Navigating Property Registration in India
Registering a property in India can be a complex and time-consuming endeavor. This guide simplifies the process, breaking it down into digestible steps:
1. Property Selection and Agreement:
Begin by carefully selecting your desired property and thoroughly examining all its details. Negotiate the sale price with the seller and secure the deal with a 10% booking amount. This process culminates in an 'Agreement to Sell,' legally binding both parties to the agreed-upon terms. The seller then drafts a 'Deed of Sale,' reflecting the finalized sale price.
2. Due Diligence:
Before finalizing the offer, it's crucial for buyers to conduct due diligence. This involves verifying the property's title and ensuring it's free from any existing liens or encumbrances.
3. Stamp Duty Calculation and Payment:
Stamp duty, a state-levied tax on property transfers, forms a significant part of the transaction. Calculated based on the higher of the circle rate or market value, it typically ranges from 3-10% of the property value, with an additional 1% registration charge.
There are three ways buyers can remit stamp duty:
- Non-Judicial Stamp Paper: Purchase stamp papers equivalent to the stamp duty amount and print the sale deed on them.
- Franking: Print the sale deed on plain paper and pay the stamp duty via cheque, cash, online transfer, or demand draft. The bank subsequently attests to the sale deed.
- E-Stamping: Generate an e-stamp online through the Stock Holding Corporation of India (www.shcilestamp.com), payable at authorized centers.
Calculating stamp duty requires careful consideration of the property's value. The stamp duty is calculated based on the higher value, whether it be the actual market value or the government-assigned circle rate.
Example 1: Actual property value: ₹40 lakhs. Circle rate: ₹50 lakhs. Stamp duty payable: On ₹50 lakhs.
Example 2: Market value: ₹90 lakhs. Circle rate: ₹80 lakhs. Stamp duty payable: On ₹90 lakhs.
Online stamp duty calculators can help estimate the amount, keeping in mind variations based on location.
4. Sale Deed Drafting and Execution:
The sale deed (also known as a conveyance deed or gift deed) legally formalizes the property transfer. This comprehensive document details buyer and seller information (name, address, age), payment method, and other pertinent details. Once printed on stamp paper (if applicable), both parties and two witnesses sign each page, with witnesses signing the last page.
5. Registration at Sub-Registrar's Office:
The drafted sale deed must be registered at the sub-registrar's office within the property's jurisdiction. Scheduling an appointment beforehand is recommended. The buyer, seller, and witnesses must be present, with provisions for power of attorney if necessary. Required documents include Aadhaar cards, identity proofs, and photographs. Signatures and fingerprints are recorded in front of the sub-registrar. The registered sale deed is typically available for collection within 15-20 days, often handled by the bank in case of a mortgage.
6. Property Mutation:
The final step involves transferring the property title in land records, a process known as mutation. This applies to properties outside municipal limits. The terminology for mutation varies across states (e.g., Jamabandi, Khatauni, 7/12, Khatian). This completes the entire property registration procedure in India.
By understanding these steps, buyers and sellers can approach the process with greater confidence and a clearer vision of their property goals. Remember that you should always seek legal advice for specific property registration related queries.