Property registration is the final process of establishing legal rights on the property, including land, apartments, buildings, and more. In India, regulations for this procedure are provided under the Registration Act of 1908, which mandates that certain documents must be registered; otherwise, they do not have legal acknowledgment.
The Sub-Registrar’s office, which falls under the State Government, is the authority responsible for registering property dealings. However, there are situations where the Sub-Registrar may deny the registration of a property. This article discusses the conditions under which such a denial can occur, the laws surrounding these decisions, and the options available to the affected stakeholders.
See also: Know about house valuation
Legally, the buyer cannot become the legal owner of a property in India until the transaction is duly registered in their name, as provided under the Registration Act, 1908, and the Transfer of Property Act, 1982. To complete the process, the buyer and the seller, along with two witnesses, must approach the Sub-Registrar’s office in the area concerned, at an appointed time. At this stage, a new buyer may have several questions:
- What if the papers are not in order?
- What if the Sub-Registrar rejects the application for property registration?
- What if there are issues with the authenticity of the paperwork?
The parties to the transaction should ensure that the property registration application is not rejected by the officials at the Sub-Registrar’s office. Here’s how you can make sure of that.
See also: DORIS Delhi Online Registration Information System for property registration in Delhi
See also: Laws related to registration of property transactions in India
Legal framework governing property registration
Property registration in India is mainly based on the Registration Act of 1908. This Act clarifies which types of documents require registration, the procedure to do so, and the powers of the Sub-Registrar.
As per Section 17 of the Act, documents such as deeds of sale, gift deeds, and lease deeds that exceed one year must be officially registered. Additionally, various state laws also apply to property registration in India. This Act aims to ensure fair property transactions and protect all parties involved in the process.
The role of the sub-registrar in property registration
The Sub-Registrar plays a vital role in property registration in India. The Sub-Registrar is a public official appointed by the government and is tasked with registering various legal documents. Among these, the registration of the sale, lease, or mortgage of immovable property is a major task performed by the Sub-Registrar. Here are some details about the Sub-Registrar’s role in property registration:
Custodian of public records: Sub-Registrar of the jurisdiction maintains ‘registries’ of property transactions as recorded in the prescribed register. A registration enables the document to be in the public domain and this is open to the public for scrutiny. It also aids in curbing of fraud in the market and gives legal recognition to property transactions.
Verification of documents: During the initial processes of registering a property transaction, the Sub-Registrar checks the genuineness as well as the legibility of all the necessary papers including the sale deeds and the identification proofs. It checks on the legal authenticity of the transaction and more so checks on the legal capacity of the parties to the transaction.
Assessment of stamp duty: Stamp Duty, refers to a tax levied on certain instruments, the Sub-Registrar also confirms the payment of stamp duty. Where the stamp duty is inadequate the Sub-Registrar can decline to register the property in lack of full stamp duty payment.
Ensuring legal compliance: The Sub-Registrar verifies whether the transfer or sale of the property has oblige with the law relating to zoning and land use of the property. To be precise, if the concerned transaction is against the law, the Sub-Registrar can reject the registration.
Protection against fraud: Through authentication of documents and compliance with the legal requirements of the Sub-Registrar the integrity of the property transfers is safeguarded against fraudulent transactions. The legal evidence of the transaction is obtained from the Sub Registrar and this cannot be changed easily in the future.
What are the powers of a sub-registrar?
Head of Office: The Sub-Registrar supervises staff and manages office operations.
Financial Authority: Acts as the Drawing and Disbursing Officer, handling financial matters of the office.
Registration Authority: Registers documents under the Registration Act, ensuring legal transactions are properly recorded.
Stamp Collector: Collects stamp duties as per Section 47-A and Section 40 of the Indian Stamp Act.
Marriage Officer: Registers marriages under the Special Marriage Act.
Public Information Officer (PIO): Handles information requests under the RTI Act.
Stamp Vendor: Authorizes the sale of non-judicial stamp paper through electronic franking.
Documents needed for property registration
The parties involved in the transaction must provide various documents at the time of property registration. In addition to the property’s documents, these include the identification and address proof of the buyer, the seller, and the witnesses. Apart from copies, each party must also produce the original documents. If a home loan is taken to buy the property, a representative from the bank would also appear before the Sub-Registrar.
Depending on whether you are buying an under-construction property or a resale home, you will have to provide some or all of the documents mentioned below:
- Sale deed
- Copy of the building plan
- Encumbrance certificate
- No-objection certificates
- Allotment letter
- Completion certificate
- Occupancy certificate
- Property tax receipts
- Multiple copies of the document required to be registered
See also: All about online registry of property in India
Other documents needed at the time of property registration
- Copies and original PAN cards of the buyer and seller.
- Two passport-size photographs of the buyer, seller, and witnesses.
- Copies and original photo identity proof of the buyer, seller, and witnesses.
Note: After the property is registered, the bank would keep the original documents and return them to the buyer only after the full repayment of the home loan, if housing finance is involved in the transaction.
Grounds on which property registration application can be rejected
In situations where the Sub-Registrar refuses property registration, Section 34 of the Registration Act, 1908 outlines the conditions under which such a refusal can occur:
As a general rule, the Sub-Registrar is bound to register documents tendered for registration to him, etc; but they are under certain contingencies wherein they can decline the registration of the documents presented by the parties before them. These circumstances are outlined in Section 34 of the Registration Act, 1908, and can be broadly categorized as follows: These circumstances are outlined in Section 34 of the Registration Act, 1908, and can be broadly categorized as follows:
- a) Inclear document processing
Lack of completeness in documentation is one of the most common causes of refusal. The Sub-Registrar is responsible for confirming all essential documents, including the sale deed, title deed, and identity of the parties involved. If any of these documents are missing or incomplete, the Sub-Registrar may decline to register the property.
