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Document registration regarding the sale and purchase of immovable property is mandatory. Mandatory registration of documents ensures evidence collection, prevention of fraud and assurance of title. Indian Registration Act deals with the laws regarding document registration. This legislation provides for the registration of various documents, to ensure conservation of evidence, prevention of fraud and assurance of title. Section 17 of the Registration Act, 1908[1] governs the provisions regarding property registration in India. If we talk about the applicability of Indian Registration Act then it is applicable on whole of India except the state of Jammu & Kashmir.
Under the property registration, it is mainly concerned with ownership changes and transactions concerned with land/ immovable property. The legal title of land/immovable property must be registered with the concerned authority.
There are certain benefits of property registration such as easy dispute settlement. Dispute settlement in case dispute arises in relation to that property. It reduces the risk of fraud. This helps the government as public records are helpful in conducting censuses, surveys and for any other purpose for which public database is required. With the help of the Computerized system, property registration can be done. It helps in eliminating middlemen and helps in the transparent valuation of the public documents.
Section 3 to section 16 of part II under the registration act deals with the property registration establishment. In India, property registration is a State Activity. In every State, Inspector-General is appointed by the State Government. In each district of India, there is a registrar and Sub-Registrar in each sub-district. Necessary books shall be provided by the state government for the office of every registering officer.
Suitable provision shall be made by the state government for the safe custody of the records related to property registration.
Part III of the registration act describes the registrable documents. There are certain documents which are required to be registered compulsory and these documents are defined under section 17 whereas there are certain documents which are not required to be registered compulsorily and these documents are defined under section 18.
Following documents shall be required for property registration:
The sub-registrar will verify all the documents before registration whether the stamp duty payment has been done or not. In case there of any deficit registrar will not register the required documents.
After satisfying with all the documents sub-registrar will pass an order of property registration. On the registration, the serial number will be issued along with the book no. and the page no. of that book under which an entry has been made for property registration.
Documents which are required to be compulsorily registered must be presented within the period of four months from the date it has been executed in India. These documents are required to be presented along with the requisite fees. In case of any delay, an application of condonation of delay can be filed with the sub-registrar within the period of the next four months. After imposing a fine penalty which may go up to 10 times of the original registration fees, a registrar may register these documents.
The property registration fee is 1% of the value of the property subject to a maximum fee of Rs 30,000. Previously, after a period of six months, documents which were presented to the registrar for property registration is returned. However because of computerization now the documents are returned on the same day after bearing the registration number and along with the proof that the documents have been registered by the registrar.
In case of failure of property registration, it can put purchaser into the huge risk. Such documents which are mandatorily required to be registered but not registered due to some reasons are not admissible as evidence in the court of law.
Read our article:No Property Registration without Property Tax
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