If you buy property in India for more than Rs 100, you must register it. Property registration is governed by Section 17 of the Registration Act of 1908. Property registration is essential for the sale and acquisition of immovable property. If a property is not registered in the buyer’s name in government records, they will not be the official owner and will be unable to challenge it in court if a disagreement arises.
Searching for a particular property may be simple nowadays, but property registration might be a complicated procedure. We have developed a comprehensive reference to land property registration law, procedure, costs, documents, and much more to make property registration simple for you.
Is Property Registration Needed?
Property registration is required in India under Section 17 of the Registration Act. Registration is not required if the property is less than Rs 100. Once stamp duty and registration fees have been paid, the property is registered in the new owner’s name. Stamp duty and registration fees vary slightly from state to state.
Laws governing property registration
The following laws apply to property registration in India:
Registration Act, 1908: Section 17 of the Registration Act, 1908 suggests that the sale of all immovable property valued more than Rs 100 be registered.
Indian Stamp Act, 1889: Stamp duty must be paid on any property documents that will be registered.
Things to Check Before Property Registration
Property registration in India is a complex process that might have long-term effects. Thus, you must use caution when registering. Here are a few points to bear in mind when registering a property. –
Chain of documents – The buyer must double-check the documentation detailing when and how the property is transferred from one owner to another.
Due clearance – Before purchasing the property, ensure that the power and water bills, as well as any taxes, have been cleared and updated.
Calculation of stamp duty – Stamp duty is calculated based on the market value of the property, which varies by state.
Deed preparation – A deed must include the terms and conditions, as well as the buyer and seller’s information. It could be a sales deed, a gift deed, a lease deed, and so on.
Encumbrance – The encumbrance certificate guarantees that the property is free of legal problems and mortgages. The buyer must verify this before purchasing the property.
NGDRS (National Generic Document Registration System for Property Registration)
The NGDRS initiative was initiated by the Department of Land Resources, Ministry of Rural Development, Government of India. The National Generic Document Registration System (NGDRS) is a generic, flexible, and standardised application designed for property registration agencies across the country.
The NGDRS application is intended primarily for use by sub-registrar offices, residents, and other users from state registration departments. NGDRS allows states to construct state-specific NGDRS and adjust the software to meet state-specific criteria.
NGDRS provides a comprehensive user interface for property and document registrations. In addition, the NGDRS program allows citizens to acquire land and register properties online. They can determine the circle rate for land, assess property valuation based on current rates, and grasp the types of land available for sale.
Documents Needed to Register a Property
Document submission is one of the most significant processes in land/property registration. The goal of document submission is to record the execution of documents. The documents should be registered within four months following execution. If the limit has expired, you can submit an application to a sub-registrar explaining the reason for the delay. A sub-registrar may agree, but you will have to pay the penalty. Document registration can take up to 7 days; in major cities, it takes 2 to 3 days, while in rural areas, it might take up to 7 days. To avoid any delays, you must have the following documents ready:
Passport-size photographs of buyer and seller
Identity proof of both the parties- Aadhar card, Pan Card
Latest property registers card copy
Power of attorney
Property Registers card copy
A copy of the municipal tax bill
NOC (No Objection Certificate)
Verified Sale deed copy
Construction completion certificate
Payment receipt of Stamp duty and registration fee
Land Registration Process
To register a property in your state, follow the requirements below:
Estimate the property value using the area’s circle rate.
After determining the property value, you must purchase non-judicial stamp paper. The stamp paper can be ordered online or from an approved stamp retailer.
According to the nature of the transaction, a deed must be typed on stamp paper. This could be a selling deed, a gift deed, etc.
To have the deed registered, both the seller and the buyer should go to the sub-registrar office with two witnesses. Photographs, proof of identity, and other essential documentation should be carried by both the buyer and seller.
You must pay the registration fee before registering the property.
The supplied documents are checked, and a receipt will be sent once the deed has been registered. After two to seven days, return to the registrar’s office to obtain the sale deed.
Online Property Registration
With advancements in technology, it is now possible to register property online. However, this service is only provided in a few states. A website allows you to compute stamp duty, pay stamp duty and registration fees online, and receive a payment receipt. You should pay using Net Banking, debit card, credit card, or a payment bank.
Guidelines for Online Property Registration
As previously discussed, only a few Indian states are permitted to provide online property registration services. If your state provides such a service, you should bear the following guidelines in mind:
You must examine whether the state (where the property is located) offers an online property registration portal.
An internet portal only provides the following services:
-Check the stamp duty rates.
-Pay the stamp duty and registration fees.
-Receive payment receipts online
To finish the registration process, bring your payment receipt to the sub-registrar’s office.
