Property registration process in India

PROPERTY REGISTRATION PROCESS IN INDIA

Stamp duty is governed by the Indian Stamp Act and the Registration Act. The buyer must pay stamp duty and registration fees to state governments when transferring property ownership. Rates vary per state because it is a state tax. Most states charge stamp duty and registration fees as a percentage of the total transaction value.

After paying the stamp tax, the document must be registered under the Indian Registration Act. This is done within the supervision of the Sub-Registrar who has local control over the property. The primary goal of document registration is to record the execution of the document. In most states, the registration charge is roughly 1% of the stamp duty. The buyer does not become the formal owner of the house unless the deeds are registered in the buyer's name in government records. The Registrar keeps an original copy of the registration that can be resorted to in the event of a dispute.

Procedure for registering a property

Step 1: Determine the worth of your property using the local circle rates.

Step 2: Now, compare the circle rate to the actual price paid. The higher of the aforementioned two figures would be used to pay the stamp duty.

Step 3: You must now purchase non-judicial stamp papers in the amount determined by the computation.

Step 4: Purchase the stamp papers in person or online. These sheets are available from authorized stamp dealers. Stamp duty can be paid through the Collector of Stamps, or proof of payment must be provided if it has already been paid.

Step 5: You must now prepare the deed and type it on stamp papers. The subject matter varies according to the type of the transaction, which could be a sale, lease, mortgage, power of attorney, or another similar arrangement.

Step 6: The transacting parties must now go to the Sub-Office Registrar with two witnesses to have the deed registered. Each person involved in the procedure should provide their photographs, identification documents, and so on. An original copy of the deed, as well as two photocopies, should be carried.

Step 7: You will receive a receipt once the selling deed has been registered. After about two to seven days, one can return to the Sub-Office Registrar to acquire the sale deed.

Step 8: Once you've registered the original sale deed, you can have it confirmed by the Registrar's Office using the registry details and date.

Section 17 of the Registration Act requires you to register your property in India. If the property is worth less than Rs 100, registration is not required. Once the stamp duty and registration costs are paid, the property is registered in the name of the new owner. The stamp duty and registration fees vary slightly by state.