Section 17 of the Registration Act, 1908 makes it mandatory to register any transaction you make towards buying an immovable property if it is priced more than INR 100. It will not be an assumption to say that you will not find a new house in India that is worth less than INR 100. So, buying the house will require you to register the property.
The registration process comes with a lot of legal complications and paperwork. This might confuse some people; however, there is no room for a mistake, as you need to register the new house by following the rules closely.
If you want to know how to do registry of house, here is a guide that will help you:
Steps to register your house
Even though the process of registering a new house requires following the legal guideline thoroughly, it is not too complicated. You can follow these below steps to complete the registration process:
Have an identity proof with yourself; you can use your PAN or Aadhar card for this purpose.
Gain knowledge about the circle rate of the place where your house is located. This is the minimum price at which your new house has to be registered. This rate can differ depending on the location. You should compare it with the market value of your new house.
Compare the two values to determine which one is higher. When you buy the non-judicial stamp papers to register the house, make sure that it is valued at whichever is higher between the value of the circle rate and the actual market rate.
Visit the office of the Sub-Registrar. You need to bring the builder or seller, or any other conducting party associated with the buying process of the house. You will also need to bring two witnesses. Do not forget to bring your identity proof, two copies of the deed with the original document, and two passport-sized photographs
Pay the registration fee; the amount of the fee is generally valued at 1% of the stamp duty. Once the fee is paid, your deed will be registered, and you will receive a receipt. Do not misplace it at any cost.
Carry the receipt when you visit the office of the Sub-Registrar to collect the sale deed. You should wait for about a week from the day of registration before you visit him or her.
Verify the sales deed by using the details of the registration, which you can find in the office of the Sub-Registrar.
This completes the registration process for your new house.
Until the registration of house property is done, you do not have any legal right on the property. If there is any dispute about the property in the future, you will need the help of the Sub-Registrar to prove that the house belongs to you. For this, the office needs to have a copy of the deed that you had earlier submitted.
Another important thing to remember is that you must register the deed within four months since its execution. If you miss the deadline, you have to pay a greater registration fee, which can be up to ten times higher. You are already investing a huge amount of money in the property, so you certainly will not want to pay a higher fee unnecessarily.
It is understandable when you want to try every possible way to lower your expenses while buying a new house. It is acceptable to negotiate the best possible deal with your builder; however, some buyers go as far as escaping the stamp duty. This will expose you to serious trouble. According to the Indian Stamps Act, 1899, not paying the stamp duty leads to high penalties or even a jail term in certain cases. The regulations vary from state to state, but the punishments are more or less the same all over India.
In case the unpaid stamp duty is less than INR 10 lakh, you will have to suffer a penalty of up to INR 50,000 or 20% of the evasion amount, whichever is higher. However, if it is more than INR 10 lakh then apart from paying the penalty, you might also have to serve a jail term up to a year.
The introduction of house registration online has made the process even simpler. You can visit the government website for property registration and fill the appropriate form. It will be verified before you can pay the fee online. Once it is completed, a receipt will be generated.
The price of property has increased significantly in India. To buy a house in a decent area, you need to consider taking a home loan. The good news is that there are many non-banking financial institutions in India, where you can get competitive rates when taking a loan to buy a new house. Home loans available at Finserv MARKETS have reasonable interest and other attractive features such as flexible repayment option, minimal documentation and long tenure up to 25 years. Borrowers can avail a loan amount pf up to Rs. 3.5 crores to purchase their dream house. Instant approval and quick loan disbursal are some of the other advantages of availing a home loan at Finserv MARKETS.
Before you apply for a home laon at Finserv MARKETS, you need to determine the amount of loan you are eligible to get. It depends on your monthly income, assets, and liabilities. Once you know how much loan you can get, compare the interest rates among different lenders to find a suitable option for you. Remember that apart from the EMI, you will also have to pay a processing fee to your lender. Home loans at Finserv MARKETS have low processing fee and no hidden charges.
Buying a new home is one of the most important things you will ever do. Hence, it is necessary to be careful about following the registration rules closely. Make sure that you are the complete owner of the house, and there is no room for any dispute.
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