A Step-By-Step Guide To Register Your Property
Without having all the documents in place, the process of buying your home is not complete. Here’s how to register it to become the legal owner of your home:
What is stamp duty?
Stamp duty is a form of tax levied on any transaction by which a person creates or extinguishes any right or liability. Sale deeds, gift deeds, partition deeds, conveyance deeds, power of attorneys and lease deeds are some of the documents on which stamp duty is payable. In real estate, stamp duty is a major component of the costs involved in the registration of property.
The Indian Stamp Act and the Registration Act govern the duty of stamping. Stamp duty and registration fees are to be paid by the purchaser to the state governments while transferring ownership of the property. As a state tax, the rate varies from state to state. In most countries, stamp duty charges and registration fees shall be paid as a percentage of the total value of the transaction.
Usually, states have higher stamp duty charges for urban areas and offer discounts to women home buyers to encourage their ownership of family assets.
This Is What Happens When You Evade Stamp Duty
Registration of property documents
Once the stamp duty has been paid, the document should be registered under the Indian Registration Act. This shall be done within the jurisdiction of the Sub-Registrar under whose local jurisdiction the property is situated. The basic purpose of document registration is to record the execution of the document. In most countries, the registration fee is approximately one per cent of the stamp duty. Unless the deeds are entered in the government records in the name of the purchaser, the purchaser shall not become the official owner of the house. An original copy of the registration shall be kept with the Registrar, which may be referred to in the event of a dispute.
Property registration procedure
Step 1: Estimate the value of your property based on the number of circles in your area.
Step 2: You’ve got to compare the circle rate with the actual price you paid. The higher of the above two values would be applicable to the payment of the stamp duty.
Step 3: You are now going to have to purchase non-judicial stamp papers of that value which have arrived after the calculation. You can purchase stamp papers in person or online.
Step 4: You can buy these papers from licensed stamp vendors, while e-stamps can be purchased online from www.shcilestamp.com. Stamp duty may be paid through the Stamp Collector or proof must be provided if it has Step 5: Now, you’ve got to get the deed prepared and typed on the stamp paper. The subject matter varies depending on the nature of the transaction, which could include sale, lease, mortgage, power of attorney, etc.
Step 6: The parties to the transaction must now approach the Sub-Registrar’s Office in order to have the document registered, accompanied by two witnesses. Each person involved in the process should have their respective photographs, identification documents, etc. An original copy of the document, along with two photocopies of the same, should also be included.
Step 7: After the sale has been registered, you will receive a receipt. About two-seven days after that, one can go back to the Sub-Registrar’s office to collect the sale bill.
Step 8: Once the original sales act has been registered, you can also get the same validation by using the registry details and the date from the registry office.