If the property’s worth surpasses Rs 50 lakh, pay the 1% TDS online.
During the online registration process, give the following information: name, address, kind of property, ownership status, property description, and proof of property.
Property Registration Aspects That Are Not Online
It is crucial to remember that, while certain steps in the property registration process can be completed online, others require an in-person visit to the sub-registrar’s office. However, accessing your state’s government website can make the procedure go more smoothly.
One of the most essential aspects of the State government website is the ability to view the circle rate for your location. This information is critical since it is used to calculate the overall worth of the property.
The website also provides a stamp duty calculator, which may be used to compute the registration fee or stamp duty amount.
Once you’ve determined the stamp duty amount, you can utilise the website to pay the registration fee and stamp duty online and get your receipt.
If the transaction exceeds Rs 50 lakh, the buyer must pay 1% TDS on the property value.
A receipt will be generated after payment is received. This receipt must be collected because it will be required during the verification process.
NOTE: To complete the registration process, you must schedule an appointment and attend the sub-registrar’s office on the specified date and time. The final execution takes place in the presence of the registrar, two witnesses, and the parties to the transaction.
Valuations for Property Registration
When you register a property, a registration fee is imposed. Here, we shall explore the various valuations for property registration.
One of the most frequent ways to register a property is to pay registration fees based on the property’s market worth. A market value is the amount that a property buyer paid to purchase the property.
If the market value of the property exceeds the circular rate, you can simply register the property at its market value.
If the property’s market worth is less than the circular rate, the buyer can still register it at the market value. However, in that situation, the difference between the market value rate and the circle rate will be considered income and taxed accordingly.
Another valuation for property registration is a bank value, which can also be used to register a property. However, banks frequently advise borrowers to register their property at the entire property value or a greater amount.
You can also register a property for the value specified in the construction agreement with the property developer. This will assist you reduce the final stamp duty charges.
Factors influencing property registration charges
The property registration fee is determined by considering several elements such as:
Property type – The registration charge varies between commercial and residential properties. Commercial property is more expensive because it is designed for corporate use and requires additional amenities.
Age of the property – The registration fees for a new property are more than for an existing property. In the case of an older property, the value would deteriorate from the time it was built.
Transfer type – Registration fees are lower if the property is registered as a Gift Deed and the title is transferred to a family member. If the property is purchased from someone other than a family member, the government will levy a regular registration cost.
Property location – Registration fees are high if your property is near a bus terminal, railway station, or airport; registration fees are also expensive in established towns and metro cities.
Owner’s Gender – The government offers a discount if the property is registered in the woman’s name.
Amenities – The library, gym, swimming pool, clubhouse, and other amenities need a substantial registration fee.
Fees for Property Registration
The fee for property registration varies by state. Generally, the registration fee ranges between 1% and 3% of the property value, with a maximum of Rs 30,000. States also change their charges from time to time.
|
City |
Land registration charges |
|
Delhi |
1% of market value of property, plus pasting charges of Rs 100 |
|
1% of property value and Rs 30,000 for property worth more than Rs 30 lakh |
|
|
Bangalore |
1% of property value |
|
Chennai |
1% of market value |
Benefits of Property Registration
Once you’ve bought your dream home, you must register it. Here are the advantages of registering your property:
Land ownership conflicts can be settled swiftly.
If the property is registered, you can readily obtain land ownership information from the sub-registrar’s office.
Encroachment by trespassers can be stopped, as the property owner is provided an official plan of land after registration.
If the registrar makes a mistake during registration, the government will refund the buyer for any losses incurred.
If the property is registered, the seller will receive a tax deduction under Section 80C.
Property registration also facilitates property mutation. The mutation is the transfer of ownership from one person to another. This permits the government to collect taxes from the appropriate owners.
Issues with Online Property Registration.
Online property registration is beneficial, but it can also bring several hassles. In certain circumstances, the website works so slowly that it is difficult to use. To obtain the information, you will need to labour for a longer amount of time. Furthermore, technical difficulties are a regular problem encountered by persons using government websites for online property registration. We agree that India has implemented digital land registration. However, you will need to go to the SRO office to present the documents and complete the process. Property registration is a required step under the Registration Act of 1908. The fundamental goal of the Act is to ensure that valid land records are maintained. According to a new rule, an unregistered property has no legal standing in court. To avoid delays, you must submit the documentation for property registration within the time frame specified.
New Rules for Property Registration in India.
A new set of laws for property registration went into effect in 2020; the existing rules will be followed until new regulations are implemented. The updated rules are as follows:
Copies of all documents are available on the same day due to computerisation.
Unregistered property lacks legal status and is not admissible as evidence in court.
