The primary purpose of property registration is to safeguard the rights of the owner and provide legal recognition to the owner of a property, especially in relation to the transfer of ownership from one person to another.
It has always been one of the significant processes of any transaction in properties because it creates a legal record of the transaction and preserves the interest of both parties. The main objective of property registration is to maintain records in connection with the rights of the property. The procedure for property registration has several phases. Registration must be done by submitting certain required documents at the Sub-Registrar’s office as provided by the Registration Act of 1908. This ensures that both the buyer and the seller have complied with legal requirements, preventing future conflicts.
This blog contains complete information of the important documents required for plot registration in India.
Is Property Registration Mandatory?
In India, it is mandatory for you to register properties under the Registration Act of 1908. When a property is transferred through a sale or purchase, it has to go through a process of being registered to make the transfer legally effective.
Property registration serves several purposes:
Legal Ownership:
It protects the buyer’s ownership rights as recognized by the law of the land.
Public Record:
The registered document is available in public domain in an effort to eliminate any future clash on the rightful ownership.
Tax Purposes:
Properties that are registered are liable to property taxes and other legal charges.
Prevent Fraud:
It is useful for combating fraudulent deals since there is always a record of property ownership. This means that if a property is not registered it would be unlawful for the ownership to be transferred in a legal way.
Documents Required for Plot Registration
1. Sale Deed
Among all legal papers, the Sale Deed represents the highest relevance for the property registration procedure. It is a written and legal instrument that delivers evidence that a change in the ownership of the property has occurred from the seller to the buyer. A Sale Deed includes essential details like:
- Description of the plot (location, size, etc.)
- Sale price agreed upon by both parties
- Payment terms
Date of transfer of possession
It should be filled on a non-judicial stamp paper and both the buyer and the seller parties should put their signatures with the attestation of witnesses. It is then registered at the Sub-Registrar’s office where the ownership of the plot is legally certified to the buyer.
2. Agreement to Sell
However, before a Sale Deed is executed, an Agreement to Sell is first prepared wherein the buyer and the seller sign an agreement for the sale of property. This agreement outlines the terms and conditions of the sale, such as:
- The agreed-upon sale price
- Payment schedule (advance and balance payments)
- Duration within which the sale will be completed
- Any other clauses related to the sale of the property
While it has no effect on the legal transfer of the property, this agreement is crucial since it sets the basis for the Sale Deed and confirms the terms that have been agreed upon between the parties.
3. Title Deed
Title Deed acts as a legal document that supports the assurance provided by the seller that he owns the property. It is a deed that proves that the land or the plot belongs to the seller without any controversy, fixtures, or legal claims. Failure to agree on the name puts the buyer at risk of purchasing a property whose ownership is dubious, a situation that will see the buyer face legal charges. Therefore, surely and effectively presenting a physical and clear title deed is crucial at the time of registration.
4. Encumbrance Certificate (EC)
An Encumbrance Certificate is an important document which shows that the property has no legal dues and mortgages. It offers record of all financial and legal responsibilities on the property. The EC is generally obtained from the Sub-Registrar’s office and it is necessary to prevent the property from being mortgaged, pledged or being in any legal suit. It goes as far back as the specified date, often ranging from 12-30 years, depending on the buyer’s requirements.
5. Property Tax Receipts
Original property tax receipts of current and the previous year must be produced at the time of registering the plot to show that no taxes are outstanding. The payment of property taxes indicates the cleanliness of the records of the property and also serves as proof of ownership of the seller. Neglecting to pay property taxes comes with a penalty and causes more problems in the registration process.
6. Mutation Documents
Mutation could be defined as the transfer of ownership detail in land revenues records. It is the duty of the buyer to confirm that the seller has done the mutation of the particular property in the buyer’s name before going for the registration. Mutation Documents proves that the property has been handed over to the seller in the record of land registry and it becomes easy for buyers to update their name in these records after registration.
7. No Objection Certificate (NOC).
At times, an NOC may be necessary to be obtained from different departments; the urban land ceiling authority, the environment authority, the local municipal bodies etc. According to this document, there are no prohibitions or limitations to the sale and registration of the plot. Based on the location and the type of the property sought to be registered, an NOC may be necessary.
8. Identity Proofs of Buyer and Seller
While registering a plot, both the buyer and the seller have to provide the following proofs of identity. Acceptable identity proofs include:
- PAN card
- Aadhaar card
- Passport
- Voter ID
- Driving license
These documents are required to verify the identities of both parties.
- Address Proof of Buyer and Seller
- In addition to identity proof, both parties must provide address proofs. This could be in the form of:
- Utility bills (electricity, water, etc.)
- Bank statements
- Passport
- Aadhaar card
- Address proof is needed to establish the current address of the buyer as well as that of the seller.
For civil cases, a Power of Attorney may be filed by the litigant (if applicable).
When the transaction is done through an agent or a third party, a power of attorney (POA) has to be produced. A POA is a legal power that empowers another person to handle legal as well as financial related tasks for the owner of property, including property registration.
Stamp duty and registration fee payment proof
The stamp duty and the registration fees have to be paid before the property is registered. Stamp duty is a tax levied on property transactions with the rate varying from one state to another. The Registration Fee is usually one percentage of the market value of the property in question. During registration, original challans/receipts for these charges have to be provided.
Conclusion
Plot registration in India requires the submission of a series of documents in order to ensure the legal process. The most important legal document that should be produced includes sale deed, title deed, encumbrance certificate, property tax receipts photographs identity proof etc. Also, there are other costs that are required to be paid including stamp duty and registration cost before the registration of the plot. Papers should be in order so as to avoid complications of the law and to facilitate property registration.