In today’s videos, we’ll discuss some of the main points on the entire registration process of a property in India. Although this process is quite complex, it may require a lot of time and effort from the registry office. So let’s start registering property in India with Propertywala.
Here,
- The first step is to choose the property and look for all the details in the property. Negotiate with the seller. Pay 10% booking amount. Then we have an agreement to sell. This means the buyer will pay the seller according to the agreed sale price. In this way, the seller will sign a deed of sale as per the discussed amount in the agreement to sell.
- Buyers should check that there are no liens or other encumbrances on the property before they make an offer.
- Calculate Stamp Duty. Stamp Duty is the tax levied on the transfer of real property in the state. The stamp duty calculated varies from state to state, and it’s calculated on either the circle rate or the market rate, whichever is higher. It’s generally 3-10% of the property value and 1% is the registration charge.
- Now, we’ll discuss the method of payment for stamp duty-
So, there are 3 methods to pay a stamp duty which are given below:
Method 1 – Non-Judicial stamp paper (picture). If stamp duty is 1 lakh, buy papers worth Rs 1 lakh. The sale deed will be printed on stamp paper.
Method 2 – Franking method – Print the sale deed on plain paper. Pay stamp duty in the cheque, cash, online, or dd draft. Then the bank attests to the sale deed.
Method 3 – E-Stamping (picture) – it will mention all details – generated online – Go to Stock holding corporation of India – www.shcilestamp.com. This will be paid at authorized centers only like. Collect e-stamp then.
Now, buyers should also be aware of the Stamp duty calculation. They should also know that this tax is payable when they register their property.
First, you must calculate the property’s value.
For example, if the actual value is Rs. 40 lakhs and the circle rate is Rs. 50 lakhs, then you have to pay stamp duty at the highest rate out of the two. Hence, in this example, because the circle rate is greater than the actual rate then you have to pay a stamp duty of Rs. 50 lakhs.
And in another case, let’s assume that you bought a property in India with a market value of Rs 90 lakhs and the circle rate was Rs 80 lakhs. In this case, you would have to pay a stamp duty of Rs 90 lakhs. Therefore, you can calculate your stamp duty. In addition, you can also estimate stamp duty online because it varies differently and is higher in large cities and towns than in small towns or cities.
- The next thing is a draft and print sale deed or conveyance deed, or gift deed. It mentions all details like name, address, age of both the buyer and seller, etc. It also has details about payment like it is done through cheque, cash, or any other method. After that, you have to print the sale deed on stamp paper and then sign each page of the sale deed. Two witnesses also have to sign the last page of the sale deed.
- After drafting and printing the sale deed, you must register it at the sub-registrar office. The office should be located in a fixed zone of your property’s locality. To schedule an appointment online or to obtain a token number, contact the sub-registrar office by phone or in writing. Both buyer and seller should attend the registration; witnesses should be present as well. If either of them cannot attend, they must appoint someone to act on their behalf with power of attorney. All parties should bring documents such as an Aadhaar card, an identity document, and three photographs that will be attached to the sale deed. Then signatures will be taken in the presence of the sub-registrar; fingerprints will also be taken for security purposes.
- After that, you have to collect the registered sale deed. The deed can be collected within 15-20 days. If you took a bank loan, the bank will collect the original deed.
- Now that the registration process is over and the property transfer is complete, you need to change the name in the land records. This process is called a mutation. If your property is located in a rural area or outside municipal limits, you will have to change the name in land records. The mutation is named differently in different states. For example Jamabandi in Haryana, Punjab, and Rajasthan; Khatauni in Uttar Pradesh; 7/12 in Gujarat and Maharashtra; and Khatian in Orissa, West Bengal, and Bihar. After registering your property in your name, the whole process of registration of your property is done.
Therefore, this is the process to register a property.