Sale Deed

Delhi Property Registration – Procedure & Charges

 

Property registration in Delhi is handled by the Revenue Department. The Revenue Department handles property registration through 15 Sub-Registrar Office of the concerned sub division. Delhi has eleven districts and 33 sub divisions, three per district. In this article, we look at the procedure for property registration in Delhi along with procedure and charges.

Document Registration

As per the Registration Act, 1908, certain documents like sale or title deed, conveyance deed, lease deed, gift deed and agreement for sale need to be compulsorily registered. Some documents like Will, general power of attorney, special power of attorney, trust deed, partnership deed can be registered optionally through the Registrars office.

Property Document Due-Diligence

Prior to purchasing a property, its important to perform a thorough due-diligence on the validity of the title to the property using a Lawyer experienced in property matters. For following are some of the important areas that must be verified during a property document check:

Mother Deed or Parent Documents

Parent document is an important legal document that helps trace the ownership of property. Parent documents must have been registered and would be required for availing property loans, etc., In case, there is no parent document available (for instance, purchase of flat), then you must obtain certified copies of the parent document from the registering authorities.

Building Plan Approval

In case there is a building on the land or the property has a structure, then building plan approval must have been obtained from the relevant authorities. Building plan approval can be checked against the actual built up property to ensure there are no deviations.

Encumbrance Certificate

Encumbrance certificate can provide an insight into all the transactions that are done on the property. Encumbrance certificate can be used to check for evidences of mortgages, title transfers or any legally registered transaction that affects the property. Its important to obtain encumbrance certificate of upto 15 years to ensure there are no unforeseen liabilities attached with the property.

Property Tax Receipts

Check the property tax receipts to ensure that property taxes have been paid until the date of sale. Its also important to ensure that the owners name on the property tax receipt matches with the seller.

The above list is not exhaustive and would vary based on the type of transaction. Hence, its necessary to engage an experience Lawyer for completing property due-diligence.

Registration of Property Documents

Once the due-diligence is performed and terms of sale have been agreed by the seller and buyer, a sale deed must be drafted. Sale deed must contain details of the buyer, seller, property, terms of sale, etc., Once, the sale deed is drafted, it must be presented to the Sub-Registrars office with the following documents for registration.

Document required to be registered ( in duplicate);

Two passport size photographs of seller and buyer;
Two witnesses;
Proof of identification of each party and witnesses;

In case the property is/was under a lease from D.D.A., L&DO, M.C.D., Industries Department, Labour Department of Delhi Govt. etc., permission of lessor for registration of the document.
No objection Certificate under section 8 of Delhi Land (Restriction and Transfer) Act, 1972 from Tehsildar of the Sub Division of the District to the effect that the property is not under acquisition.
Income Tax clearance Certificate in prescribed proforma 34A, under section 230 of Income Tax Act, from concerned Income Tax Officer where the transaction exceeds Rs.5,00,000/-
Permission from the Appropriate Authority in the prescribed proforma 37 I, where the transaction exceeds Rs.50,00,000/- under the provisions contained in section 269 of Income Tax Act, 1961.
Stamp Duty Charges in Delhi
The charges applicable for property document registration in Delhi are:

Stamp duty and transfer duty @ 4% if the vendee is a woman and @ 6% if the vendee is a man
Registration fee is 1% of the total value of Sale Deed + Rs. 100/- pasting charge.Delhi Property Registration – Procedure & Charges

Property registration in Delhi is handled by the Revenue Department. The Revenue Department handles property registration through 15 Sub-Registrar Office of the concerned sub division. Delhi has eleven districts and 33 sub divisions, three per district. In this article, we look at the procedure for property registration in Delhi along with procedure and charges.

Document Registration

As per the Registration Act, 1908, certain documents like sale or title deed, conveyance deed, lease deed, gift deed and agreement for sale need to be compulsorily registered. Some documents like Will, general power of attorney, special power of attorney, trust deed, partnership deed can be registered optionally through the Registrars office.

Property Document Due-Diligence

Prior to purchasing a property, its important to perform a thorough due-diligence on the validity of the title to the property using a Lawyer experienced in property matters. For following are some of the important areas that must be verified during a property document check:

Mother Deed or Parent Documents

Parent document is an important legal document that helps trace the ownership of property. Parent documents must have been registered and would be required for availing property loans, etc., In case, there is no parent document available (for instance, purchase of flat), then you must obtain certified copies of the parent document from the registering authorities.

Building Plan Approval

In case there is a building on the land or the property has a structure, then building plan approval must have been obtained from the relevant authorities. Building plan approval can be checked against the actual built up property to ensure there are no deviations.

Encumbrance Certificate

Encumbrance certificate can provide an insight into all the transactions that are done on the property. Encumbrance certificate can be used to check for evidences of mortgages, title transfers or any legally registered transaction that affects the property. Its important to obtain encumbrance certificate of upto 15 years to ensure there are no unforeseen liabilities attached with the property.

Property Tax Receipts

Check the property tax receipts to ensure that property taxes have been paid until the date of sale. It’s also important to ensure that the owners name on the property tax receipt matches with the seller.

The above list is not exhaustive and would vary based on the type of transaction. Hence, its necessary to engage an experienced Lawyer for completing property due-diligence.

Registration of Property Documents

Once the due-diligence is performed and terms of sale have been agreed by the seller and buyer, a sale deed must be drafted. Sale deed must contain details of the buyer, seller, property, terms of sale, etc., Once, the sale deed is drafted, it must be presented to the Sub-Registrars office with the following documents for registration.

Document required to be registered ( in duplicate);

Two passport size photographs of seller and buyer;
Two witnesses;
Proof of identification of each party and witnesses;
In case the property is/was under a lease from D.D.A., L&DO, M.C.D., Industries Department, Labour Department of Delhi Govt. etc., permission of lessor for registration of the document.
No objection Certificate under section 8 of Delhi Land (Restriction and Transfer) Act, 1972 from Tehsildar of the Sub Division of the District to the effect that the property is not under acquisition.
Income Tax clearance Certificate in prescribed proforma 34A, under section 230 of Income Tax Act, from concerned Income Tax Officer where the transaction exceeds Rs.5,00,000/-
Permission from the Appropriate Authority in the prescribed proforma 37 I, where the transaction exceeds Rs.50,00,000/- under the provisions contained in section 269 of Income Tax Act, 1961.

Stamp Duty Charges in Delhi

The charges applicable for property document registration in Delhi are:

Stamp duty and transfer duty @ 4% if the vendee is a woman and @ 6% if the vendee is a man
Registration fee is 1% of the total value of Sale Deed + Rs. 100/- pasting charge.