Investing in properties is one of the most significant events of your life. However, if you fail to register your property, your may lose the legal right to claim your ownership to such property. Registration of property is crucial to ensure your legal rights over the property, and to avoid any real estate disputes that may arise in the future. By registering, you ensure that you can prove your ownership and possession over the property. Property registration in India is governed under Section 17 of the Registration Act, 1908 read with the Transfer of Property Act, 1882. Both the Acts provide guidance and procedures regarding how to register properties in India.
Property registration involves verification of the property title, estimation of property value from local circle rates, preparation of stamp papers, development of the sale deed, payment of stamp duty and registration fees, and finally approaching the sub-registrar for registration of the property. For stamp duty purposes, the circle rate of properties is compared to the actual price paid for the proeprty, and the higher of the two is considered to be applicable for stamp duty purposes. Registration charges for properties vary from one state to another, and is calculated as a percentage of the value of the property. Stamp duty is also calculated as a percentage of the saleable value of the property. For most States in India, registration of properties cost around 1% of the saleable value, while stamp duties may range between 5% to 6%, or even higher for urban areas.
Property registration in India used to be a tedious and difficult process. However, with the coming into effect of electronic registration, property title registration is comparatively easier and can also be done by downloading forms from the local sub-registrar’s website. One of the major benefits with online processes is the ease of transactions and tracking of progress.
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