Owning a home is the great Indian dream! It starts young and slowly become a significant milestone of adulthood. As soon as individuals find financial stability in their careers, they start saving and searching for the perfect property. It takes a considerable time to find the quintessential home, and when you do- do not rush into the deal.
There are some crucial foremost steps to buy your home. The initial step is to fulfil all the legal formalities correctly. As per section 17 of ‘The registration of immovable properties in India,’ passed in 1908, there are some essential formalities to undertake while buying and registering the property.
1. Registering the property to your name
The first thing after finalising the property is to register it to your name. To do so, you are required to pay the stamp duty amounting to 5-7% of the property value. The stamp duty is a tax paid to the government of the state. You can buy this stamp paper online or from an authorised vendor. The preparation of the same depends on the nature of the transaction. Indian women receive a 1-2% concession on the stamp duty given that the registration of the property is under their name.
2. Tête-à-tête with the sub-registrar
To register the property under your name, you need to visit the sub-registrar office to ensure the completion of the process. It is mandatory to carry legal documentation, such as the date of certificate or embossing, classification, stamp duty, RTC, Form No. 1, Form 60 and 61 PAN. The registration fees totalling around 1% of the stamp duty is charged in the process for most cases. A witness’s signature is also required. After the registration process, the buyer becomes the owner. Ensure to collect a copy of the registration papers from the sub-registrar office as scheduled.
3. Deadline for the property registration
According to the property registration act, the property document must ideally be registered within the four months of the purchase. If the timeline for the same exceeds, then the buyer is obligated to write an apology to the sub-registrar. Depending on the delay, the sub-registrar may impose a penalty to register the documents. This fine could be ten times the original registration fees.
4. Understanding the importance of property registration papers
Property registration papers are crucial documents for a home buyer to have. The absence of the papers may lead to grave consequences. These papers are proof of your ownership. It is advisable to invest in a dispute free property and go an extra mile to ensure that. However, if the property becomes disputed under some circumstances, not having these papers poses a greater risk. There’s a high risk of losing the property and all the money invested. It could be acquired by the government at any time if needed.
5. Benefits of property registration
The registration papers indicate your ownership of the property. If you decide to resell the property in future, these papers will be needed to transfer the registry from one person to another. It makes the process hassle-free.
