S2NRI

Purchasing a piece of land or apartment/flat requires huge investment. And this investment comprises of hard-earned money. A mistake can push an innocent in the trap of land-mafia or fraudulent.

This blog can work to guide the aspiring property investors for making a fair deal. Let’s start with property registration description.

Registration Act

The process of registration is executed under the Registration Act 1908 in India. It was formulated to:

• Record authentic details of any immovable property in which the buyer is interested.
• Maintain proper records of the property & related transactions.

The government has delegated registering rights district-wise. It provides more convenience & legitimacy to the governance.

The registration process has three main levels. Each buyer should walk through these levels to orient land/property registration. These are:

Levels of Registration

Mandatory level: The Registration Act mandates:

• Registering documents of the immovable property.
• Registering the WILL (It’s not compulsory but doing so credits extra-ordinary comfort & convenience in its maintenance.)

Timeframe: Its second level points to the time-period within which documents must be submitted for processing.  

• The related papers of the property must be registered within 4 months. This duration begins since the day the documents of the property are submitted.
• In case its owner is offshore, the registration span will begin from the day of its arrival in the country. It will last till 4 months from that day.

Confused over where should NRIs or locals go for submitting the documents? Let’s catch where and in whose presence property’s papers must be registered.

• At the office of sub-registrar situated nearby the property’s location.
• Both, buyer & seller, & their representatives/Power of Attorney holders must be present there. Both parties must sign the papers in the very presence of the registrar.
• Even, immovable property is transferred in the very presence of the registrar. For transferring, seller and buyer should sign, put thumb impressions on the papers and attest passport size photographs in his presence.

Final Registry: Once all formalities are conducted, the registrar verifies and cross-checks all the documents. Once finding all papers & detail authentic & registration fee paid, he:

• Enter the records in the government’s book under the banner ‘Registered’. Then, he attests them. This way the Pan Endorsement procedure gets completed.
• The documents get effective from the date of endorsement or any specified date but not from the date of registration.

Checklist of property documents needed:

• Title deed attested by the Sub-Registrar (It identifies the real owner of the property.)
• Completion Certificate
• Map
• Sales deed
• Approved copy of plan from the local authority (if purchasing vacant land)
• Agreement of sale (registered)
• Cross-check the papers of the property if it belongs to the second owner.
• Utilities bills (cleared or paid)
• Khata/ Patta
• Encumbrance certificate
• NOC if the property is resold.

Precautions to take while purchasing a flat/ vacant land:

• Determine the reputation of the builder/ realtor if he is efficient in property management or not. If the realtor fails to approve loan from the banks, it certifies the seller is not so trustworthy.
• Check all the documents carefully and thoroughly. They should be issued by a certified lawyer. Cross-check them with your own lawyer.
• Check if the building plan is approved by the Municipal authority and AE or not.
• Check the project delivery if it is on time. If it delays, the realtor can impose the inflated prices of products upon the buyer.
• Take every detail of housing project in writing. Verbal promises usually end in disputes. So, avoid such practice.
• Take completion certificate issued by the competent authority before possession.
• Read the papers of Title carefully. The attorney holder can change it for fooling the ignorant.
• Avoid payment in cash since payment through cheque can be repatriated easily (if required).