Registration procedure of transfer of property

Registration procedure of transfer of property

Transfer of property

Transfer of property is defined in section 5 of “Transfer of property Act 1908.

“transfer of property” means an act by which a living person conveys property, in present or in future, to one or more other living persons, or to himself, 1[or to himself] and one or more other living persons; and “to transfer property” is to perform such act. 1[In this section “living person” includes a company or association or body of individuals, whether incorporated or not, but nothing herein contained shall affect any law for the time being in force relating to transfer of property to or by companies, associations or bodies of individuals.]

So, it basically refers to the conversion or transfer of property from one person to the other person. Land or property registration in India is governed as per section 17 of the Registration Act, 1908.

The basic purpose of registration is to record the execution of the document. It’s only when we register the document it becomes legal and the ownership is transferred to the right owner.

There are various modes of transferring ownership of the property and they are mentioned below-

Permanently by

1. Sale deed– It is a document prepared on the basis of previous ownership document for the transfer of property from seller to the buyer providing the buyer the absolute as well as the undisputed ownership of property

2. Gift– Transferring a property can be either as a gift as well as by a will. And a gift deed is mostly used when the transfer of property is within the family and a gift deed for an immovable property is compulsory to be registered with the sub-registrar of assurances failing which the transfer will be invalid. Such a transfer is irrevocable. Once the property is gifted it belongs to the beneficiary and you now you cannot reverse the transfer or even ask for monetary compensation. A will is applicable only after the lifetime of the executor. A registered will entitles the beneficiary to get the property transferred on their name after the lifetime of the executor.

3. Relinquishment deed- A relinquishment deed is particularly used if one wants to transfer his rights in a property to another co-owner. Such a transfer is irrevocable even if it is without any exchange of money. As with all documents related to the transfer of immovable property, a relinquishment deed needs to be signed by both parties and also registered.

Transfer of property involves transaction of very large sum of money, it is important to be assured on the documents that are required and used under different way of transfer of property. It is a good idea to get the property documents prepared and verified by a property lawyer beforehand.

Temporarily by way of-

1. Mortgage

2. Lease

3. Leave and License agreement

Registration of property in India involves the following steps-

• Verification of the property’s title.

• Property value estimation.

• Preparation of the stamp papers.

• Getting sale deed ready.

• Payment of registration charges and stamp duty.

• Approach the sub registrar for the registration.

• Submission of documents

Documents required before registering a property

• Encumbrance Certificate

• Receipt of Payment of Dues

• Preparation deed

• Other Certificates such as-

1. Khata Certificate

2. No- Objection Certificate

3. Occupancy Certificate

Registration of the deed

At the end of the property transfer procedure, to legalize the transfer of property one needs to take the deed to the office of register’s to get it filed. . The documents that need to be registered should be submitted to the office of the Sub-Registrar of Assurances within whose jurisdiction the property falls.

This can be referred as “recording the deed,” and failing to follow through with this step will cause many issues in a while as a result of nobody would understand your relative’s claim to the property. At this time, you’ll pay fees and taxes related to the deed. And by the end of the day, the recipient will be considered as the legalized owner of the transferred property

Registration of transfer of ownership of property

• Stamp duty on the gift deed may or may not be equal to the general stamp duty you pay on selling or relinquishing the property.

• Circle Rate refers to the minimum price at which the stamp duty is payable in case of transfer of immovable property. Circle rates differ within cities in the same state, and among various localities of a city. Where the actual price paid by the buyer is less than circle rate, stamp duty is generally paid on the circle rate. But , sub-registrar is required to allow registration of the property even when stamp duty paid is lower than the circle rate

• State governments collect the stamp duty and registration charge on the declared value or the circle rate whichever is higher on the property being transferred .Besides the stamp duty, one person of the value of the property is charged as registration fee. If we talk about the situation of the individuals and the Hindu Undivided Families receiving properties from non- relatives then the circle value rate of the property would be treated as the amount on which income tax is payable according to the Income Tax act

Property registration fee in India

The registration fee for property document is 1% of the value of the property which is subject to a maximum of rupees thirty thousand.

Limitation Period for the registration of property

The time limit for registering the property is within 4 months of its execution along with the requisite fees. It is mentioned in section 23 of Indian Registration Act 1908.

Consequences of non-registered property

• The ownership of the property will not at all be legal in the eyes of the law.

• Ownership could be revoked anytime on the failure of registration.

• Further, no violation of any right by an unregistered property will be entertained by the court.

• The initiation of insurance of property will not be initiation by any bank.

Author: Naina Pathak,
Amity University Madhya Pradesh

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