indian states. However, the complete process of property registration cannot be done remotely through the internet in any state in India. An individual still needs to complete the property registration formalities by booking an appointment and paying a visit to the sub-registrar’s office in person.
Documents Required To Register Your Property Online In India
Any documents used or the registration of property must not have been executed any more than four months ago. In case your documents have exceeded the four-month limit, you can write in an application to the sub-registrar to allow you an extension. This must be done within four months of the expiry of your initial registration period. The sub-registrar may or may not accept your application. In case they do, you could be fined up to ten times the original registration fees.
Registration fees in most states of India are generally 1% of the property value. Commonly, property registration can take up to 7 days in rural areas and 2-3 days in urban areas.
1. The following documents are required to be submitted when registering your property.
2. Proof of identity of the parties involved (Aadhar card, PAN card etc.)
3. Two photographs of passports of the parties involved
4. Deed of sale
5. Power of authority when a party represents another person.
6. If the party is a company the power of attorney/authority letter, as well as a copy of the decision of the board of the company, which authorizes him to make the registration, a combined property card certificate.
7. Proof of payment of stamp duty and registration fee
How To Register Property Online In India?
To register your property online, you will have to follow these simple steps:
Step 1: Register yourself on the government portal of your state (mentioned above).
Step 2: Enter the following information in your account:
1. Sale deed
2. Execution date
3. Party number
4. Property value
5. Property type
6. ID proof of the buyers and the witnesses
Step 3: Print out the draft after filling the form on a stamp paper.
You can now get the stamp paper signed and furnish it, along with the other documents mentioned above, at the sub-registrar’s office during your appointment. Every party involved in the property registration must be present during your appointment at the sub-registrar’s office.