Property Enlisting Laws - Things you must know

The real estate transaction always comes with complex procedures that challenge the limit of understanding of a first-time buyer. Buying a property doesn’t end with only paying the price and taking possession. There are many complicated aspects that are often hidden in plain sight which could get easily neglected and later become a hindrance. Before such a situation arrives, it’s always recommended to take professional help. One of the most important steps in the real estate process is the registration of the property. Let’s take a look.

According to the law under the Indian Registration Act, it is mandatory to register the transfer of possession related to immovable property such as land, buildings, apartments, with a value that exceeds Rs.100. It indirectly means that all the transactions should be enlisted because no property can be bought just for Rs.100. Adding to it, any gifted property or leased property for more than 12 months should also be registered.

All the documents pertaining to the real estate transaction have to be submitted to the Sub-Registrar’s office. The signatures of the seller and buyer should be present in the documents along with 2 witnesses for the registration. In case any party is unable to be present at the time of registration for any unforeseen reasons, the sub-registrar may appoint an officer to visit and collect the documents. An auditor may visit the buyer to review and take necessary signatures after the possession. Every proof should be provided such as government authorized ids such as Aadhar and PAN cards, power of authority in case they are representing someone else. When a company is a part of the transaction, then the individual embodying the organization must have a letter of authority by the board authorizing him/her to carry out the transaction.

One more thing to know that the buyer must provide is proof of stamp duty payment. Before the verification of the documents, the officer will check if the fit stamp duty charges are paid. In case the stamp duty to buy property is yet to be paid then the registration will be put on hold.

The time limit for enlisting of the property is four months. The fee charged for the process is 1% of the price of the property. In case the buyer fails to register the property within the given time limit, an application must be given to the sub-registrar asking for an extended period which may cost you more. It is of utmost importance to register the property in the given time and failing to do so may put the buyer at a risk.

The law of registration of documents is necessary under the Indian Registration Act to ascertain the registration of documents, prevention of frauds and assurance of title under the buyer’s name.