The broad definition of immovable property includes land & building, houses, apartment, farm-houses, agricultural land etc. Real estate sector has witnessed great transitions and now offers a plethora of lucrative investment avenues for investors. The most important thing to consider is steps to purchase immovable property and the legal procedure to register it.
It is advised to consult property lawyer in India before you plan to invest in any immovable property in India. Here’s our complete guide on purchase and registration of property in India so that you know what legal formalities are entailed in the entire process:
Steps for purchasing immovable property
The basic procedure of purchasing immovable property in India include the following steps:
1. Scrutinize the relevant details of property-to purchase which includes the area of the property, the freehold status, details of the past owner(s), etc. and make a comparative match with the details prescribed in the title deed.
2. In case the construction of commercial or residential property is about to take place, assess the given property designs, layouts and builder plans. Ensure that these plans are approved by the respective authorities. Help of an experienced property lawyer in Delhi can be taken to assess the legal documents.
3. Conduct a title search. Title search is essential before the purchase of property as it make sure that the title of the property is free from encumbrances and debts and is clear. It secures the buyer’s interest and also reduces the risks associated in dealing with property transactions.
4. Attain the certificate of encumbrance from the previous owner which will ensure that title is absolutely free from liabilities, mortgage & encumbrances.
5. Make sure that all the applicable taxes i.e.property tax and other utility bills are paid to the date for the last five years. The right way is to obtain the receipts of payment as obtained from the respective offices.
6. Hire the best property lawyer and get a rightfully drafted sale agreement and conveyance deed on the stamp paper of the prescribed amount. This agreement should contain all the relevant clauses and conditions pertaining to price, adoption procedure in case of default, grievance redressal procedure and other.
7. The final agreement will be then signed by both the parties to purchase and by minimum 2 witnesses.
After following all the purchase step, it is important to get the property registered in the name of the buyer.
Process of registration
As per the Indian Registration Act, 1908, the buyer gets the legitimate possession of the purchased property when it gets it registered with the Sub-Registrar of appropriate jurisdiction. Later, the sale deed is needed to be duly registered & stamped after making necessary payment of fees to the respective authority. The legal maximum time of registration of said property documents is before 4 months from the execution date.
Essential documents for Property Registration
Ownership documents like power of attorney, conveyance deed, land deed, title deed in original, sale agreement along with its 2 xerox copies.
ID proof of both buyer & seller along with 2 witnesses.
- Details and proof of payment.
- Tax paid receipts & Khata Certificate.
- Certificate of Encumbrances.
- Receipt of payment of stamp duty & registration fees.
Process of Property Registration
Stamp Duty & Registration Fees
The Stamp Duty is paid prior to or at the time of final execution of registration documents. It can be paid by way of e-stamping, Franking or by purchase of physical stamp paper. It is governed by different state laws.
Registration fee is over and above the stamp duty and is also governed by different state laws. Generally, it is approximately 1% of the market value or agreement value, whichever is more, subject to the highest of Rs. 30,000.
E-Registration procedure in Urban & Rural areas
The registration of immovable properties in both urban & rural areas comes under the territories of different State governments and is thereby supervised by Tehsil, Taluka or Mandal.
The valuation and stamp duty may differ depending on the vacancy & locality. If land is not occupied, it is done at current market price whereas if it is occupied, then it will take into consideration both the market price as well the rate of gross investment utilized by a building.
Stamp duty varies from state to state but in general, in urban regions it is near to 6% whereas in rural areas it is approximately 5%.
What if the registration is refused?
If the registration is refused by the respective Sub-registrar, then he must endorse ‘Registration Refused’ on the application and without taking any other fees and unwarranted delay, provide the executants/applicant the copy of reasons as recorded.
The executant can find a lawyer to appeal against the order of Sub-registrar to the Registrar unless the refusal is made on the reason of denial of execution within 30 days from the date of receiving the order. The registrar has the authority to reverse or change the order, as he may found fit and reasonable.
In case the ground of refusal is denial of execution, then also he can hire a property lawyer near him to appeal to the registrar only in writing and as per the prescribed procedure.
If the registrar refuses to order registration, then the applicant can approach the civil court of apt jurisdiction, within 30 days of receiving the order of refusal. The court then hears the grounds, reasons, evidences and pass the decree accordingly, which will then has to be accepted by the applicant.
MyAdvo connects you to the best property or property documentation lawyer in India who can help you with registration of your immovable property. Talk to the best lawyers now- Email us at firstname.lastname@example.org or call us at +919811782573.