A non-registered government acquired property cannot be compensated under Income Tax 80C.
Recent Changes for Property Registration in India
Aadhaar-PAN Link: During registration, your Aadhaar and PAN details must be linked. It is a simple but vital step towards reducing fraudulent transactions and keeping records accurate and trustworthy. This linkage also gives each property record a reliable digital identification, making ownership much apparent.
Video recorded registration: The entire registration process is being video recorded. Everything, from document verification to signatures, is captured on video. This not only provides transparency, but it also acts as strong documentation in the event of any future challenges, eliminating misunderstanding or doubt about consent or procedure.
Payments have also been made more secure: Property registration fees and taxes must now be paid online. No more long lines or cash payments. Digital payments provide rapid transactions and a clear record of every rupee.
Digital Registration: To reduce delays, several states now enable online property registration. With this, the government is also moving towards e-governance.
Sub-Registrar Role Enhancement: Better technical functionality is being added to strengthen the sub-registrar’s office. For example, in some states, both the buyer and seller of real estate can utilise biometric verification and digital signature technologies to validate their identities and establish the credibility of their respective identities.
Delayed Registration Penalties: The penalties for late registration have increased. This encourages both parties to complete their registrations on time.
Unified Stamp Duty Rates: Some Indian states want to unify stamp duty rates to eliminate misunderstanding and inconsistent prices.
These reforms will increase transparency in property registration. Buyers and sellers will both benefit from a more secure and efficient process.
Aadhaar Face Check During Property Registration
Many states have begun implementing the Aadhaar face check (biometric verification) for property registration. This step strengthens the ID check and helps to prevent fraud. When a buyer or seller comes to sign the documents, the system requests a brief facial scan. The scan is matched to the photo on the Aadhaar card. It merely takes a few seconds and uses the same internet tools as the state offices.
In many parts of India, this upgrade is already in use or is about to be implemented. Some of the main states are:
Maharashtra – incorporated facial check along with Aadhaar verification.
Tamil Nadu – Using Face Match for Safer E-Registration.
Karnataka – Added it to reduce impersonation at the sub-registrar’s office.
Andhra Pradesh – Pushing facial verification for all major registration services.
Uttar Pradesh – Adding it in phases for land and property transactions.
Delhi – Face check is being used for selected online services.
Key points of the update:
Helps validate that the proper person is signing.
Reduces phoney IDs and forged documents.
Works with both online and offline registration flows.
Adds one more safety layer throughout the entire process.
This move is intended to make the registration system more secure, as property fraud cases have increased in many states.
Property Registration: New Registration Bill Update
The laws for registering property are going to undergo significant alteration. A new registration bill is in the works. Its primary purpose is to make the buying process safer for consumers and to prevent fraud. This measure will replace an outdated law from 1908.
The proposed measure differs in several significant ways:
More Checks: It will provide registrars the authority to conduct a thorough review of a property’s records before registering it. This was not necessary under previous law.
More Digital: The new approach will be entirely paperless. All documents and records will be stored digitally. This will make things clearer and easy for everyone.
New Rules for Documents: The measure will also increase the number of documents that must be registered. This includes agreements to sell and powers of attorney.
Essentially, the new legislation ensures that your property ownership is more secure. It will be more difficult to sell property without sufficient rights, which will benefit anyone looking to buy a home.
Water Bill becomes a mandatory document.
Water authorities at the state or city level are implementing a required water bill for property registration. Most notably, the Delhi Jal Board (DJB) is implementing it. As a result, the specific rules and procedures depend on the regulations of that body and may differ between cities and states in India.
The following are some of the important rules for submitting this paper.
The required water bill requirement is often based on two main rules: verification of legal connection and payment of outstanding dues.
Mandatory Document Submission: The basic rule is that the water bill must be given to the Sub-Registrar’s office along with the other required documents (sale deed, PAN card, property tax receipts, etc.). The paperwork should be the most recent, with the payment receipt and no dues certificate.
Clearance of All Dues: If the records reflect any outstanding water or sewerage dues on the property’s consumer account, the Sub-Registrar will refuse to register the property transfer unless the dues are properly cleared.
Amnesty/Regularization Schemes: For properties with very old or significant outstanding dues, the water board may implement Amnesty Schemes that allow owners to settle the principle amount or have late payment surcharges (LPSC) waived to speed up the clearance process.
A Brief Overview of Property Registration
Finally, Section 17 of the Registration Act of 1908 makes it essential to register for property. To avoid future legal action, all transactions involving the sale of an immovable property for more than Rs.100 must be registered. Property registration can be completed online or offline. Many governments have implemented online property registration websites to save time and ensure system transparency.
