Property Registration in Delhi

All kinds of property-related documents are registered in Delhi in the concerned Sub Registrar’s office which holds jurisdiction over the area in which the property is situated.
Property title search reports are usually prepared by an experienced real estate lawyer, who after visiting the concerned government officials and inspecting the property documents through a searcher; issues a property title search report.

So Title verification holds a major significance in the Sale of a property.

Title Search at the Sub Registrar office

The buyer of a property must verify that the property s/he wants to purchase will not run into legal problems later on or that the seller of that property is indeed its rightful owner. In order to do so, s/he must conduct what is called ‘due diligence of that property

Important to verify property documents before any transaction : Conducting property due diligence involves taking the steps listed below.

  1. Carrying out title verification or title search of that property.
  2. Verifying the legal capacity of the seller. This means that the buyer must ensure that the seller is not of unsound mind or that s/he is not a minor at the time of sale.
  3. The property is free from encumbrances. ‘Encumbrance’ refers to the status of the property as having been mortgaged. The buyer of a property which has an encumbrance will have to pay the dues on the outstanding loan on that property if she ends up buying it.
  4. The property tax on it has been paid.
  5. The property does not have legal liabilities on it. There are multiple examples of how a property can run into legal disputes. For instance, the property may have been a residential property built on agricultural land by the seller without having obtained the requisite Change of Land Use (CLU) permission for it. 
  6. The title of the owner i.e. whether the legal document is in the owner’s name, issued by the Revenue Record Department.
  7. No mortgage or other encumbrances on the property are pending against the present owner.
  8. The property is transferable and heritable.

 The ownership details of a property at any given point in time are mentioned in the register of the sub-registrar. This serves as the primary proof of title and helps ascertain whether the person claiming to be the lawful owner of the property is indeed the registered owner.  

Once a property is registered, the details need to be updated in the concerned revenue office. The document shows the name of the present owner and the nature of the holding along with rights and liabilities if any.

An Encumbrance Certificate systematically records all registered transactions on a property. It can be applied for at the sub-registrar office by anyone who knows the property details like survey number and boundary details. It is important since any mortgage, loans, and other similar transactions are documented in it.

The Mother deed is the primary document that enabled the earliest recorded transfer of the property in question. It is especially important in the sale of individual plots divided from a bigger piece of land. The mother deed can explain the channels through which the property titles flowed to the present seller.

The tax liability of the seller should be completed as of the date of the proposed sale. The details as to the ownership are also ascertainable from the details given in the tax receipts.

 If the plot used to be part of agricultural land, it needs to be converted into residential land in order to validate the construction of residential buildings on it. The lack of conversion may result in the demolition of properties by the government.

If you are planning to purchase a house in an urban locality, it is necessary that the house plan has been approved by the municipal authorities. If there is any violation in terms of structures, they stand a chance of getting demolished along with the entire building if the violations are serious.
There are chances of the same being revoked or the holder selling the same property to multiple buyers. There may also be cases of a mortgaged property being sold.

Preparation of Sale Agreement

When you buy or sell property, the transaction is not legally valid without the buyer and seller signing the sale deed in the presence of at least two witnesses. Governed by the Registration Act, of 1908, the sale deed is the most important document for selling or purchasing property in India.

The agreement must contain details about the advance payment made to the Seller by the buyer and the agreed time period within which. the balance payment will be made by the buyer and the Final Sale Deed will be registered

Purchase of Stamp Paper and Preparation of Sale Deed

A sale deed is one of the most valuable legal documents in a purchase or sale of a property. A sale deed is drafted by a legal draftsman on a non-judicial stamp paper of the requisite value as prescribed by the stamp act of the particular state concerned

As per Section 17 of the Indian Registration Act, 1908, the Registration of a Sale Deed is compulsorily required in order to effect a valid transfer of the property from one party to another. For the registration of a Sale Deed, Stamp Duty is payable @4% of the property value, if the buyer is a female and @6% if the buyer is a male

Registration of Sale Deed and Presentation before the Sub Registrar

To present and lodge the sale deed for registration before the Office of the Sub-registrar of Assurances and to admit execution of the sale deed to receive consideration and give receipt and discharge and to do all acts and things necessary for effectively registering the said sale deed.

it has to be presented for registration in the Sub Registrar’s office under whose jurisdiction, the property is situated. Registration fee @ 1% of the property value has to be paid through a Demand Draft at the time of registration of the document.

In some offices, a prior appointment is required to be taken for the registration of the Sale Deed. At the time of registration, the documents are submitted to the Reader of the Sub Registrar of Assurances for scrutiny. After scrutinizing the documents, the Reader forwards the document to the Sub Registrar.

Thereafter, both the parties, along with two witnesses have to appear before the Sub Registrar to admit the execution of the document. The witnesses are required to authenticate the identity of the parties

Mutation of Name in MCD Records

Mutation in Municipal Corporation of Delhi (MCD) describes changing the name of the person in whose name a property is registered, in MCD records. The buyer must submit the duly signed application along with an affidavit, an indemnity bond, and a certified/notarized copy of the registered title deed.

The Circle Revenue Office assesses the claim, settles the value of the property tax (which can be paid online), and issues a letter of mutation in favor of the buyer certifying that the property has been mutated under the buyer’s name. The process takes around 30 to 45 days.

For more information/clarification about above mention topic you may contact us or other legal information

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