The Basics Of Property Registration

Owing a home is every India’s dream – a dream that transcends all geographic, demographic and cultural barriers. For many, it is their life’s largest and most significant investment. In most cases involving end users, the registration of a property happens naturally as it is an integral part of the purchase process. Because of this, the incidence of such purchasers failing to register their homes is extremely small.

The incidence of failure to register properties is much higher among professional real estate investors, who often buy properties in bulk directly from the developer. Many such investors are unwilling to pay for the registration of such properties. The reasoning is that they will in any case be resold, and that the purchaser will undergo the registration process at that time.

No matter how prevalent this practice is, there is a high legal risk involved. Without registration of a purchased property, the legal rights over it continue to be vested fully with the developer. Needless to say, this is a game with extremely high stakes involved – and therefore a gamble at best.

The Indian real estate market is still at a basic stage of evolution, and the temptation to bypass the law on property transactions continues to be a factor. Thankfully, property laws as well as their enactment are now catching up with the realities of the present day.

WHAT THE LAW SAYS

Registering the documents relating to the transfer, sale, lease or any other form of disposal of a property is compulsory by law under section 17 of the Indian Registration Act, 1908. The registration of an agreement to buy or sell a flat in Maharashtra is compulsory under Section 4 of the Maharashtra Ownership Flats Act, 1963.

Once a property is registered, it means that the person in whose favour the property is registered is the lawful owner of the premises and is fully responsible for it in all respects.

If the required documents are not duly registered, then Section 49 of the Indian Registration Act, 1908 states that the documents will not have any bearing on the property, and that they do not confer any transaction rights over the property. In other words, the law does not recognize unregistered owner and does not give him any rights over the property.

PROCESS OF PROPERTY REGISTRATION

The registration of a property involves adequate stamping and paying the registration charges for a sales deed and having it legally recorded at the sub-registrar’s office.

If the property is purchased from a developer, registering the property amounts of an act of legal conveyance. If it is the second or third transaction for the property, it could involve a duly stamped and registered transfer deed. The process is now computerized in most states, and involves the issuing of a token number for registering the document on a specified date. The process can take anything from seven to fifteen days.

The documentation will vary depending on whether the property is being transferred from the developer or if it is a secondary sale. If the property is already under lien, then the mortgaging agency will have its own format.

There are various costs involved, and these vary from state to state. Currently in Mumbai, the costs can amount to 5% of the total registered value of the property, but this depends on exact location. According to states, it can vary from 3-8%, again depending on exact location and registrar jurisdiction. It is very advisable to anticipate and factor the cost of legal registration of the purchased property into one’s overall budget. The exact figure involved can be worked out with the developer or real estate agent and finances accordingly planned.

REGISTERING A MORTGAGED PROPERTY

If a property that is under mortgage is to be registered, the mortgaging bank will require an NOC from the housing society in a prescribed format. It would then initiate the loan disbursement, depending on the repayment eligibility of the purchaser. The document will be duly registered on bank’s confirmation of disbursement to the seller after obtaining all the originals from the sub-registrar’s office. The housing society will need to receive an intimation, without which the existing owner cannot create any third-party lien or exercise any right to further sell or grant a leave and license on the property.

Mrunal Duggar, Vice President – Residential Services, Jones Lang LaSalle India

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61 Comments

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    • Swapna Augustine 16. May, 2012 at 2:38 am #

      Hi

      We have purchased a property in Cochin. The Registration process is due next month. Would we be able to sell this to the buyer directly without registration that is directly transfering it to the buyer. The property was purchased thro a mortgage thro hdfc bank, for 65 lakhs, the entire payment except registration costs (10 lakhs) has been made to the builder through the bank. Our mortgage is still outstanding to the tune of rs.45 lakhs. pl clarify if we can register it to the buyer directly without transfering it in our name.thanks

      • Administration 16. May, 2012 at 4:19 am #

        Registering the documents relating to the transfer, sale, lease or any other form of disposal of a property is compulsory by law under section 17 of the Indian Registration Act, 1908. Once a property is registered, it means that the person in whose favour the property is registered is the lawful owner of the premises and is fully responsible for it in all respects. If the required documents are not duly registered, then Section 49 of the Indian Registration Act, 1908 states that the documents will not have any bearing on the property, and that they do not confer any transaction rights over the property. In other words, the law does not recognize unregistered owner and does not give him any rights over the property.

