Have you just bought a new home and are looking to celebrate with your near and dear ones? Well, keep the bubbly corked and celebrations on hold till you’ve finished registering your new home. As many of you already know, it is compulsory to get the sale deed for your home registered under the Registration Act of 1908. This procedure is highly vital and in fact interesting too. As they say, these moments in life simply mandate growing up!
All transactions involving the sale of property for values which surpass Rs. 100 are to be registered. All transactions involving gifting of immovable property and leases for 12-month periods also have to be registered.
Understanding the whole process and documentation aspect
- The property documents should be given to the sub-registrar of assurances office for registration which has the property location under its jurisdiction.
- The authorized signatories for the buyer and seller have to be there at the office in addition to a couple of witnesses for document registration.
- ID proof should be there for the signatories. The acceptable documents in this case include the PAN Card, Aadhar Card or other identity proof issued by any Government organization.
- Signatories should also provide the power of attorney in case they are working on behalf of anyone else.
- A company which is party to this sale deed should have the representative present with all necessary documents including letter of authority or power of attorney along with a copy of the company’s board resolution which authorizes implementation of the registration process.
- The property card has to be given to the sub-registrar in addition to original documents and proof of stamp duty payment. Prior to registration, the sub-registrar will be verifying whether you have paid suitable stamp duty based on the ready reckoner.
- Documents that you have to register should be provided within 4 months of their date of execution in addition to the fees chargeable.
- In case the time limit is crossed, you can apply to the sub-registrar for condoning the delay. This has to be done within another 4 months and the sub-registrar may register your documents provided you pay a fine that is around 10 times of the original fee for registration.
- Registration charges for property documents is 1% of the property value with the maximum limit being Rs. 30,000.
- The documents that are registered will be scanned and returned to you on the same day itself in most cases with easy and seamless computerization of the entire process. It may take up to 15 days in many cases as well.
What you should keep in mind
- Always have all the necessary documents handy before visiting the sub-registrar’s office.
- Make sure you know the timing of the requisite sub-registrar’s office and plan your visit accordingly.
- Make sure that you know the stamp duty which varies from one state to another.
- Ensure that stamp duty and other charges are paid before you actually visit the office of the sub-registrar. Take legal help in this aspect.
- Always have original property documents with you along with your PAN Card and Aadhar Card at all times.
- These are the things to show whenever your name is called.
- In case the deal is worth more than Rs. 50 lakh, buyers have to provide the proof of deduction of 1% as TDS from the value of the property. Keep this document on your person.
- Always make sure that your witnesses are present on the requisite day with valid proof of identity.
Your guide towards stamp duty
Stamp duty is the tax on property which has to be paid whenever the buyer is handed over the property by the seller. Stamp duty is paid on the basis of the transaction value. The payment of stamp duty on the sale agreement/deed is the legal evidence to be presented in the court of law in case of any dispute. This works as proof that any property is officially in your name and has been registered as such.
Whenever stamp duty is paid, it will be recorded automatically in the list of transactions for buying property as noted by the Government. Stamp duty on has to be paid on the day of execution of the sale agreement or the next working day. In case of delay, a penalty of 2% has to be paid every month on the amount of the stamp duty with a maximum rate of 200%.
Stamp duty is worked out on the basis of the agreement value/market value whichever is higher. It is only payable on the registration document contents and not transaction value. The Stamp Duty Ready Reckoner is the reference for the authorities in this regard. The charges vary from one State to another. You can pay stamp duty through either non-judicial stamp papers, franking or e-stamping. Post payment of stamp duty, the document has to be registered within four months as mentioned above.