The Property Banks Buyers Guide to India
Procedure 1.
A search has to be taken in the office of Sub-Registrar of Assurance
to verify whether there is any encumbrance
Time to complete: 5 days
Cost to complete: Rs. 10,000
Comment: The purchaser should conduct a search of the property in
the Registry and the Revenue Office, noting the location details of
the property and the time period to be checked. While investigating
the title it should be verified (1) that the legal ownership
document is in the name of the Owner, issued by the Revenue Record
Department under the Seal of the Tahsildar, (2) that on the date of
purchase the title of the owner for the preceding 30 years
(preferably) shows no mortgage or other encumbrance as still
existing on the date of purchase, (3) the property is transferable
and heritable, (4) the transferor is competent and/or authorized to
transfer the property, (5) the transferee is qualified to be a
transferee, (6) the object or consideration for the transfer is
lawful, (7) the transfer has been made and completed in the manner
prescribed by law, (8) the property being sold is free of
restrictions for sale under the Urban Land (Ceiling & Regulation)
Act, 1976 and a Clearance Certificate for the property has been
issued by the U.L.C. (Urban Land Ceiling) Authorities. Also, all
papers with regard to payment of taxes, the electricity bills and
water bills need to be checked.
If the seller is a Company incorporated under the provisions of the
Companies Act, 1956 then it is advisable to take search in the
office of the Registrar of Companies to verify whether there is any
charge on the property registered under the provisions of Section
125 of the Companies Act, 1956.
Procedure 2.
Preparation and execution of Agreement and Memorandum at the Stamp
Duty Office
Time to complete: 7 days
Cost to complete: Rs. 100
Comment: The property is not handed over at this stage.
Procedure 3.
The Final Sale Deed is prepared by the purchaser or his advocate
Time to complete: 7 days
Cost to complete: 1% of property value
Comment: Normally, the Sale Deed and Transfer Deed are drafted by
Lawyer and the print out of the same is taken out on Green paper on
which the Adhesive stamp for stamp duty is to be affixed.
Procedure 4.
Get the Final Sale Deed stamped, executed and registered in the
presence of two witnesses
Time to complete: 2 days
Cost to complete: 5% of the market value of the property (stamp
duty)
Comment: In case the agreement for sale is already stamped as a
conveyance and registered, stamp duty and registration charges need
not be paid at the prescribed rates and only nominal charges need be
paid.
Procedure 5.
Submit documents with the office of the Sub Registrar of Assurances
within whose jurisdiction the property is located
Time to complete: 1 day
Cost to complete: 1% of market value of the property (registration
fee) up to Rs. 30,000 maximum
Comment: The Documents are submitted with the office of the Sub
Registrar of Assurances within whose jurisdiction the property is
located. The respective authorized signatories of the Seller and
Purchaser are required to be present along with two witnesses
The documents are submitted to the Reader of the Sub-Registrar,
Assurances for scrutiny. After scrutiny, the Reader indicates the
Registration fee required, which is 1% of the transaction value or
Rs. 30,000/- whichever is less on the document itself. The due
registration fee is to be deposited with the Cashier against a
receipt. After depositing the fees, the documents are required to be
presented before the Sub-Registrar by the parties in accordance with
Section 32 of the Registration Act, 1908. Normally, as per practice
the Seller hands over the peaceful vacant and physical possession of
the property to the Buyer simultaneous to the Deed being presented
for Registration.
Upon payment of the required registration fees and computer service
charges in cash, as per the receipt, the document is returned within
30 minutes of getting the receipt.
The documentation shall include:
Documents which are required to be presented are :
1. Document required to be registered (in duplicate)
2. Two Passport size photographs of the authorized signatories of
both parties.
3. Photo -identification of each party and witnesses i.e. Voters'
Identity Card, Passport, identity Card issued by Govt. of India,
Semi Govt. and Autonomous bodies or identification by a Gazette
Officer.
4. Certified True copy of the Resolution of the Board of Directors'
of both Seller and Purchaser.
5. Certified True copies of Certificate of incorporation of both
Seller and Purchaser.
Procedure 6. Apply to Municipality for mutation of the title of the
property
Time to complete: 30 - 40 days
Cost to complete: INR 400-5000
Comment: After receipt of the registered title deed, an application
is made by the Purchaser to the Municipal Authority seeking mutation
of the title of the property in its favour. The authorised signatory
has to submit the duly signed application along with affidavit,
indemnity bond, and a certified/notarised copy of the registered
title deed.
After the assessment of the request for mutation, the Municipal
Authority settles the rateable value for levying tax on property and
then issues a letter of mutation in favour of the purchaser
certifying the fact that the property has since been mutated in the
Purchaser's name.