June 11, 2013

Property Investment-Do you know these registration facts?

Nowadays it is a dream for all to own a property. Returns are good and price as of now inching northward. But can you know these basic things about property registration? I think current owner of property also don’t know few of these below mentioned facts. Let us look at them.

I am bifurcating those important points as below.

1) Document Registration:-

  • You can acquire property by any means of following ways.
  1. By purchasing it
  2. By inheritance of ancestral property
  3. Through will
  4. Through gifts, trust or settlement deeds
  5. Grant by Govt or Court
  • If you are acquiring property by inheritance then it is not necessary to register it. After the death of property owner, his/her legal heirs may get khata transferred by submitting  death certificate and details of property held in his/her name.
  • By registration of immovable property will become permanent public record. This is like notice to general public. Also according to transfer of property act, right, interest or title must be acquired only if the the deed is registered.
  • If such deed is not registered then the purchase is called invalid.
  • Document executed (signed) can be registered within four months of time.
  • You can withdraw the registration of document also but before completion of registration by written application of the person who submitted for registration.
  • person above 18 years are allowed to sign as a witness and not the party to the document may sign as witness.
  • Usually genuineness of the witness are obtained without which registration will not complete.
  • Without personal appearance you can register it only in case of Mortgage deed executed under improvement loans, certificate of sale issued by revenue court.
  • You can not register the property by buyer’s general power of attorney. Seller must have Special Power of attorney to execute the sale.
  • When their are two or more heirs, any one or two be made full owners by others by executing the document called “Release”. This is either with consideration of amount or without.
  • In case of will, it is not necessary to register. But it is always advisable to register it. In case of loss of will document then you can get the same by applying with register office.
  • Their is no stamp duty to register the will, but you need to pay only registration fee.
  • Below are the liabilities and rights of seller before sale proceed.
  1. To inform the defects in the property.
  2. To provide the records of right.
  3. To execute sale deed.
  4. To pay the liabilities on the property.
  5. To get profits.
  • Liabilities and rights of buyer before sale proceed are payment of consideration and right is, encumbrance on consideration already paid.
  • Liabilities and right of seller after the completion of sale
  1. To handover possession 
  2. To handover the all documents related to property.
  3. If their is any due from buyer then encumbrance the same.
  • Liabilities and right of buyer after the completion of sale
  1. Liability on accidental or loss to the property.
  2. Pay the taxes due after taking the property possession.
  • Eventhough above are the liabilities and rights of buyer, but still it is better to consider the following points before going ahead for buying.
  1. Verify original documents.
  2. Verify how property owner acquired the property.
  3.  Verify the encumbrance certificate for a minimum period of 15 years from the register office. Encumbrance certificate is a record showing registered transactions pertaining to the property. 
  4. When their are no transactions to show for last 15 years then Nil Encumbrance certificate will be issued.
  5. Verify with concerned court about the litigation pending with particular property.
  6. Verify whether seller of property is a real owner or power of attorney. If power of attorney then verify the same with principal whether such power of attorney is genuine and still in force or not.
  7. Verify whether such transactions are apposed to public policy. In that case you can’t purchase the property.
  8. If the property belong to SC/ST then verify whether the transaction is according to the rule and whether the permission of the Govt. is obtained for transfer.

How to obtain the Certified copy of registered document?

Any person may get the certified copy of registered document related to immovable property. But in case of will only testator will be eligible to receive the copy. But after his death any person may obtain by submitting the death certificate of testator.

What are the points you need to note before registration of document?

  • Meet registering officer directly for your any concern. Never depend on any middlemen.
  • Pay the required fee directly to registering office and get the receipt of the same.
  • Pay the stamp duty according to the market value.
  • Purchase stamp papers from licensed stamp vendors only.
  • Verify whether date of delivery of the registered deed is written on the receipt. Keep the receipt safely. Never handover this receipt to your middlemen.
  • Never go for registration without necessary records.
  • Usually fee for drafting and registration are prescribed. Hence pay accordingly and get the receipt of the same.
  • Contact directly to higher authorities for any of your doubts.
  • Obtain registered deed either personally or through registered post. Never depend on middlemen for this.
  • Finally and important point is, note the true valuation of property. Undervaluation is an offence.

2) Flat/Apartment:-

Do you know the difference between building, apartment and flat?

As per law, building is a structure with four or more apartments. Whereas apartment is an independent dwelling unit of one or more rooms or part of building with one or more stories providing access to place the common usage and road. Flat is an independent unit of building for use of residence.

Conditions to purchase a flat-Developer of flat must register an agreement before accepting advance of deposit. Such advance shall not exceed 20% of agreed value.  Rights of flat/apartment can be acquired in the same way as of any other sale transactions. But a purchased must register the sale deed in sub registrar. buyer of flats/apartments may note following small difference in transfer of flat/apartment as compared to that of transfer of site, house. Ownership of flat/apartment comprises of the following rights namely,-undivided interest in land, Carpet area of flat/apartment and Proportionate share in common area. Buyer can become absolute owner of flat/apartment after sale of all the above three rights together describing in sale deed and registered. You can’t claim ownership of flat buy only describing about undivided interest in the sale deed.

Caution to be taken before purchasing flat/apartments.

  • Agreement to sell the property by promoter and sale deed both must be registered.
  • Necessary permission approval by authorities is a must.
  • Check whether Promoter/Seller have the right to sell.
  • Check for validity of date if sale is through power of attorney.
  • Flat/Apartments who violated the permission must not be purchased.
  • Verify for occupancy certificate.

Hope above lengthy points have given you few interesting aspects which you need to consider before going ahead to purchase property.

Note:-I prepared this post after verifying the Karnataka State laws. But in my view these points holds good throught India with minor changes.

 

 

 

 

6 Comments

  1. We purchased a land in 2011 from one person. Now other person came and arguing that this land belongs to my father in 1983. Now he was expired. so we are the legal heirs. we have the right on property . Now what can we do. How can we defend the case.

    Reply
    • Akula-I can’t explain the whole idea here. Better you be in touch with your lawyer.

      Reply
  2. My father has purchased a property on notary, later we came to know that the property owner died, from whom our seller purchase and then sell us on notary . In that case, can we register our property without presence of seller?

    Reply
  3. Iam going to buy a property.the doc is in sellers name. But it is his father prop which was divided between sons. Now is there any way to get sign from seller’s daughter, who cant come in person for docu regist.

    Reply
    • Karthik-That you have to check whether the issue is resolved or not.

      Reply

Submit a Comment

Your email address will not be published. Required fields are marked *

two + twelve =

Share This