Here are some basic things you should look at when registering your property.
Where should you register?
What documents do you need?
Primary market: For the registration of property in a newly built apartment complex, your developer needs to obtain a completion certificate from the local authority. The developer gives you a copy of the completion certification along with a possession letter.
Secondary market: Here, apart from the sale deed, you need to submit property tax papers and a letter from the resident’s welfare association of the society or area mentioning that you are the new owner of the flat. If there is a home loan on the house you are buying, you will also require a no-objection certificate from the lender.
How much is the registration fee?
Currently, the registration fee is 1% of the market value of the property or the applicable circle rate in the city, whichever is higher. However, every state government has an upper limit. For example, Delhi government has put a cap of 50,000 for registration charges.
How soon do you need to register?
In the primary market, usually the developers do the registration on your behalf, so there is no time limit within which you need to get your apartment registered.
After you have bought a property in the secondary market, you need to register the sale deed within the period mentioned in the deed. This period is mutually decided upon by you and the seller. This is done to give the seller some time to settle his dues such as property tax, obtain no-dues certificate from the bank and furnish other necessary documents. It helps you arrange for funds to get a loan sanctioned. At the time of signing the agreement/sale deed, a date is fixed for the full and the final payment.
Why do you need to register?
Registration of property is mandatory by law. It is in your interest since it protects you against title disputes, which is common in India. In fact, the Supreme Court recently passed a judgement that property transactions will only happen through registered sale deeds.