PROPERTY REGISTRATION PROCESS

What is Land/Property Registration and Why is it Necessary?

Land or Property Registration refers to the registration to document changes in ownership and transactions involving immovable property. Whenever you buy a piece of land or immovable property, you need to register the same with the government authority concerned, so that a legal ownership title is guaranteed to you. This greatly reduces risk of false claims and helps solve disputes if any, in addition to creating and maintaining an up-to-date revenue/public records.These records are a must to produce when you approach banks or finacial institutions for loans or to mortgage your property.

What I Need to Do to Register Land/Property?

Under the computerised Land and Property Registration system, registration is made easy. It ensures transparency in valuation and eliminates middlemen. Some states in India require an application to be submitted to the concerned authority, which may be the Sub-Registrar or the SDM of your area. The application form can either be downloaded online or obtained from the concerned authority's office. After due verification of details, the Deed is drawn up and the registration process is complete.

What are the general procedures for registration?

Registration of property involves a series of procedures to follow. Both purchaser and seller of the property should take note of the following 5 steps as detailed below.

Property Registration Process
Registration Procedure/Steps	Estimated Time to complete	Estimated Cost to complete
Step1: Check for encumbrances at the office of Sub-Registrar of Stamps & Registration department	3 days	INR 1000 to 2000
Step2: reparation of the final sale deed by the purchaser’s lawyer or authorized/licensed document writer	3 days	INR 10000 to 12000
Step3: Payment of Stamp Duty on the final Sale Deed through a challan at the designated bank.	1 day	5% of property value(varies from state to state)
Step4: Execute final sale deed and submit documents to the local office of the Sub-Registrar of Assurances	1 day	1% of market value of the property (varies from state to state)
Step5: Apply to the Revenue/Land & Survey Office for mutation of the tile of the property	30 days	INR 300

Registration Process Steps

Step 1

Check for (EC) encumbrance certificate at the office of Sub-Registrar of department of stamps and registrations

Estimated Time to complete :

1 to 3 days

Estimated Cost to complete :

Rs. 1000 to 2000

Name of Agency :

Local Sub-Registrar Office, this can be found at the respective state government websites

Details :

The purchaser should conduct a search of the property in the Registry and the Revenue Office, noting the location details of the property and the time period to be checked. While investigating the title it should be verified

1. that the legal ownership document is in the name of the owner, issued by the Revenue Record Department under the seal of the Tahsildar or revenue officer,

2. that on the date of purchase the title of the owner for the preceding 30 years (preferably) shows no mortgage or other encumbrance as still existing on the date of purchase,

3. the property is transferable and heritable,

4. the transferor is competent and/or authorized to transfer the property,

5. the transferee is qualified to be a transferee,

6. the object or consideration for the transfer is lawful,

7. the transfer has been made and completed in the manner prescribed by law,

8. the property being sold is free of restrictions for sale under the Urban Land (Ceiling & Regulation) Act, 1976 and a Clearance Certificate for the property has been issued by the U.L.C. (Urban Land Ceiling) Authorities.

9. papers with regard to payment of taxes, the electricity bills and water bills need to be checked.

If the seller is a Company incorporated under the provisions of the Companies Act, 1956 then it is prudent to take search in the office of the Registrar of Companies to verify whether there is any charge on the property registered under the provisions of Section 125 of the Companies Act, 1956.

Step 2

Preparation of the final sale deed by the purchaser’s lawyer/Notary/Government Licensed Document Writers

Estimated Time to complete :

1 to 2 days

Estimated Cost to complete :

INR 10,000 - INR 12,000

Name of Agency :

Government notified Notary/Lawyer/Licensed Document Writers

Details :

The lawyer/writer prepares the final sale deed and then engrosses the document on green paper leaving the date and place blank then this document is then submitted for stamping.

The fee for the lawyer is around 0.2% to 0.5% of the property value.

Step 3

Payment of Stamp Duty on the final Sale Deed.

Estimated Time to complete :

1 day

Estimated Cost to complete :

5% of property value ( The percentage varies from State to State, please verify this at the respective state governments website)

Name of Agency :

Nationalized Banks

Details :

Deposits the said fees in the designated bank. The designated bank issues a receipt/challan and marks the first page of the printed sale deed with the stamp duty received. This printed sale deed with stamp duty details will then be executed.

Step 4

Execute final sale deed and submit documents to the local office of the Sub-Registrar of Assurances

Estimated Time to complete :

1 day

Estimated Cost to complete :

1% of market value of the property (Maximum INR 30,000) + INR 20 per page of final sale deed for scanning charges (paid in cash)

Name of Agency :

Sub Registrar of Assurances

Details :

The execution of the sale deed in front of the 2 witnesses is commonly done at the same time and place where the buyer submits documents to the Sub-Registrar.

The documents are submitted to the office of the Sub Registrar of Assurances within whose jurisdiction the property is located. The authorized signatories of the seller and purchaser are required to be present along with two witnesses. Once the document is registered, a distinct document number is assigned to that document. The record of registration is kept in the office of sub registrar of assurance.

The documents are submitted to the Reader of the Sub-Registrar of Assurances for scrutiny. After scrutiny, the Reader indicates the registration fee required, which is 1% of the transaction value or Rs. 30,000/- whichever is less on the document itself. The due registration fee is to be deposited with the cashier against a receipt. After depositing the fees, the documents are presented before the Sub-Registrar in accordance with Section 32 of the Registration Act, 1908. Normally, the Seller hands over the peaceful vacant and physical possession of the property to the buyer simultaneous to the deed being presented for registration. Upon payment of the required registration fees and computer service charges in cash, as per the receipt, the document is returned within 30 minutes of getting the receipt.

The documentation shall include :

1. Document required to be registered (in duplicate)

2. Two passport-size photographs of the authorized signatories of both parties and signature of the witnesses

3. Photo identification of each party and witnesses i.e. voters' identity card, passport, identity card issued by Govt. of India, Semi Govt. and Autonomous bodies or identification by a Gazette Officer.

4. Certified true copies of certificate of incorporation of both seller and purchaser.

5. Certified true copies of certificate of incorporation of both seller and purchaser.

6. Copy of the Municipal /Property Tax bill to indicate the year in which the building was constructed

   • If any deficit stamp duty needs to be paid, the executor is informed and is asked to do the same.
   • The citizen certifies the final document before the Sub-Registrar and two witnesses.
   • The document is copied into the register books.
   • Copies are posted to 2 indexes (by name and property), and accounts and reports.
   • The document is returned to the citizen

Step 5

Apply to the Revenue/Land & Survey Office for mutation of the tile of the property

Estimated Time to complete :

30 days

Estimated Cost to complete :

INR 300

Name of Agency :

Revenue Department / Land & Survey Office of Respective State Government

Details :

After receipt of the registered title deed, the purchaser applies to the Revenue Authority seeking mutation of the title of the property in its favour. The authorized signatory has to submit the duly signed application along with the affidavit, indemnity bond, and a certified/notarized copy of the registered title deed.

After the assessment of the request for mutation, the Land & Survey Office decides the value for levying tax on property and then issues a letter of mutation in favour of the purchaser. Cost includes: application fee is INR 100; indemnity bond on INR 100 stamp paper, obtain an affidavit at INR 50 and notarize the sale deed for INR 50.