REGISTRATION OF PROPERTY IN INDIA
When a valid sale of a property takes place, it comes with certain compliances. For a valid sale of property, it must come with a valid sale deed or agreement and in order to give such sale deed a valid essence, it must be registered as per the Registrations Act, 1908. The registration of sale and purchase of immovable property is mandatory and ensures conservation of evidence, prevention of fraud and assurance of title. As per the Section 17 of the Registrations Act, 1908, all transactions involving sale of an immovable property for a value exceeding Rs. 100, should be registered. Also, all transactions of immovable property in form of gift or in form of lease for a period exceeding 12 months are also mandatorily required to be registered.
The property documents that are needed to be registered must be filed before the Registrar or the Sub-Registrar within whose jurisdiction the property is situated. The authorized signatories for the seller and the purchaser have to be present along with two witnesses, for the purpose of registration. In case a Company is party to the agreement, the person representing such Company must carry adequate documents, like power of attorney/letter of authority, along with copy of the resolution of the Board of Directors of such Company, authorizing him to carry out such registration. Before registration of the documents, the sub-registrar shall verify whether adequate stamp duty has been paid for the property as per the Indian Stamp Act of 1899 respectively.
The documents that have to be registered mandatorily must be presented before the registrar within four months from date of their execution, along with the requisite fee. In case such time limit is expired, the application for condonation of the delay can be made to the sub-registrar within next four months. The Registrar may agree to register such documents, on payment of fine which may be up to 10 times the original registration fee. Failure to register the purchase or sale agreement of the property may attract certain risks and question on its validity. Such documents cannot be admitted as evidence in any Court of law. The registration has to be well compliant to the property laws and/or the real estate laws of the country.