  1. JLLIndia_Realty 25. Apr, 2011 at 3:23 am #

    The Basics Of #Property Registration | #India Real Estate Compass http://bit.ly/gaqY8g

  2. Lakeesha Minhas 03. Mar, 2012 at 9:42 am #

    This blog really provides great and useful information. Please stay us up to date like this. Thank you for sharing.

  3. Prof Sanjay 06. Jun, 2012 at 10:37 am #

    Dear Mrunal
    My property was in a building which has been redeveoped and the apt nos etc have changed. Do i need to re-register the property with the authorities in Mumbai?
    Kindly advise. Thanks Sanjay

    • Administration 07. Jun, 2012 at 6:25 am #

      When the property is redeveloped, stamp duty and registration charges are paid by the developer. He pays these charges on the extra area being offered to the members. In case, members/ tenants have not paid any stamp duty and registration charges earlier, then it is borne by the members.

  4. Natasha 20. Jun, 2012 at 9:05 am #

    Can you tell me how many co owners can be there for a single property. Can I register a property on the name of my husband as well me.

  5. vijay 02. Oct, 2012 at 5:11 pm #

    I bought a land few years back and got it registered. Now I am planning to build a house in that land. After the house is complete, do I need to re-register again ?

    • Administration 03. Oct, 2012 at 4:10 am #

      Yes, definitely, since the status of the property and its usage has changed

  6. Tejbahadur Pal 16. Nov, 2012 at 4:57 pm #

    HI,
    I have a flat in Mira-road. Which is registered on my fathers name? My father is expired now & i want to transfer that property on my name. Do i have pay registration charges again?

    • Om Ahuja 19. Nov, 2012 at 4:08 am #

      If you are the inheritor of this property and this is clearly mentioned in the will, you will not have to re-register. If this is not the case, please consult an lawyer experienced in property matters as there may be other stakeholders in this property who have a claim

  7. deepa 21. Nov, 2012 at 11:15 am #

    1 or 2% is ok 5% is so high

    • Administration 23. Nov, 2012 at 4:35 am #

      The upside is that this can be seen as an investment into your asset, and can be figured into the resale price :)

  8. Raj 28. Dec, 2012 at 6:10 am #

    I have a joint property with my brother, registered 50-50.
    Now I want to buy 50% from brother to become sole owner of property.
    Do I need to go for property registration again(need to to pay full stamp duty again) or there is any way to save stamp duty, transfer the property or something like that?

    • Administration 03. Jan, 2013 at 4:53 am #

      Please talk to your lawyer about mutation of the property (recording the transfer of title of a property from a person to another in the revenue records of the municipal body). This is applicable in the case of sale, exchange, gift, mortgage or lease for over 30 years of any immovable property. The mutation procedure requires a transfer duty to be paid through the office of the registrar.

  9. Raaz 28. Dec, 2012 at 2:58 pm #

    My mom wants to buy property on my name but currently I’m not in India .do,my question is can she register the property under my name??????

    • Administration 03. Jan, 2013 at 4:45 am #

      New regulations require Indians living abroad to be personally present for the registration of a property sale deed. The Power of Attorney route has been significantly curtailed.

  10. Moin 31. Dec, 2012 at 5:46 pm #

    Hello, I am working outside India and have purchased a flat in India; and now would have to be registered in my name. Do i need to personally visit India for the registration process or can i get it done through Power of Attorney. Please guide.

    Thanks,

    • Administration 03. Jan, 2013 at 4:46 am #

      New regulations require Indians living abroad to be personally present for the registration of a property sale deed. The Power of Attorney route has been significantly curtailed.

  11. Raj 08. Jan, 2013 at 10:49 am #

    My grand-father who lives outsied bought a flat in late 90′s. He did not register the documents. Now he has gifted that flat to my grand-mother with a gift-deed (this was done in 1995 or so). Still no registration. Now my grand-mother wants to trasfer it to my dads name, so what should we do here about registration?
    So since it’s nt registered at all, it’s not even on my grand-father name, right? So can we do a gift-deed from grand-mother to my dad and then register document by paying stampduty? or we need to first register on grand-father’s name n then complete process? Please advice. Thanks

  12. suresh 10. Jan, 2013 at 6:19 pm #

    Hi,
    We have a house in Bellary(Karnataka, India) which has ground and first floor. This is on my brother’s name. From the begining we had an idea that ground is for my brother and 1st floor will be for me. As me and my father were away from the place, we had registered the house on my brother’s name. Now i need to get registered the 1st floor house on my name. Please suggest the process which makes clear registration on my name as well as no tax for my brother (sale’s tax or tax on profit of sale etc) as this is not really a sale.

