With more people wanting to register their property, the Indian government has made new rules to make sure the process goes smoothly and quickly for everyone. The goal of these new laws is to make it easier for people to know what their rights and responsibilities are when it comes to registering property.
This article will explore the new property law in India, providing valuable insights into the process and ensuring that you have all the information you need to get started.
Mandatory laws for property registration in India
India’s government has put into place two important laws that make it easier to buy and sell property in the country.
1. Registration Act, 1908
According to this property law, all Indian citizens who own property worth more than ₹ 100 must notify the government. This is a crucial step because it gives the government a complete inventory of all land and buildings in the nation, which may be used to settle legal issues down the road.
2. Indian Stamp Act, 1889
This property law mandates that every person must pay stamp duty on documents related to the property before it can be registered. The amount of stamp duty varies depending on the value of the property and is an important source of revenue for the government.
New Property Registration Rules in India
In 2020, the Indian government made a new set of rules for registering property. These rules were meant to make the process easier and more open. Here are some of the key changes that you should be aware of:
● Efficient document processing
Thanks to improvements in technology, it is now possible to get copies of all important documents on the same day as registration. This effectively eliminates the need for long wait times.
● No compensation for unregistered properties
Any property that is acquired by the government but is not registered cannot demand compensation under an Income Tax return. This highlights the importance of registering your property to protect your rights and interests.
● Legal validity of registered properties
It is important to know that properties that haven’t been registered have no legal value and can’t be used as proof in court. This shows how important it is to make sure your property is registered and that all the paperwork is in order.
Property registration fees in India
In India, each state has its own set of fees for property registration. Most of the time, the fees are between 1% and 3% of the property’s value, with a cap of ₹ 30,000. The fees are subject to change periodically, so it is important to stay informed of any updates. Here is a breakdown of the fees in some of the major cities in India:
● Delhi
The registration fee in Delhi is 1% of the property’s market value, plus Rs 100 for filing fees.
● Mumbai
For houses in Mumbai the registration fee is 1% of the agreement value and is capped at ₹30,000.
● Bangalore
The fee in Bangalore is 1% of the value of the property.
● Chennai
In Chennai, the fee is 1% of the market value of the property.
It is important to note that these fees are subject to change and may vary depending on the state and location.
Consequences of failing to register a property in India
Failing to register a property in India can have serious consequences and risks. First of all, a property that hasn’t been registered isn’t legal and can’t be used as proof in a court of law. This means that establishing ownership of a property may not be possible if the owner’s name is not listed in public records as the owner of the land.
In addition, there is a time limit for registration in India. The registration must be completed within four months of the completion of the transaction. If it isn’t registered in this amount of time, the buyer can ask the sub-registrar for more time. But if the buyer doesn’t get the extension, they may have to pay a fine equal to up to 10 times the initial registration fee.
Property registration process in India
Here is a comprehensive guide to the registration process in India:
1. Estimation of property value
The first step is to estimate the value based on the circle rate in the area where the it is located. This will help you determine the stamp duty and registration fee that you will need to pay.
2. Purchase of non-judicial stamp paper
The next step is to buy non-judicial stamp paper from a licensed stamp seller or online. This paper will be used to sign the deed based on the nature of the transaction.
3. Signing of deed
The deed must be signed on stamp paper by both the buyer and seller and two witnesses. You will also need to bring passport-size photographs and identity proof for both parties to the sub-registrar’s office.
4. Visit to sub- registrar’s office
The buyer and seller, along with the witnesses, must visit the sub registrar’s office and submit all the necessary documents, including a copy of the municipal tax bill, a property register card, a construction completion certificate, a No Objection Certificate, and payment receipts for stamp duty and the registration fee.
5. Payment of registration fee
Before the property can be registered, the buyer must pay the registration fee and turn in all the necessary paperwork. The fee may vary from state to state, so it is important to gather all the information from the registrar’s office.
6. Verification of documents
The registrar will check the documents you send in, and you will get a receipt after the deed is registered.
7. Collection of sale deed
You can get the sale deed from the registrar’s office two to seven days after the property is sold, depending on where it is. In metropolises, the registration of documents may take 2-3 days, while in rural areas, it may take up to 7 days.
Online property registration
With the growth of technology, the government in some states has made it possible to register property online. You may submit your stamp duty plus registration fee payment online and print out a receipt at the same time. The payment can be made using net banking, a debit card, or a credit card.
Only a few states in India are allowed to provide online services for property registration. Make sure there is an online property registration gateway for the state where the property is situated.
On an online portal, only the services listed below are available.
- Check the cost of stamp duty.
- Pay the registration cost and stamp duty.
- Online payment receipt.
By doing these things, you can make sure that the process of registering your property goes smoothly and quickly.
Conclusion
In India, residents must know the steps and documents needed for property registration. To help make the process easier, it is recommended that you seek the assistance of a professional or a company that specialises in property registration. HomeCapital offers a unique solution for home buyers who are looking for financial assistance with their property purchases. With interest-free help for a down payment, payments on possession, stamp duty payments, and other property payments to developers, the HomeCapital program covers all of your property-buying needs.