Buying a house does not end with signing the cheque. To legally establish ownership, the property must be registered. The process takes place in the Sub-Registrar office of the relevant district where the property is in and is undertaken as per the provisions of the Registration Act, 1908.
Why property registration is important
Property registration is a mandatory legal process for most property transactions. The process creates a public record of the transaction and provides legal backing to the buyer’s ownership rights.Registration applies to a range of documents depending on the type of property transfer, including sale deeds, gift deeds, share certificates, etc. However, laws regarding charges levied during the process differ among states. Let us understand the requirements from the perspective of Delhi NCT.
Sale deed
For the registration of a sale deed, stamp duty is levied at 4 per cent of the transaction value if the buyer (vendee) is a woman and 6 per cent if the buyer is a man. In addition, a registration fee of 1 per cent of the total value of the sale deed is payable, along with a pasting charge of Rs 100.At the time of registration, both the seller (vendor) and buyer must be present at the Sub-Registrar office, with valid identity documents, such as a passport, EPIC card (voter ID), driving licence or PAN card. They must also be accompanied by two witnesses, each carrying valid proof of identity.
Will
A will is a legal document through which a person, known as the testator, specifies how their property is to be distributed after their death.While registration of a will is optional, many people choose to register it to strengthen evidence of their ownership and reduce any likelihood of disputes. In such a case, a registration fee of Rs 600 is payable, while no stamp duty is charged.During registration, the testator must appear in person along with two witnesses and should produce the conveyance deed or other ownership document as proof of title to the property.For the conversion of a leasehold property into a freehold property, stamp duty is payable at the same rates as a sale deed. Furthermore, a registration fee of 1 per cent of the value of the conveyance, along with a Rs 100 pasting charge, is payable.
Gift deed
In the case of gift deeds, the property’s value must be determined for calculating stamp duty and registration charges.Once the valuation is completed, stamp duty and transfer duty are payable at 4 per cent if the recipient (donee) is a woman and 6 per cent if the recipient is a man. In addition, a registration fee of 1 per cent of the property’s value, along with a Rs 100 pasting charge, is payable at the time of registration.
Share certificates
Issued by the cooperative housing societies, represent a member’s shareholding and membership in the society, which is also linked to the right to occupy a particular flat.For their registration, stamp duty is levied at the rate of Rs 1 for every Rs 1,000 value of the shares, and any fraction is rounded up.If the stamp duty exceeds Rs 500, payment must be made through a demand draft or pay order.
Documents generally required
While requirements may vary depending on the nature of the transaction, parties are generally required to carry:
- Valid identity proof of both parties.
- Property ownership documents.
- Two witnesses with valid identity proof.
- Applicable stamp duty and registration fee receipts.
Completing the registration process ensures that ownership is legally recognised and protects the buyer’s rights against future disputes.
