Registration of a newly purchased house is a mandatory requirement after the deal is through and all necessary transactions are completed between the developer and the homebuyer. Besides the transfer of property in the name of the buyer, the legal documentation serves as a proof of sale-purchase deal between two parties for any future transaction and also relieves both at the same time. A delay beyond four months from the date of agreement signing may attract heavy penalty on homebuyers, as per the registration laws.
*Disclaimer: Let the reader note that the following is a request by the CREDAI- MCHI and hasn’t really been accepted or implemented yet by any of the regulatory bodies.
According to the section 24 of the Registration Act of 1908, the property documents need to be registered within four months of the date of the signing of the agreement. In case not done so, a fine, not exceeding 10 times the registration fee, is to be levied each month in different slabs. In purview of the current pandemic situation, the CREDAI Maharashtra has requested the State government to provide four months extension for registration of the property deals executed. The move is expected to relieve the buyers significantly, by avoiding a heavy penalty for delayed registration, who could not register their property yet.
The developers’ body has specifically asked the Government of Maharashtra to consider buyers’ dilemma and not charge the penalty amount mentioned under the law. The communication by CREDAI Maharashtra has stated, “The Inspector General of Registration and Stamps (IGR) of the state is conferred the powers under section 70 of the Registration Act to remit wholly or in part, the difference between any fine levied under section 25 of section 34. We request you extend it for a further period of four months.” The State IGR office has confirmed about receiving the request letter sent by CREDAI, and they have forwarded the letter to the concerned State government’s department.
Due to the pandemic, several home buyers in Maharashtra would not be able to meet the four-month deadline to register their property. The Association has always advocated in interests of homebuyers and developers and this time has also urged for relaxation in fine. Earlier also, due to the requests put forth by CREDAI-MCHI a 3% waiver in stamp duty by the Maharashtra government helped the homebuyers significantly that boosted the confidence of all homebuyers.
CREDAI-MCHI is a recognized body of real estate developers that comprises members from the realty sector across Mumbai Metropolitan Region (MMR). The body has always been instrumental in pushing the concerns of homebuyers and the developers. Formed in 1982, the MCHI is also a member of the Confederation of Real Estate Developers’ Associations of India (CREDAI). At present, CREDAI MCHI has a robust membership of more than 1400 developers in MMR region. Recognized by the Central Government and Government of Maharashtra, CREDAI-MCHI helps both State and the Centre in meeting their goals of providing homes, a basic necessity indeed.