If you fail to register the property, it will be assumed that the former owner or the developer is the legal and rightful owner. A property deal isn’t considered complete unless the sale deed is properly stamped and registered, according to the law. The primary goal of registration is to establish who owns the flat/land.
Property Registration laws
The registration of papers in India is governed by the Indian Registration Act of 1908. This law mandates the registration of numerous documents in order to ensure evidence preservation, fraud prevention, and title assurance.
What is property Registration?
When a property is transferred from one person to another, the transaction must be formalized by registration at the sub registrar’s office after certain fees, such as stamp duty, have been paid. A property registry is a name for this procedure. All transactions involving the sale of immovable property for more than Rs. 100 must be registered under Section 17 of the Registration Act, 1908. This practically means that all immovable property sales must be recorded, as no immovable property can be purchased for less than Rs. 100. The same rule applies to gifts of property, as well. Despite the fact that the donor receives no monetary compensation in exchange for the property, the gift deed must be registered in order to be legally effective. Additionally, all lease transactions lasting longer than 12 months must be registered.
Where to register documents?
All documents relating to immovable property must be brought for registration in the Sub Registrar’s Office within whose sub-district the whole or part of the property is located, according to section 28 of this Act.
Procedure for property registration
Property documents that need to be registered should be sent to the Sub-Registrar of Assurances’ office in the jurisdiction where the property is being transferred. For the documentation to be registered, the seller’s and buyer’s authorized signatories, as well as two witnesses, must be present.
The property card, along with the original documents and proof of stamp duty payment, must be presented to the sub-registrar. Before registering the papers, the sub-registrar will use the stamp duty ready reckoner to see if enough stamp duty has been paid for the property. If the stamp duty is insufficient, the registrar will refuse to register the documents.
Consequences of non-registration under the Registration Act, 1908
It’s worth mentioning that proving ownership of certain property may be difficult unless your name appears in government documents as the owner. As a result, the buyer is required to register the property. Furthermore, because unregistered properties have no legal status, even if the owner is in possession of them, they risk being lost. If the government were to buy this land at some point in the future for an infrastructure project, the owner would have no right to compensation.