The property registration process is the legal process of transferring property ownership. This is between the seller to the buyer. It is a crucial step in the buy or sale of a property. The reason lies with the safety of the transaction and it’s binding to the property under the law. Here are the steps involved in the property registration process:
Step 1: Sale agreement
The first step in property registration is to execute a sale agreement. A sale agreement is a legal document that sets out the terms and conditions of the sale, including:
1. The sale price,
2. Payment terms,
3. Possession date and any other relevant details.
The sale agreement must be stamped and registered with the sub-registrar's office. Four months of the execution date is the deadline for the same. The stamp duty payable on the sale agreement varies from state to state. The same is calculated as a percentage of the property's sale value. Stamp duty is a tax that the state government levies on property transfer.
Step 2: Title search
Once the sale agreement is executed, the buyer must conduct a title search. A title search is a process of verifying the ownership of the property and checking for:
1. Any liens,
2. Encumbrances or disputes that may affect the property's title.
It is an important step in the property registration process. This is because it ensures that the property has a clear title. No such attached legal issues may affect the buyer's ownership rights. The buyer can engage a lawyer or a title search agency to search.
Step 3: Property valuation
The next step in the property registration process is to value the property. This document helps enquires about:
1. The stamp duty and
2. Registration fees payable on the property.
The valuer will consider several factors, such as:
1. The property's location,
3. Size and condition to arrive at a fair market value of the property.
A valuation report helps the buyer and seller arrive at an agreeable sale price.
Step 4: Stamp duty and registration fees Payment
The buyer, after valuation, must pay the stamp duty and registration fees. It has to be done at the sub-registrar's office. Both these fees are calculated based on the property's sale value. It must be paid before any process to complete the property registration process.
Step 5: Registration of the property
On completion of the above steps now, the buyer and seller have to appear. It must be before the sub-registrar to register the property. The sub-registrar will verify the documents, including the:
1. Sale agreement,
2. Title search report
3. Valuation report and register the property in the buyer's name.
The buyer must provide proof of identity, address, and PAN card at registration. After this, the buyer holds the legal ownership of the concerned property.
Step 6: Mutation of property
The buyer must now apply for the property mutation in the local municipal records. It is the process of updating the property records to reflect the change in ownership. The buyer must submit the registration documents along with the following:
1. An application and
2. The requisite fees to the local municipal office.
The mutation process ensures the buyer's ownership rights.
Step 7: Obtaining the possession certificate
Once the mutation is completed, the buyer must get a possession certificate. The possession certificate is proof of ownership and may be required. It is an essential document that confirms the buyer's ownership rights.
In summary, the property registration process involves the following:
1. Executing a sale agreement,
2. Conducting a title search,
3. Valuing the property,
4. Paying stamp duty and registration fees,
5. Registering the property with the sub-registrar,
6. Applying for mutation, and obtaining a possession certificate.
It is important to follow the property registration process. The reason lies with the safety of the property and its legal binding under the law.