Done with Documents? – Let’s Register !

Whether you’re buying a residential property for your family’s future, investing in a commercial space, or simply looking to diversify your investment portfolio, register your property is an essential legal requirement for Non-Resident Indians (NRIs). 

As an NRI, you may have successfully acquired your dream property, ensuring that all the necessary documents are in order. However, navigating the property registration process can sometimes be daunting, especially if you’re not familiar with the legal procedures and requirements in India.

Essence of Property Register Act 1908

The Registration Act of 1908 was established with a specific constitutional purpose regarding property registration. This Act was enacted to bring order, discipline, and public notice to property transactions while also safeguarding against the falsification of transfer documents. As a result, a registered document holds the utmost credibility and can serve as concrete evidence in a court of law.

Register Property Process

To register their property in India, NRIs (Non-Resident Indians) can follow the steps below when all their documents are in order:

Step 1: Obtain the Necessary Documents

Ensure you have all the required documents for property registration. This typically includes the sale deed, previous deeds establishing the chain of ownership, an encumbrance certificate, tax receipts, and identity/address proof.

Step 2: Power of Attorney (PoA)

If you’re unable to be physically present in India for the registration process, you can appoint a trusted representative through a Power of Attorney. This authorised person can act on your behalf during the registration process.

Step 3: Visit the Sub-Registrar’s Office

The property registration process takes place at the Sub-Registrar’s Office in the jurisdiction where the property is located. Visit the office with all the required documents, including originals and copies.

Step 4: Pay Stamp Duty and Registration Fees

Calculate the stamp duty and registration fees applicable to your property based on its value and location. Pay these fees at the designated bank counter within the Sub-Registrar’s Office and obtain the challan or receipt as proof of payment.

Step 5: Document Verification

The Sub-Registrar’s Office will scrutinise your documents to ensure they are in order. They will verify the identities of the parties involved, check for any encumbrances or pending litigation on the property, and validate the property’s ownership chain.

Step 6: Execution of the Sale Deed

Once the documents are verified, both parties (buyer and seller) will sign the sale deed in the presence of two witnesses. If you’ve appointed a Power of Attorney, your representative can sign on your behalf.

Step 7: Biometric Verification

In some cases, the Sub-Registrar’s Office may require biometric verification of the parties involved in the registration process. This is typically done through thumb impressions or other biometric measures.

Step 8: Registration and Obtaining Documents

After the execution of the sale deed, the Sub-Registrar will register the property in your name. The registration process involves entering the details into the official records. Once registered, you can collect the registered documents, including the sale deed and registration certificate.

Step 9: Mutation and Updating Records to Register

After registration, it is important to update the property records to reflect the new ownership. This process, known as mutation, is typically done at the local municipal office or revenue department. It ensures that the new owner’s name is reflected in property tax records.

Is Property Registration Mandatory for NRIs?

Yes, property registration is generally mandatory for NRIs (Non-Resident Indians) when they purchase or own property in India. The registration process ensures legal recognition of and ownership rights over the property. It also helps safeguard the interests of the property owner and provides a valid proof of ownership. 

However, specific requirements and procedures may vary depending on the laws of the respective state or union territory in India. 

Time Limit to Register Your Property

According to the regulations, it’s necessary to register a mandatory document within four months from the date of its execution. If this timeframe is not adhered to, the document can still be registered within the following four months, but a penalty of up to ten times the registration fees will be imposed. 

Alternatively, even after eight months from the execution of the document, parties can choose to register it by attaching a deed of confirmation along with the payment of stamp duty based on the current market value.

However, if this timeframe has lapsed, it is recommended to create a fresh document to replace the expired one. 

The expired documents need to go through a process of adjudication by the collector and then be registered by the Joint Sub-Registrar, which can be a time-consuming procedure.

Property Register Fees

As per the relevant sections of the Act, the purchaser of immovable property is obligated to pay registration fees to the government. The specific charges for registration vary in each state, as outlined in the Act or the respective State Registration Act. These charges are calculated as a percentage of the property’s saleable value. 

It is crucial to mention that both the stamp duty and the registration fee are determined based on the ‘guidance value’. The guidance value is determined by the state government and is influenced by the property’s location.

Consequences of Non-Register Properties by NRIs

Failing to comply with the registration of documents for the purchase of immovable property, which is compulsory under the Registration Act of 1908, can result in legal consequences, including:

• The document will not be recognised as legally binding, and any attempts to transfer the property based on that document may be deemed invalid.

• Without proper registration, the document will not hold weight as admissible evidence in a court of law, potentially hindering any legal actions involving the property.

• Creating an opportunity for fraudulent activities and misrepresentation. Non-registration leaves room for dishonest practises, as there is no official record available to verify the authenticity and ownership of the property.

Frequently Asked Questions (FAQs)