  13. sonia 29. Mar, 2013 at 6:53 am #

    Hello,
    Thank you for all the information. It was extremely helpful. I have a query regarding some property we had purchased and would be grateful if you could help me on the same.
    We purchased commercial property in Parel in the early 90s and also paid stamp duty on the same. However our property still hasn’t bee registered. Kindly let me know if there is a penalty for late registration and what is the timeline if we want to register the property now.
    Thanks

    • Arun Chitnis 20. Aug, 2013 at 2:28 pm #

      Please contact us directly as this is a professional requirement

  14. Surendra 04. Apr, 2013 at 6:27 am #

    Hi,
    I am negotiating selling my flat. My prospective buyer is saying that my final settlement will be made by his n=banker only after executing final sale deed..Is that the right way?

    Thanks in advance.

    • ramesh 08. Nov, 2013 at 6:16 am #

      if the banker is going to pay then you should go in for a tripartite agreement…banks are expected to fulfill legal commitments…in case of doubt..seek 100 % payment before at / or before registration

  15. Krish 06. Apr, 2013 at 2:22 pm #

    I live in US and i have a property in India. Recently the builder scheduled registration of the property which i couldn’t attend because i couldn’t travel to India in a short notice. I have requested the builder to re-schedule the registration to a future date (within 6 months of the original registration date). should i expect any tax implication or potential increase in stamp duty fee due to this re-scheduling?

    Thank you for your help

    Krish

  16. Rashmi sharma 06. Apr, 2013 at 8:27 pm #

    My husband bought a flat in Delhi when he was single and on green card 10 yrs ago. Now we both are naturalized US citizens. Can he register the property in both our names as it was never registered

    • Arun Chitnis 20. Aug, 2013 at 2:26 pm #

      Yes, under certain conditions

  17. Kumar Ramkrishnan 03. Jun, 2013 at 5:58 am #

    Dear Sir,

    I have a query related to registration of flat in a re-developed Housing Society. Facts are as under:

    *My Society (Usha Cooperative Housing Society Limited, Thane – Maharashtra) is a registered entity since 1960.
    *My father held 100% shares of this flat. He was the Owner
    *As the building was dilapidated, the premises were demolished and re-developed (about 10 years ago) by engaging a Re-Developer as contractor
    *While re-development work was completed, the Re-Developer did not fulfill all clauses of the contract as providing power back-up for lifts; paving the compound; providing a 200 square feet office for the Society etc.
    *However, the Re-Developer issued a ‘hand over notice’, giving away keys to all flats to the Society
    *Meanwhile, my father nominated my wife as Owner of the flat before his death
    *As the Re-Developer did not fulfill the contract, we approached the Consumer Court. Alas, the proceedings dragged on for more than 3 years, and we ‘abandoned’ the case
    *The Re-Developer is harassing our Society members by charging ‘NOC charges’ for transferring flats to the names of the Owners, because we approached the Consumer Court

    Now, I am desirous of registering the flat in the name of my wife. My queries are:
    1. Do I require an NOC from the Re-Developer’?
    2. Can I avoid paying the Re-Developer ?

    Thanking you in anticipation of your kind advice.

    • Arun Chitnis 20. Aug, 2013 at 2:25 pm #

      Sir,

      Unable to understand the details of your exact needs via this post, but do feel free to contact me via email

    • ramesh 08. Nov, 2013 at 6:06 am #

      i think
      a) you should not abandon the case filed in the consumer court and ask your advocate to get the latest update
      b) NOC is chargeable only when an owner gives his property on rental / leave nd license. You may lodge a complaint to the dy. registrar of the concerned jurisdiction provided there exists a society in your housing complex.
      c) if you have purchased the flat from the builder then it is obligatory that the flat be registered at the earliest. You may approach the builder by sending a letter and if no reply comes then again sending a letter thru an advocate.The builder may be penalised for deficiency of service and exploiting the consumer against the legal provisions.

    • ramesh 08. Nov, 2013 at 6:08 am #

      one more question….has the builder received the completion certificate and occupation certificate…without occupation certificate there can be legal issues if one starts residing inside a flat!

