If you’re like the rest of us (not in the league of extraordinary gentlemen like the Tatas and Ambanis!), property is definitely a lifetime investment and one that has several consequences if you don’t get it right. As a result, you should always be extra careful when it comes to all the necessary documents required and other factors, particularly when you enter into the sale agreement with the builder and also the registration of the sale deed thereafter. This will save you ironically another possible lifetime of pain and regret which is always preferable isn’t it?
Section 17 is the section that covers property registration under the Registration Act of 1908. Here are some of the things that you should always keep in mind while registering your new home.
Key things to remember while getting your new home registered
Reputation of Developer & Property Credentials
Firstly, check the property in question for its overall credentials. The property must have all necessary documents in order along with a clean title deed minus any irregularities whatsoever. This is the first thing on your checklist before you venture for registration of the same. Additionally, scrutinize the reputation of the developer/builder carefully. A little homework and patience on your part will ensure peace of mind in the future by all means.
Most experts will recommend professional/legal assistance while you are going about the registration procedure. You may look to consult an industry expert or lawyer regarding the entire procedure of sale deed registration. There will be checks conducted by the person in question and all documents will be verified for authenticity and security along with examining the entire transaction for any irregularities.
When you are getting your property registered, always check information related to identification including documents like passport size photographs, PAN Card and the Aadhar Card among others.
Demand Draft Creation
When you are making a demand draft, the suitable amounts should be entered for the registration charge and stamp duty. This varies from one Indian State to another. As a result, check, calculate and verify the same carefully before making the demand draft.
Whenever you get property registered, there are multiple documents that are required. These include the following:
- Tax receipts of property taxes (latest) paid in case of the property.
- Sale deed in the name of the individual who is selling the property to you.
- Agreement of sale and construction executed in the seller’s favour by the builder/developer.
- Patta/Khata certificate for the property.
- Latest bank statements regarding any outstanding liabilities/loans.
- Latest electricity receipt and bill for the apartment/housing unit in question.
- Title documents provided by the landowner.
- Encumbrance certificate from the purchase date till the current date.
- Occupancy certificate from the developer and sanctioned building plan.
- In case of re-sale of the property, copy of all registered earlier agreements.
- Power of Attorney if any exists.
- No-objection certificate from the association of the apartment complex if applicable.
- Joint development agreement and sharing/supplementary agreement between builder and buyer if applicable.
Permissions and other licenses
You should always scrutinize all certificates and permissions very carefully with regard to properties being constructed by real estate developers. These include the commencement of work and environmental clearance certificates to even land usage verification, master plan, building plan, fire safety and water clearances, electricity clearances and so on.
Sale Deed Creation
This is one of the most vital documents with regard to property registration. The sale deed is created by attorneys of the seller and buyer alike. The sale deed will offer coverage for multiple things related to the transaction in question including the sale, lease and power of attorney among others. This should be created with a lot of care.
Stamp Duty and other aspects
Stamp duty calculations are done on the basis of the circle rate and also the varying stamp duties in case of different Indian States. The property value will also impact the stamp duty. This calculation should be done as per the current rate that prevails and there should be procurement of non-judicial stamp paper for this purpose.
Availability of witnesses
Bear in mind that the registration procedure can only be done when the sub-registrar’s office is approached by the person who is looking to get the property registered. For this procedure to happen smoothly, there should be two witnesses signing the registered document. Look into this matter as well.
For those transactions which surpass Rs. 50 lakh, buyers have to provide adequate proof that 1% of TDS has been deducted from the property value. This particular document also has to be displayed when the property is being registered. This is one aspect that not many know of although it is vital for the seamless completion of the registration process.
As you can see, property registration requires you to be mindful of quite a few things. However, do not fret; it is no rocket science that you’re dealing with here. Instead, a little diligence, homework and caution on your part will help you complete the registration process successfully without any roadblocks while keeping yourself free from future hassles in the bargain.