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 ₹100. Therefore, purchasing a house always requires registration of the property at the Sub-Registrar's office. The house registration process comes with a lot of legal complications and paperwork. While it might sometimes be confusing, there is no room for mistakes as you must register the new house while strictly adhering to the prevailing rules and regulations.
Even though the process of registering a new house requires you to follow the legal guidelines thoroughly, it is not too complicated. You can follow the below-mentioned steps to complete the registration process of new house:
Step 1: Have an identity proof; you can use your PAN or Aadhaar card for this purpose.
Step 2: Gain knowledge about the circle rate of the area 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.
Step 3: 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 of the higher value between the value of the circle rate and the actual market rate.
Step 4: Find out who is the Collector of Stamps in the area where your new house is located. You have to pay the Property Registration Fee and Stamp Duty Charge to them and ask your attorney to type the deed on the stamp papers.
Step 5: 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.
Step 6: 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.
Step 7: 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 them.
Step 8: Verify the sale deed using the details of the registration, which you can find at the office of the Sub-Registrar. This completes the registration process for your new house.
Until the registration of the property is completed, you do not have any legal right over the property. If there is any dispute about the property in the future, you will need the help of the Sub-Registrar to prove your ownership of the house. For this, the office needs to have a copy of the deed that you had submitted earlier.
Another important thing to remember is that you must register the deed within four months from its execution. If you miss the deadline, you have to pay a higher registration fee, which may be up to ten times the original amount. You are already investing a huge amount of money in the property, so you certainly would not want to pay a higher fee unnecessarily.
You should try every possible way to lower your expenses while buying a new house. You should always negotiate the best possible deal with your builder; however, some buyers go as far as escaping the stamp duty. This might get you in legal 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 ₹10 lakh, you will have to suffer a penalty of up to ₹50,000 or 20% of the evasion amount, whichever is higher. However, if it is more than ₹10 lakh, then apart from paying the penalty, you might also have to serve a jail term of up to a year.
Real estate prices have increased significantly in India. To buy a house in a decent locality, you might consider taking a house loan. The good news is that there are many banks and NBFCs that are willing to offer home loans at competitive interest rates. You can avail house loans at Bajaj Markets at reasonable house loan interest rates and also get many other attractive features such as flexible repayment options, minimal documentation, and long repayment tenures of up to 25 years. Borrowers can avail a loan amount of up to ₹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 Bajaj Markets.
Before you apply for a home loan, you need to determine if you are eligible for a home loan. It depends on your monthly income, your credit score, and your 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 Bajaj Markets have low processing fees and no hidden charges.