Buying and selling of real estate property involve a series of steps. It starts with planning a budget, continues with seeking the best property in the locality and goes beyond the registration.
Whether it is a commercial or residential property, property registration plays an important role. Regardless of other factors like the type of property, locality of property and so on, registration of the property is an inevitable part of a legitimate deal.
Section 17 of the Registration Act, 1908
In India, Section 17 of the Registration Act, 1908, mandates the registration of the sale of immovable property for a value more than INR 100. This clearly implies that any transaction that involves the sale of immovable property of more than INR 100 must be registered.
The law applies effectively to the gift of the property also. This means the gift of real estate property must also be registered, no matter whether any monetary exchange is involved or not. In addition, all transactions of the lease for a period of more than a year also need to be mandatorily registered.
Registration Act of 1908 controls Property registration in India. The act mandates submission of some documents along with payment of registration fees and stamp duty, and signing of documents by both the parties i.e. the seller and the buyer. This article highlights some important facts one should know about property registration in India. Here we go….
Procedure for Property Registration in India:
The procedure for Property Registration in India starts with the verification of the title of the property. Once the verification is completed, the next step is the estimation of the value of the real estate property. Based on the value of the property, stamp papers are prepared, followed by the preparation of the sale deed.
After the completion of all these formalities, the buyer has to mandatorily pay the stamp duty & registration charges and submit the registration documents to the Sub-Registrar.
Documents required for the Property Registration in India:
There are certain documents required for property registration in India. The documents are mentioned below:
- Aadhar card.
- Copy of the original sale deed that has been verified.
- Passport-size of both seller and purchaser.
- Copy of NOC according to the land ceiling Act.
- Copy of Municipal tax bill.
- Construction completion certificate.
- Copy of the latest property register card.
- Paper of agreement between the seller and the original purchaser.
Time Limit for Property Registration in India
Starting with the time limit, one must know that the property document must be mandatorily registered along with the specified fee within four months from the date of execution.
The registration fee that has to be paid at the time of property documentation is 1% of the value of the real estate property. However, the maximum fee can be INR 30,000.
In case of the expiry of the deadline, the buyer of the real estate property needs to write an application to the sub-registrar stating the reason for the delay. In case of acceptance of apology from the buyer and approval by the registers, a buyer can register the documents along with a registration fee that may be ten times the original registration fee.
Fees for property registration in India
In India, stamp duty along with the registration fee is charged by the buyer. Stamp Duty of around 5% to 7% of the total market value of the property is levied whereas the registration fee is 1% of the market value of the property in most of the states in India. A concession of 1 to 2 % on this tax is given to the women in India.
Let’s have a look at the registration charges levied in different states in India.
- In Banglore, 1% of property value is charged as the registration charges.
- In Delhi, 1% of the total market value of the sale deed along with a pasting charge of INR 100 is charged.
- In Chennai, 1% of the market value of the property is the registration fee that a buyer has to pay.
- In Punjab, irrespective of the buyer’s gender or property’s location, a registration fee of 1% value of the transaction cost has to be paid by the property purchaser in Punjab.
One of the best real estate companies in Punjab – BullsEstate helps the buyers with all the legal formalities and informs them about the taxes in advance to smoothen the buying and selling of real estate properties.
Stamp Duty on Property Registration in India
Stamp Duty is the fee that is levied by the state government on the documents required for the registration of the property. As per Section 3 of the Indian Stamp Act, 1899, Stamp duty has to be mandatorily paid during the time of registration of real estate property. Stamp duty is different from the Registration fee and differs from state to state.
In Delhi, stamp duty and transfer duty is levied @ 4% if the buyer is a woman and @ 6% if the buyer is a man.
In Punjab, 5% of the property cost is levied as stamp duty on women property buyers, whereas for men buyers, the stamp duty is 7% of the property cost. The stamp duty is 6% of the transaction value, in the case of (man + woman) joint ownership.
If you are looking for the best 2 bhk and 3 bhk apartments in your locality in Punjab, get in touch with the leading real estate agencies in Punjab to get an estimated overall value you would need to pay for your dream property.
BullsEstate is the best real estate company in Mohali, Punjab that gives you an overall idea of the price of the real estate property after summing up registration fee, stamp duty, loan processing fee and so on.
Stamp Duty on Property Registration in India
In the case of Non-registration of the real estate property, the buyer does not have any registration paper or any other proof about the ownership of the property. This may lead to loss of real estate property and eventually turn into a big loss of investment.
Exchange of ownership through registration of real estate property is beneficially in the short as well as long run. It keeps you away from the risks of losing investment on real estate property and acts as proof of your ownership which you may need in case of dispute, loan processing, etc.
When you purchase a property from leading real estate firms such as Squareyards, BullsEsatte, etc, you get all the guidance to complete the legal formalities as required.