  18. Sam 12. Jun, 2013 at 1:13 am #

    Hello,

    I have a question. I am a NRI. We are planning to buy a house in india jointly with my father and sister-in-law. Can a home in india (mumbai) registered jointly with sister-in-law, father, mother and my name. Or in other words can the agreement have all our names together . They are resident indians whereas i am a nri.
    Any special laws for that? there is no concern of taking any loan from bank.

    • ramesh 08. Nov, 2013 at 6:12 am #

      you can register the flat in question in the names as stipulated by you…you may give a specific power of attorney to your father for the purpose of the registration of the said property…

  19. Qurban Abbas 06. Jul, 2013 at 12:24 pm #

    I have purchase a apartment in New Mumbai and i paid almost 80% of my payment but still i haven’t done my registration. if i do the registration while taking my keys from developer. is it correct? currently i have a provision allotment letter and all transaction records. please advice.

  20. Ravi 25. Jul, 2013 at 5:42 am #

    whats difference between registration fee and stamp duty

    • Arun Chitnis 13. Aug, 2013 at 5:48 am #

      Stamp duty is calculated on the property’s existing guideline or market value. Registration fees are the processing fee for the registration of the property sale document which the Government charges.

  21. Shireen 26. Jul, 2013 at 1:01 am #

    Willing a non-registered Property in India

    Can someone “Will” this property when it has not been registered?

  22. Jagadish 05. Aug, 2013 at 12:23 pm #

    Sir / Madam,

    case A:
    1. three persons made a partnership to start a commercial complex, two partners invested money as capital and third invested asset as capital.
    then partner retired and got cash settlement, automatically third partner’s asset converted to firms asset.(this is registered at registration office)
    Case B. Now remaining two partners are running the coomercial complex,equally sharing profit / loss 50% each.

    A new partnership is made with new 3 partners (By firm registration but not registered at registrar office).Now the 2nd partner get retired(5% is the share of second partner when retires).
    my question is when 2nd partners retires what will be the value considered for registering the asset under registration act ie., the percentage of share holding by the retiring partner or total value of the asset (5% or 100% fo the asset value)
    Please give suggestion regarding this also please provide if there is any g.o. or any section helping us regarding the share of retiring partner(ie., 5%)

  23. Diva 23. Aug, 2013 at 3:07 pm #

    My husband is from Batala, Punjab region. He has bought several properties there with my money but has registered, if at all, the properties under his name solely and won’t share any information on them. How can I get the records of the properties. I am living outside India.

    • Om Ahuja 25. Aug, 2013 at 4:34 am #

      You are advised to have your local relatives engage the services of an advocate in Batala, who will be able to verify the registration details of the properties in question. You may need to authorize this via a POA

  24. Jagadeesh 28. Aug, 2013 at 2:14 am #

    Hi,

    I am planning to buy a plot in Bangalore and I need advice from you in terms of paying the land owner.

    The property is costing me around 50 L and since the land owner is in urgent need of money, we have come to a conclusion that Part of the 50 L (i.e.) 20L (in the form of a check) will be given to the owner and he would register the property in my name the day he is paid 20L and the rest 30L will be given as a post dated check. Both these check numbers will be entered in the sale deed and Sale deed may get voided if the second check for 30L bounce because of no availability of funds. My advocate has assured that there will not be any legal problems in this scenario. Could you please share your opinion on this.

    Thanks.

    • Admin 28. Aug, 2013 at 2:37 am #

      The process you have described is straightforward and reliable. It is used in most similar transactions

  25. peter steven 02. Nov, 2013 at 3:44 am #

    Hi,
    I Hv one property which is given as a gift from the chruch. I want to know whether this plot can be registrated ACCORDING TO INIDAN LAW.

  26. Brahm Devta 12. Nov, 2013 at 1:17 am #

    There is no rule abaut deed writen paper where land paper mention in both unit kattha decimal,first page katth with other page decimal or both,or vis versa

  27. shalini 16. Nov, 2013 at 5:28 pm #

    Hi ,
    I wish to purchase a flat in Mumbai suburban area .The flat
    owners have not registered this flat . they purchased it in 1996 . when i buy this flat will it be possible for me to register it ?

    • Admin 30. Nov, 2013 at 6:38 am #

      The current owners will first have to register the flat – else, they have no legal right to sell it

      • Vipul 12. Apr, 2014 at 5:34 pm #

        I purchased a flat in Kolkata jointly with my wife. Now is the to register the flat. I am currently outside India but my wife is there in India for few days. Can we get the flat registered in her name only?

