Registration of Property Document involves the recording of a duly executed document in the Registrar Office for the purpose of preserving the copies of the original documents executed between the parties relating to the transfer of a property. The documents such as Sale Deed, Gift Deed, Relinquishment Deed etc are required to be compulsorily registered under Section 17 of the Indian Registration Act, 1908. This is done so as to ensure the conservation of evidence, assurance of title, publicity of documents & prevention of property related disputes and frauds. Every document, which is compulsorily registerable, should be presented for registration before the concerned sub registrar having jurisdiction over the area in which the property is situated by the concerned person himself/herself, or the representative or the agent of such a person duly authorized vide a Power of Attorney along with 2 witness and appropriate registration fee. The payment of proper Stamp duty on instruments confers legality to them. Such instruments get evidentiary value and are admissible in the Court of Law as evidence.
Property Registration in Delhi
Property Registration ensures the transfer of legal ownership rights of a property to the person in whose name the property is registered. All kinds of property related documents are registered in Delhi in the concerned Sub Registrar office which holds jurisdiction over the area in which the property is situated.
Property Registration Procedure
The steps involved in the Registration of the transfer of a Property in Delhi are as follows :
Title Search at the Sub Registrar office
The buyer / vendor should appoint a lawyer or an advocate to carry out the title search and due diligence by inspecting the records related to the property that the buyer intends to buy in the concerned Sub Registrar office. The purpose is to see whether the present owner of the property has the authority to sell the property and has cleared all dues relating to it, such as property taxes, electricity bills, any charge, mortgage etc. The process takes around 7 days and costs between Rs.7,000 – Rs.15,000/-. The following things should be checked at this stage:
- The title of the owner i.e. whether the legal document is in the owner’s name, issued by the Revenue Record Department.
- No mortgage or other encumbrances on the property are pending against the present owner.
- The property is transferable and heritable.
Preparation of Sale Agreement
It is always recommended to get a legally enforceable Sale Agreement prepared on a stamp paper, to avoid future disputes and delays. The agreement must contain details about the advance payment made to the Seller by the buyer and the agreed time period within which. the balance payment will be made by the buyer and the Final Sale Deed will be registered .
Purchase of Stamp Paper and Preparation of Sale Deed
The next step is drafting of the Sale Deed. As per Section 17 of the Indian Registration Act, 1908, the Registration of a Sale Deed is compulsorily required in order to effect a valid transfer of the property from one party to another. For the registration of a Sale Deed, Stamp Duty is payable @4% of the property value, if the buyer is a female and @6% if the buyer is a male. This stamp duty has to be deposited with the authorized banks for the purchase of E-Stamp Paper. Meanwhile, the Sale Deed is prepared by an advocate. The final sale deed is printed out on legal papers and the E-Stamp Paper/Certificate is attached to it. This process generally takes around 3-4 days and costs around Rs.2,000 – Rs. 4,000/-.
Registration of Sale Deed and Presentation before the Sub Registrar
Once the Final Sale Deed along with the E-Stamp Paper is ready, it has to be presented for registration in the Sub Registrar’s office under whose jurisdiction, the property is situated. Registration fee @ 1% of the property value has to be paid through a Demand Draft at the time of registration of the document. In some offices, prior appointment is required to be taken for the registration of Sale Deed. At the time of registration, the documents are submitted to the Reader of the Sub Registrar of Assurances for scrutiny. After scrutinizing the documents, the Reader forwards the document to the Sub Registrar. Thereafter, both the parties, along with two witnesses have to appear before the Sub Registrar to admit the execution of the document. The witnesses are required to authenticate the identity of the parties. A copy of the document shall be pasted in the concerned book and the original document shall be returned to the buyer within 5-7 days. The process costs around Rs.5,000 – Rs.6,000.
Mutation of Name in MCD Records
At this stage, the buyer or his lawyer applies to the Municipal Authority to mutate the title of the property in his favor. The buyer must submit the duly signed application along with an affidavit, an indemnity bond, and a certified/notarized copy of the registered title deed. The Circle Revenue Office assesses the claim, settles the value of the property tax (which can be paid online), and issues a letter of mutation in favor of the buyer certifying that the property has been mutated under the buyer’s name. The process takes around 30 days and costs around Rs.10,000 – Rs.15,000.