Registration and Possession

Many buyers purchase a property in the hope that they will soon live in their dream home.

The registration is complete when the buyer takes possession of the flat. It is illegal if a builder fails to register the flat after the buyer takes possession.

Possession is when the buyer takes the keys from the developer and moves into the house.

The Registry/Sale Deed is a document that contains the legal agreement between the buyer/seller. It transfers legal rights to the flat from the seller/builder to the buyer. After paying stamp duty, registration takes place at the registrar office. This is usually between 5% to 12.5% in India. This is government regulation.

A document is registered to serve as notice of the transaction to anyone affected by it. Therefore, The registration serves as an implied notice for any person who acquires interest in the property covered by the document.

When you buy a flat from a builder –

A builder will usually handle all the formalities, including the registry. The buyer should be aware of all activities which the builder carries out.  Buyers could be in serious trouble if they don’t. Request the builder for a copy of the draft once the draft is complete. This draft should be carefully read.

To ensure that all items in the agreement to sell are part of the draft, you must consult an attorney knowledgeable in real estate matters.

What builders aim

Builders try to transfer possession of a flat to buyers in the shortest time possible, but projects can delay up to six months or even one year. In the agreement to sell, many developers will mention the expected date for possession. Many developers also mention a clause for an additional six-month grace period due to unavoidable circumstances such as labour strikes, recession, and environmental issues (bans on raw material supply).

Buyers who book their flats will be living in rented accommodation, in most cases. These buyers put pressure on the builder to take possession as soon as possible. The builder may give possession of the flats to the buyer without registering. A buyer can be the owner of the house only after the registration procedure.

Why do developers delay in registering?

Once a project has been completed, along with all its functional facilities (road, lifts, gardens, gyms, swimming pools etc.), the local development authority will issue a completion certificate.  The development authority will issue The completion certificate is to the builder. Only then the builder can rightly register the flats. This enables buyers to live in the house.

What problems can you have if you take possession without registering your property?

The speed of completion may slow down after the buyer takes possession. In this instance, the builder might ask the buyer for additional fees to use other facilities. The buyer may feel pressured to agree to the builder’s demands because he is afraid that the builder will cause problems during the registry.

What are the best times to register, and what precautions should you take?

Always take possession after registry. It is important to complete the apartment or flat before signing the sale deed. If you take possession of an apartment or flat without registering, the completion of the registry must be within six months.  Finally, Check to ensure that all charges, such as parking, common area, and transformer fees, are included.

Required Documents for Registration

Developer: The builder must obtain a local authority completion certificate for an apartment complex that has been newly constructed. The builder gives this certificate along with the possession letter.

From the seller: You will need the property tax papers and a letter from a housing society stating that there are no liabilities and no objection to the sale and that you are the property’s new owners.

Documents: A copy of your PAN card, Aadhar Card, photo ID proof (passport/driving licence), proof of residence and signatures of two witnesses are required.  if you have a home loan you need to get a no-objection certificate from the lender.

Why it is important to register your house soon

Requirement: As per section 17 of the Indian Constitution The Registration Act, 1908 makes it mandatory to register documents relating to the sale, transfer, or lease of property.

Time limit: Section 23 of the Act states that you must register the property within four months of executing the sale/gift deed.

Penalty: If you delay filing your application, Section 34 allows you to register the property within the next four months by paying the fees and a penalty.

Mutation of property

When selling a residential property, there are many documents that the seller must give to the buyer. The seller must provide the most recent mutation of the residential property to the buyer. The seller must know the contents of the document and how they relate to the sale of his property.

What is a mutation of property? 

Mutation of the property refers to the transfer/change of title ownership from the seller to the buyer on the selling or transferring of the property. Then the property’s title is recorded in the land revenue records under the new owner, which allows the government to collect property tax from the rightful owner.

Procedure

The land revenue office should issue updates on the mutation of property every six months to verify that no illegal transactions have been made on the property. Each state has its documentation requirements and fees for property mutation. The procedure requires making an application to the officer in charge of the area. You must do it on plain paper. You should attach A non-judicial stamp with relevant value, as per state norms,  to the application along with all information.