        • Admin 13. Apr, 2014 at 9:08 am #

          Yes, she can

  28. Yatish 30. Nov, 2013 at 6:04 am #

    My dad have purchased a property in year 2000. He did not register the flat. He had paid the stamp duty. Today I am planning to sell the property.

    My question is do I need to register the property to sell now.

    If yes then what is the process to register the property now and how much will I have to pay approximately.

    Your thoughts will surely be help.

    • Admin 30. Nov, 2013 at 6:37 am #

      You will have to make an application at the local registrar’s office. There will be a penalty involved – you may have to pay a penalty of up to 10 times the registration fee, and the registration fee will be based on the property’s current valuation.

      • Yatish 30. Nov, 2013 at 2:45 pm #

        To register the flat now, do I need My first seller to sign.

  29. Unes 18. Dec, 2013 at 10:58 pm #

    I own a property in Mira Road. A few months ago, my sister took away my sales deed and all other papers related to my home without my knowledge. She then has worked up with the previous owner and has made a new sales deed on her own name and registered my home in her name. I have proof of payment (cheque – bank statement) which I made to the previous owner, but it is only 25% of the total. No other documents, but my other family members are supporting me. What should I do?

    • Admin 23. Dec, 2013 at 4:06 pm #

      We cannot think of a better time to get a good lawyer

  30. Santosh 20. Feb, 2014 at 1:17 pm #

    Hi,

    I am planning to buy a residential land in my hometown.

    I have a question which are very deviating from one person to other views and pls clarify

    1. If the cost of site aggreed is Say 15L and will the seller mention 15L in registration ?
    2. Heard from friends they that sellers nver mention actual amount in deed. If not how much hell mention ?
    3. Reason is I am completely depended on bank loan and please give me exact solution
    4. If seller is not ready to mention actual cost..is there anyway to get more money to be lent by Bank ?

    Thanks in Advance

    Santosh

  31. Sanyukta 21. Feb, 2014 at 2:55 pm #

    I plan to buy a flat under construction in Pune. As per the builder, i need to pay 10% of the total flat cost at the time of booking and additional 10% during the sale agreement.
    In addition to the above he wants me to pay stamp duty, registration charges, etc during the sale agreement.
    The building gets completed only in Mar 2015.
    Is this the correct procedure.
    Isn’t the stamp duty paid during the sale deed proedure, which is after the completion of the construction.

  32. Basudeb Banerjee 01. Mar, 2014 at 6:20 pm #

    I am a small time Developer. After entering into Registered agreement as per contract act & getting the Power of Attorney to sale the developped flats, I handed over the land owner’s share of flats after completion of the project & then sold Developers share of flats & gave possession of my flats to purchasers. Unfortunately Land owner died which made my Power of Attorney invalid but my investment got stuck since Registration office is demanding fresh Power of Attorney from the existing beneficiaries of the deceased land owner. The existing heirs of the deceased land owners demanding huge money to join as party to the proportionate land sale giving me the option to sale the structure to Buyer which is reducing my scope of sell price & profit of the project.

    I can not go for a CIVIL LITIGATION which is time consuming. I told 2 Buyer out of 15 of them to file complaint in Consumer FORUM giving me a Notice & to the heirs of the original land owners. My Buyers got favorable judgement from consumer court but I had to pay huge fees to two Advocates representing Buyer & Developer (me) separately. Here obviously you understand no Advocate want to charge reasonably to fight the cases when one fall into a trap of such nature & waste my time & money by prolonging the case for charging me fees by unnecessary applications to the FORUM since my expenses in Consumer Court is very minimum & reasonable otherwise. Hence I rather prefer some NGO ( other than Advocates) for all other cases with the direction of the Consumer Court where fees will be fixed by Forum in a reasonable manner for me & for the Buyers.

    I am under jurisdiction of Alipure District Court of Calcutta. Can you suggest me in this matter?

    Basudeb Banerjee, Director.
    C/O CIMCAP (Chemicals) Pvt. Ltd.

  33. Murli 06. Mar, 2014 at 4:32 pm #

    What are the formalites for registering a new property in Pune?
    Do you have to pay Stamp Duty @ 5% + Registration Fee + VAT @ 1% + Service Tax @ 3.09% before registering the property?

    • Admin 13. Apr, 2014 at 9:10 am #

      All the standard overhead charges for property purchase that you have mentioned are applicable in Pune

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