Among the many tasks that a homebuyer has to perform is the responsibility to register the property with the government, after paying stamp duty and registration charges. Registration of the property transaction and related documents is done under the various provisions of the Registration Act, 1908.
Here are the answers to certain frequently asked questions involving the topic:
IS IT A MUST TO REGISTER PROPERTY PURCHASE DOCUMENTS?
Under the provisions of the Act, the registration of these property documents is a must:
- Documents pertaining to gift of immovable property.
- Documents that are created to 'create, declare, assign, limit or extinguish' any right, title or interest of the value of Rs 100 and upwards in an immovable property.
- Leases of immovable property that are created for a period of one year or more.
- Documents that are created after a court order transferring any right, title or interest of the value of Rs 100 and upwards in an immovable property.
IS THERE A TIME LIMIT, TO APPLY FOR REGISTRATION OF A DOCUMENT?
The document should be presented for registration within four months from the date of signing. A will on the other hand can be registered at any time.
WHAT IF ONE FAILS TO REGISTER THE PROPERTY TRANSACTION?
Property transactions that are not registered do not have legal validity. Unless a property is registered in your name, you are not its legal owner, even if you are occupying the space.
REGISTRATION OF WHAT DOCUMENTS IS OPTIONAL?
In certain cases, registration of documents is optional. These include:
- Documents, other than instruments of gift and wills, which purport or operate to create, declare, assign, limit or extinguish any right, title or interest of a value less than Rs 100 in an immovable property.
- Leases of immovable property for any term not exceeding one year. Registration for leases that are exempted under Section 17 is also optional.
- Documents that are created after a court order transferring any right, title or interest of value of less than Rs 100 in an immovable property.
- Wills.
WHAT PROPERTY DOCUMENTS NEED NOT BE REGISTERED?
Certain property-related documents, as specified under the Act, need not be registered. These include:
- A grant of immovable property by the government.
- Any order made under the Charitable Endowments Act, 1890, vesting any property in a treasurer of charitable endowments or divesting any such treasurer of any property.
- Property purchased at a public auction where a civil or a revenue officer is the seller.
CAN THE SUB-REGISTRAR REJECT MY REGISTRATION APPLICATION?
The sub-registrar can refuse to register your property if:
The language is not comprehensible: If a document is written in a language which the registering officer does not understand, he may refuse to register the document. Such a document must be accompanied by a translation into a language commonly used in that area.
Documents contain interlineations, blanks, erasures or alterations: The registering officer may refuse to register documents that have interlineation, blank spaces, erasures or alterations.
If details of property maps or plans are not provided: Documents relating to immovable property are not accepted for registration unless these contain a description of such property sufficient to identify the same.
WHAT IF THERE ARE FALSE STATEMENTS MADE IN DOCUMENTS?
Section 82 of the Act says that an imprisonment for up to seven years or a fine (no specific amount is mentioned in this regard) or both could be imposed, in case a buyer 'intentionally makes any false statements, presents a false copy or translation of a document or a map or plan'. Attempts to 'falsely personate' other people is also a punishable offence.
IS THERE A TIME LIMIT WITHIN WHICH ONE HAS TO COLLECT THE REGISTRATION PAPERS?
Except in case of wills, all other registration-related documents must be claimed within a period of two years of registration, failing which the papers might be discarded by the office. The maker of a will can register his will during his entire lifetime.
CAN A WILL BE REGISTERED AFTER THE DEATH OF THE WILL-MAKER?
The will of a person can be registered even after his demise. To do that, the claiming party will have to produce the document and other records relating to the death of the will-maker, the witnesses and the scribe before the sub-registrar. In case the registrar finds no objections in the matter, he will register the will. However, after the will is registered, a procedure known as will enquiry will be carried out by the sub-registrar's office, to further check the authenticity of the claims.
WHAT ARE THE STAMP DUTY AND REGISTRATION CHARGES FOR REGISTRATION OF WILLS?
Unlike property, there is no stamp duty that has to be paid for registering of a will. For registration of a will during the lifetime of the testator, a registration fee of Rs 100 and nominal user charges are to be paid. To register the will after the death of the testator, an inquiry fee has to be submitted, apart from the above-mentioned charges.
WHO IS RESPONSIBLE FOR FIXING PROPERTY REGISTRATION CHARGES?
State governments fix stamp duty while registration charge is a central levy. While stamp duty charges vary from state to state (within a range of 2-10 per cent of the transaction value), a buyer generally has to pay one per cent of the deal value as registration charges. In some states, buyers also pay a flat fee on properties of a certain value.
States also fix charges for searching of the registers (in case you need to find out something from the records), for making or granting copies of reasons, entries or documents, before, on or after registration. They also decide the additional fees payable for the issue of commissions, for filing translations, for attending at private residences and for the safe custody and return of documents.
