Property Registration Process in India : A step-by-step breakdown

Property registration is the key step to owning a property in India. It is an important legal process to formalize the ownership rights over real estate. Until the property is registered with the timely payment of stamp duty and registration fees, the property cannot be legally yours.

While real estate registration is a must for Indian properties, the process of real estate registration is lengthy and time-consuming. There are several bureaucratic steps for safeguarding property rights. However, these steps can also become hurdles for you.

Here’s the step-by-step breakdown to assist individuals in navigating this important legal journey.

Basics of Property Registration

Property registration is the legal process of recording property ownership details in government records. The registration process is governed by the Indian Registration Act, of 1908. This registration process is mandatory for almost every case. By registering a property, owners establish legal proof of ownership, vital for various purposes such as property sale, mortgage, inheritance, and legal disputes.

Compulsory Laws Under Property Registration to Comply

In India, you cannot own a property without registering it. Here are two crucial acts to comply in case you’re considering property registration:

  1. Registration Act, 1908– The Registration Act ensures public registration of property documents to maintain legality and compliance of rights and obligations arising from or affecting a particular property. It confirms the documents required for real estate registration and the procedure.
  2. Indian Stamp Act, 1889– The Indian Stamp Act of 1889 governs the documents that need legal stamps. It confirms that the documents comply with the regulations and clauses. It also generates revenue for the government by imposing duties and promoting tax compliance.

2020 Amendments in Property Registration Rules

Since property registration is a process full of hurdles and complexities, the Indian government introduced a new set of rules for easiness. Here are the key changes:
  • Easier Document Processing: With digitization, you don’t need to make multiple rounds of the government office. You can obtain copies of all essential documents on the same day of the registration.
  • Case of Unregistered Properties: Properties acquired by the government without proper registration are ineligible for income tax compensation. Registering your property is crucial to safeguard your rights and interests.
  • Legal Importance: Unregistered properties hold no legal standing and cannot be used as evidence in court. Ensuring your property is registered with complete documentation is paramount.

Steps Involved in Property Registration

  1. Due Diligence and Property Verification: Title verification ensures the ownership is clear and there are no legal disputes or encumbrances. Property verification will also include verifying property condition, size, boundaries, and any existing structures. Due diligence of the property implies confirming zoning laws, building permits, and other legal compliances.
  2. Document Preparation: Any real estate registration is incomplete without documents. Some documents to keep in place would be a sale deed, property tax receipts, no objection certificates, and identity and address proof. It is necessary to obtain approvals from banks, societies, and authorities. You might also need to collect additional documents as per the state-specific requirements.
  3. Stamp Duty and Registration Charges: It is important to determine the stamp duty of the property as these rates vary state-wise. You will also need to calculate the government fees for registering the property.
  4. Sub-Registrar’s Office: After document preparation and payment of taxes, an appointment must be scheduled at the concerned Sub-Registrar’s Office. The appointment can usually be booked online or in person, depending on the state’s procedures.
  5. Document Verification and Registration: On the appointed date, the buyer and seller must appear at the Sub-Registrar’s Office with all required documents and witnesses. The office will verify the documents, collect the registration fee, and record the property transfer in the official records. The registered sale deed will be issued to the buyer.
  6. Post-registration Families: After successful registration, some post-registration formalities need to be completed. These may include obtaining property tax records, updating bank records, and applying for utilities like electricity and water connections in the buyer’s name.

Required Documents for Property Registration

List of Documents

The exact documents required for property registration can vary based on the property type, location, and local regulations. However, some common documents include:

  • Identification and address proof of buyer and seller (Aadhaar card, PAN card, passport, driving license, etc.)
  • Property-related documents like sale deeds, agreements, property tax receipts, title deeds, etc.
  • Legal documents such as power of attorney (if applicable), NOC from authorities, etc.
  • Financial documents like stamp duty payment receipt, registration fee payment receipt, etc.

Why are these documents needed?

Each document plays a crucial role in the property registration process:
  • Identification and address proof- To verify the identities and addresses of the parties involved.
  • Property-related documents- To establish ownership, property details, and financial history.
  • Legal documents- To ensure legal compliance and authorize transactions.
  • Financial documents- To confirm payment of necessary fees and taxes.

Online Registration of Property in India

We have stepped into the world of digitization and so have the government solutions.

If you’re looking for property registration services in India, there are some pointers you need to consider. Online property registration is available in some parts of India. However, if you think the complete process can happen online then you’re wrong.

You can find and calculate the total value of your property by venturing online. The stamp rate and registration charges are available online too. The online portal allows you to make the stamp and registration payment. You only need to make an appointment and visit the office of the sub-registrar for the conclusive registration.

How Long Does it Take for Conclusive Registration?

The final step of registration at the sub-registrar takes two weeks at most. You must visit the office in person to retrieve those final documents.

FAQs Related to Property Registration in India

  • Is property registration compulsory in India?
    Section 17 of the Registration Act of 1908 supervises the property registration process in India. Every buyer is legally mandated to register their property as per the same.
  • What are property registration charges in India?
    Almost every Indian state calculates the registration fees as 1% of the deal value.
  • How to check online for Property Ownership?
    Online facility of property registration is not available in every Indian state. For checking property ownership, you can visit the online portal of your state, if it has one. Fill in your details and every information of your property pops up on the screen.
  • Is Online Registration of Properties Available in India?
    You can visit the official website of the state’s registration and stamp department.
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