Benefits Of Register Property On Time

Registering  property should be the top priority when you buy a house as it proves your legitimacy to carry out any transaction.

A person is considered the lawful owner of a property only after he gets it registered in his/her name.

Changes in Ownership..!
Land or Property Registration refers to the registration to document changes in ownership & transactions involving immovable property. Whenever you buy a piece of land or immovable property, you need to register the same with the authority concerned, so that a legal ownership title is guaranteed to you. This greatly reduces risk of fraud &  helps solve disputes easily, in addition to creating & maintaining an up-to-date public record.


Supreme Court Order..!
If you fail to do so, the previous owner or the developer/promoter/builder will be considered the legal and rightful owner.

The Supreme Court had ruled last year (2011) that all property sales would be considered invalid unless the sale deed was duly stamped and registered.

"In the absence of the deed of conveyance (duly stamped and registered as required by law), no right, title or interest in an immovable property can be transferred," the Supreme Court had held.

Under Section 49 of the Indian Registration Act, 1908, the documents (sale or gift agreement) will not have any bearing on the property &  will not confer any transaction rights on the property.

In case of a dispute, you will not have any rights on the property if it is not registered in your name. You will need to register the property (plot of land or House) within 4 months of the date of execution of the sale deed.

Stamp Duty and Registration Fee..!

If the value of the property is Rs. 20 lakh, you will have to pay a stamp duty of Rs.1,00,000 to Rs. 2.70,000 (5 to13.5 % of the property value) and a registration fee of  Rs 20,000 (1%).

In case of a delay, you can request the district registrar to grant you an extension of another 4 months.

However, you will have to pay a penalty of up to 10 times to 30 times of the registration fee. Usually, the penalty levied is 100 to 300% of the registration amount, but it can go up to the maximum amount too.

So, for a house of Rs. 20 lakh, the penalty could be an additional Rs. 20,000 to Rs. 60,000, while the maximum limit would be Rs. 1 lakh. If the property is gifted, the stamp duty payable is lower at 2%, though the registration charges (1%) will be the same.

The stamp duty and registration charges will be applicable as per the current year, even though you may have bought the property a few years ago. The one exception to this rule will be if you have inherited the property.

It is not necessary to pay stamp duty on a property bequeathed through a will.

You will have to pay the stamp duty and registration charges for the sale deed and get these documented at the registrar's office. If you are buying a house that was previously owned, the transaction will also entail a duly stamped & registered transfer deed.

In case the property is mortgaged, the lender will require a no objection certificate from the housing society. It will then initiate the loan disbursement, depending on the repayment eligibility of the buyer. The registration process can be carried out only after the bank confirms the disbursement to the seller.

The housing society too will need to be informed, otherwise the new owner will neither be able to create a  third party lien nor be able to sell the property.

Property Online Register..!
 

Under the computerised Land &  Property Registration system, registration is easy. It facilitates transparency in valuation &  eliminates middlemen. Some states require an application to be submitted to the concerned authority, which may be the Sub Registrar 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.

Some state governments are trying to ease the registration process. For instance, Delhi is the first city where people can register their property online by paying the charges through electronic transfer. Other states are likely to introduce this system.

Src: ET
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