Property registration is an essential part of the home buying process that involves paperwork and legalities that might be puzzling if you are a first-time homebuyer. Under section 17 of the Registration Act of 1908, it is mandatory to get your property registered. For a hassle-free home buying process, it is imperative to prepare in advance before getting your property registered.
Here are some essential factors that one must keep in mind before registering the property:
Builders Credibility: Before registering the property, you must check the builder’s credibility first. To check the authenticity of the developer the buyer must go through the previous track records of the builder and the completion status of its ongoing and upcoming projects. Conducting primary research can give you better clarity on the property and the builders reputation in the market.
Obligatory Documents: Registering a property requires a list of documents that are mandatory at the time of registry. These include:
1)Sale Deed is a legal document describing the transfer of ownership from the seller to a purchaser.
2)The tax receipts of the latest property tax paid.
3)Statements from the banks regarding outstanding loans and the latest electricity bills.
4)Encumbrance certificate ensures the complete ownership of the property without any liabilities.
5)The sanctioned building plan and the occupancy certificate from the builder
6) A power of attorney if any
Stamp Duty and Registration Fees: At the time of registering the Sale Deed the buyer has to pay the stamp duty and registration charges to the government that varies from state to state. Stamp duty is calculated on the market value or the agreement value of the property whichever is higher. The property registration fee is payable above the stamp duty. The fee is applicable for properties that have a price above Rs 30,000 and is calculated at 1% of the agreed property value or the market value whichever is lower.
Witnesses: At the time of registration of a property requires the signature of two witnesses for the completion of the property registration process. Make sure before you reach the office of sub-registrar for your property registration, you have two witnesses with you.
Demand Draft: Always make sure you have demand drafts along with the accurate amount for the payment of stamp duty and registration charges that also varies from state to state.
Property registration is an integral part of the home buying process and to ensure you make the right decision it is important to keep yourself abreast with the prerequisites for registering your property.