Property Registration Agreement
Property Registration Agreement
(immovable) as defined in Section 2(6) of Registration Act, 1908 includes, “land, buildings, hereditary allowances, rights to ways, lights, ferries, fisheries or any other benefit to arise out of land, and things attached to the earth or permanently fastened to anything which is attached to the earth,
Whenever a person acquires a property registration agreement be it through purchase, exchange or gift, he can claim a title over that property only when he has registered it with the Registrar’s office. Items mentioned under Section 17 of the Registration Act, 1908 are required to be registered compulsorily.
Why property registration agreement is important can be understood through the following five pointers:
- Creates a legal right of the owner on his property,
- Helps settle any legal disputes that may arise,
- Proper maintenance of public record,
- Reduces risk of fraud,
- Un-RP cannot serve the purpose of collateral for banks while taking loans.
Usually, buyers who acquire many properties avoid ROP as they have to sell the properties ahead. But unless they get it registered, the property remains in the name of the Builder and he can claim legal rights over it.
Thus, it is a very risky task and rightly, property should be registered as soon as the sale is confirmed.
Procedure Of Property Registration Agreement
For ROP, stamp duty which is usually 5{06122e3a69f2011a565f88e0aeb17786618f68e9df77764f2353ddee6b5145e9} of consideration value and registration fees which is 1{06122e3a69f2011a565f88e0aeb17786618f68e9df77764f2353ddee6b5145e9} of the market value of the property or Rs. 30,000/-, whichever is less is paid. Stamp Duty is the amount paid to the State Government whenever a property is transferred.
A property must be registered within four months of sale. If it is registered later than that, a reason for the same has to be provided and a penalty is required to be paid which is usually 10 times the registration fees.
Since land registration comes under state list, every state has a different rate of stamp duty and registration fee, but the concept of registration is the same. Now, let us take an example of Property Registration Agreement of a land in Mumbai under Maharashtra Registrar’s Office.
The procedure of payment of stamp duty and registration fee is online. Maharashtra has chosen IDBI Bank as its Collecting Centre.
So, For Registration:-
Step 1: Visit www.idbi.com
Step2: Click on Stamp Duty Registration fees.
An E-SBTR PAYMENT INPUT FORM shall open up to you which you need to fill-up.
Step 3: Fill-up the form.
- For Type of Receipt, select E- SECURED BANK AND TRANSFER RECEIPT
- Mode of payment: Over the Counter
- Type of instrument: Options available are Demand Draft, Cheque, Cash, Cheque No., etc.
- Fill-up the price of property registration agreement and stamp duty payable. Stamp duty is 5{06122e3a69f2011a565f88e0aeb17786618f68e9df77764f2353ddee6b5145e9} of consideration. So, if you are buying a property which is worth Rs. 50,00,000, your stamp duty will be Rs.2,50,000.
- Registration Fees is 30,000.
- Fill up the Instrument amount, Instrument date, Cheque no., etc. Details.
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Step 4: On submitting the above form, you’ll be taken to another page asking for further details.
- Fill Buyer and seller details.
- Fill Article Code: B25- Agreement To Sell/ Transfer/Assignment
- Fill property area in square ft.
( Note: Section 32 of Registration Act, 1908 provides for all documents required for ROP)
Step 5: Submit the above details. Then, Save PDF file of receipt.
Step 6: Once your payment is cleared by the bank, the bank shall provides E- Secured Bank and Transfer Receipt. Attach it to the Sale Agreement.
Step 7: Take the Sale Agreement along with the payment receipt to the Registrar’s Office. He’ll check if the payment is done or not and register your property accordingly.
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Similar procedure is followed in other States too.
