Investment in property requires a cautious approach. An important part of the procedure to follow (while buying a property) is its registration. It is good to be aware of the registration process in great detail and accuracy.
For example, if you are investing in new projects in Koramangala, it is the Department of Stamps & Registration of the Karnataka Government, which will handle the complete document registration process. The same authority will issue you the certificate of registration too.
We discuss steps to be followed focusing on factors like when, why, how, and a checklist required for registration of the property.
When should you apply for registration of the property?
At the time of transfer of ownership of an immovable property, you need to apply for registering the property documents with the concerned authority. The scope of transfer of ownership rights includes gift deed of immovable property, lease, transfer of property in consideration, besides buying and selling contract of the property. In other words, if you are investing in one of the existing projects in Koramangala, you will need to register the document.
Is there a time limit for registering the property?
Why you need to register the property is for legal validation in owner’s name. Therefore, it is important to register the documents immediately, so that you are the legally recognised owner of the property at the earliest.
Officially, you have a window of four months from the date when you sign the property papers. You have an option to register it after four months too, but with a penalty. The penalty amount is hefty, more than 10 times the registration fee to be paid. However, this extension window (of another four months) is subject to permission of the District Registrar. After eight months there is no further scope.
Procedure for registering the property
You are required to publish the exact value of the property on a stamp paper. You can buy it from licensed stamp vendor shops. Make sure the paper carries details of the vendor like address, signature, along with a treasury seal.
You can apply for registration in the sub-registrar office in the district location of the property purchased.
Charges while filing for property registration
You need to pay the stamp duty at time of registration. There is also a registration fee attached. The usual rate of stamp duty is 5% of the total value of the property plus taxes. Registration fee is 1%.
You need to have the following documents in order for verification purposes:
- Original property papers
- Building plan approval
- Proof of seller acquisition of the property
- Encumbrance certificate of the property
- Proof of no litigation on the property
- NOC from revenue offices and municipal authorities
- Proof of validation of the property as per Public Policy under section 22 A of the registration act of 1908
- Proof of government permission on land on which the property is constructed
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