Just think that you purchase a plot of 200 sq. ft. by thinking that you will construct your dream home here, you paid the price, and you thought the property was yours. Then, another person comes and constructs a new house. When you question him, he asks for proof. But you show the transaction details, but it eventually doesn’t prove that the property is yours. On the other side, that person has registration papers, stamp duty details. To save you from these kinds of fraud, registration is important.
In this blog, we will discuss about the documents, we require in the registration process. Here, we also included the step-by-step registration process. Understanding of this process and importance of these documents will make this hectic situation little bit easy.
What is plot registration?
Plot registration is the official process of documenting and recording the ownership rights, interests and details of the plot with a government authority. It establishes a legal record that proves the buyer’s ownership, provides transparency in property transactions, and protect against any disputes. This process ensures that the plot ownership is verified, protects against the risk of fraud and unauthorized claims. Plot registration is important for purchases, mortgages, and sales, providing clarity and legal protection to the owner.
Is property registration mandatory?
The main purpose behind registration is to protect the rights of the owner and provide legal recognition to the buyer of a property, especially in relation to the transfer of ownership from one person to another.
This process is important for any transaction related to property because it creates a legal record of the transaction and protects the interests of both parties. The main reason of property registration is to maintain records of the property rights.
In India, it is compulsory to register property under the Registration Act 1908. When a property is transferred through a purchase or sale, you have to go through a process of being registered to make the property transfer legally valid.
Importance of property registration
1. Prevent fraud: By registering your property, you can save yourself from any kind of fraud. As your transaction is legal, no one can deny or say that the property is not yours.
2. Legal ownership: Property registration officially makes you the owner of the property. It protects the ownership rights of the buyer.
3. Public Record: The documents of registration is available in the public domain in an effort to reduce any clash in the future on the rightful ownership. So, in future, if you face any legal issue, these public records will save you.
4. Selling becomes easier: If you sell your property in the future and it is registered, the process becomes much simpler. Buyers prefer registered properties with clear documentation because they are more trustworthy.
5. Financial flexibility: A registered property can act as a form of collateral for loans. If the property is registered, you can use the property whenever you need money, whether for business, a medical emergency, or other needs.
6. Protection from government actions: In some cases, the government may use the property for urban development or infrastructure development. Registration helps to ensure that you are fairly compensated or protected. Without registering the property, you may face problems with these legalities.
Documents required for plot registration
1. Identity proofs of seller and buyer: For the registration of the plot, both buyer and seller have to provide acceptable identity proofs such as: - PAN card, Aadhaar card, Passport, Driving license. Some other documents which are required to verify the both the parties will also require like address proof of buyer and seller, utility bills, bank statements etc.
2. Sale Deed: Sale deed is a written and legal instrument that shows the change in the ownership of the plot that has taken place between the buyer and seller. The sale deed includes many important details like: Terms and conditions of the payment, Agreed Sale price, and Plot description including: - locality, size, etc.
3. Agreement to sell: This document is prepared when the buyer and seller sign the agreement for the property sale. The agreement of sell contains all the terms and conditions of the sale like: - agreed sale price, duration of sale, payment schedule, and any other clause related to the plot sale. This document does not affect the legal transfer of the property, but this agreement is important as it contains the basis for the sale deed and confirms the terms that have been agreed upon between the parties.
4. Title Deed: A title deed acts as a legal document that shows that the seller owns this property, which he is willing to sale. This deed is required at the time of property registration. If the seller of the property is not able to show a physical and clear title deed, it may indicate that the seller is not the official owner of the property.
5. Mutation Documents: Mutation is defined as the transfer details of the property ownership in land and revenue records. It’s the buyer’s responsibility to confirm that the seller has done the mutation of the purchased property on the buyer’s name before going for the registration process.
6. Property Tax Receipts: Original tax receipts of property of the current and previous year must be available at the time of plot registration. It is important to show that no taxes are outstanding at the time of property registration. The payment of property taxes shows the cleanliness of the property records. Neglecting or avoiding to pay property taxes comes with a hefty penalty and causes more problems in the process of registration.
7. Encumbrance Certificate (EC): It is one of the important documents, as it shows that the property has no legal dues and loans. It offers a record of all the legal and financial responsibilities on the sold property. The seller can obtain the EC certificate from the Sub-Registrar’s office, and it is important to prevent the property from being mortgaged or being in any legal suit.
8. NOC (No objection Certificate): This certificate proves that there are no legal disputes present in relation to the property. This ensures that the property has no liability on itself and can be registered without any problem or complication.
9. Witness Proof: There must be two witnesses during the process of property registration. The witness will give their identification proof and the documents of property registration, which will then be verified.
Step-by-step plot registration process in Rajasthan
Step 1: Prepare or collect documents- Collect all important documents, which include the sale deed, tax receipts, address proofs, and other required certificates.
Step 2: Visit the Sub-Registrar’s office (SRO)- Now that you have collected all your documents, now visit to the Sub-Registrar’s office (SRO) in the area where your property is located. Now fill out the registration application form and submit the required documents.
Step 3: Processing of Application- In step 3, the Sub-registrar will verify all the submitted documents and process your application. At that time, you’ll need to pay the registration fees and any other applicable taxes.
Step 4: Biometric Verification- For the biometric verification both buyer and seller need to appear for biometric verification at the SRO. This step is a mandatory step to confirm the identities of the involved parties.
Step 5: Registration of documents- The sub-registrar will now review all the documents, ensure compliance, and register the sold property in the buyer’s name or the new owner. The sale deed was stamped with the official seal.
Step 6: Verification and Approval- After registration, the documents will be sent to the tehsil office for the process of verification and approval. Now, the tehsildar will confirm the details of the purchased property and will update the official records.
Step 7: Land Registry ID Generation- Now the unique Rajasthan Land Registration ID will be generated, which will link your plot to the portal of the online land registry. This step improves the security and transparency.
Step 8: Online Land Registry- After completion of this process, verify the authenticity of the property and details of ownership easily through the official online portal of Land Registry of Rajasthan.
Other documents you should see at the time of purchasing a plot.
1. Khata Certificate: This document serves as proof that the plot has an entry in the local municipal records. Many banks ask for this document before granting a home loan. This certificate is also required, if you want to transfer the ownership of the plot in future.
2. General power of Attorney: This document will help to prove whether the seller of the property is the authorised person to sale the property.
3. Allotment Letter: Allotment letter is considered as an important document required to get a home loan. This document contains the property’s description and amount details. An allotment letter is issued to the first owner only, and other owners can ask for a copy of the original letter from the seller.
4. Possession Letter: Buyer should take a possession letter from the developer. The letter sets the date on which possession will be granted to the buyer. Sometimes, original copies are required to get a home loan.
5. Payment proof of stamp duty and registration fee: It is important to have stamp duty charges and registration fees, which have to be paid before the property is registered. Stamp duty is a kind of tax that is levied on property transactions, as the % varying from one state to another. The registration fee is generally 1% of the market value of the property or the sold price, whichever is higher. During registration, the original challans/ receipt of these charges has to be provided.
Happy Buying. Happy Investing