- b) Poor collection of stamp duties
Stamp duty is a tax charged by the government on deeds, especially those relating to legal formalities. The stamp duty charged depends on the value of the property and the state where the property exists. If the stamp duty paid is inadequate or if the payment has not been made, the Sub-Registrar can refuse to register the property.
- c) Differences in facts of the property
The Sub-Registrar is required to cross-check the details of the property in the documents with the details recorded in the sub-register. If there are disputes regarding the description of the property, spot demarcation, or ownership of the property, the Sub-Registrar cannot register the property until such disputes are resolved.
- d) Shared ‘Title’ or ‘Ownership’.
It is mandatory for a property to be registered in the name of the registrant with no legal issues. If the ownership of the property is in dispute or if the title to the property is not established, the Sub-Registrar may refuse to register the property. The registration can only proceed after the issues of conflict have been resolved and the title cleared.
(e) Breach of legal requirements
The Sub-Registrar must ensure that the transaction in question is legal and does not violate any provisions of the law. The Sub-Registrar can refuse registration if the transaction violates any laws, including zoning laws, land ceiling laws, or laws governing the transfer of agricultural land.
- f) Counterfeiting or use of fake identification.
If the Sub-Registrar suspects that the documents submitted for registration are false or forged, they can withhold the documents from being registered. This measure helps prevent situations where someone registers properties they did not legally acquire or obtained through fraudulent means.
Note: Under the provisions of the Registration Act, the sub-registrar may reject your application for registration, with or without citing a specific reason for it.
See also: How to become co-owner of property?
Contents of the sale deed
Among the various grounds on which the sub-registrar can refuse to register your property documents, is the language of the title deed document and any information mismatch. If the document is written in such a way that the nature of the contract is not clear, your application would stand rejected. The same is true in case names, addresses or occupations of the transacting parties as mentioned in the sale deed, are not duly supported by ID proofs and address proofs. Also, deletions or insertions made after the deed is typed, would make your application invalid. Hence, one should be absolutely certain about the content that is typed into the sale deed.
Breakdown of the essential components of a sale deed
Involved parties: According to the requirement of the sale deed, the names, addresses and other requisite details of the purchaser as well as the seller have to be mentioned. It also helps in establishing that the different traders who are involved in the particular transaction are easily and recognizable so that they can be made to flow with the specific provisions of the agreement.
Description of the property: This section offers a detailed narration of the items that are being sold in the property such as the house or building. These features comprise of location, area of the building and land, its measurements, and any other features that may be present within the perimeter of the building. Further, to eliminate doubt about the particular property being dealt with the sale deed must contain the municipal/revenue survey number and the complete address.
Sale consideration: The sale deed has to include the consideration that has been mutually agreed between the buyer and the seller in the property transaction. This section should also state how payment is to be made, whether the payment will be made at once or over a specific period of time and any other fee agreed between them.
Transfer of Title: This clause means that the seller passes the title of the property to the buyer as a way of conveying the property sold. It forms an important component of the sale deed for it defines the buyer’s legal standing in the context of the property and makes him or her the new lawful owner.
Date of transfer: The sale deed should refer to the date from which the transfer of property rights occurs to the buyer. This date is important and logical for defining the point, when the buyer possesses all legal rights for the property purchase and further.
Indemnity clause: The use of an indemnity clause becomes particularly important to safeguard the position of the buyer in case of future incidents or litigation arising from the property. It holds that the seller will be liable to the buyer in the event of any legal costs related to the commodity marketing and this may include any legal suits that may come along due to defects in the title deed or any other hidden hitches.
Encumbrance details: Any encumbrances that were on the property such as a lien, a mortgage, or other like interest must be indicated in the sale deed. It can prevent possible problems and initiate legal obligations for the buyer, all of which are very important for the effective purchasing process.
Possession delivery: Typically, in the sale deed, there should be included the date on which the seller will deliver the property to the buyer. It also helps in defining the time at which the buyer can take physical possession of the property.
Execution and witnesses: The original sale deed is valid and legal only when the parties involved, that is the buyer and the seller have signed. Also, the transaction requires at least two witnesses to sign to support the transaction document. Other information to be recorded in the deed may comprise the names and the addresses of the witnesses.
Registration: This means that for the sale deed to be enforceable there should be compliance with the registration requirements normally at the Sub-Registrar’s office. Registration ultimately finalizes the contract makes it valid in the eyes of law and provides the legal rights and ownership of the property to the buyer.
See also: Know all about Transfer of Property Act
Approach the right sub-registrar
The property you have bought falls under the ambit of a certain sub-registrar’s office. You have to book an appointment at this specific office, to get your property registered. In big cities, several such offices govern property transactions in various areas. This does not, however, mean you could approach any of them, to get the registration done. Find the office of the sub-registrar concerned and take an appointment, before you visit it for registration.
Parties to be present at the time of registration
All parties involved in the transaction (the buyer/s, the seller/s, the broker/s and the witnesses) have to be present at the sub-registrar’s office at the appointed time. All these people will have to provide thumb impressions, photographs and signatures at the time of registration.
See also: Know about power of attorney for property
Practical implications for property buyers and sellers
To avoid a refusal from the sub-registrar, it is crucial for both the buyers and sellers to keep a few things in mind. Understanding these implications can help parties navigate the registration process more effectively.
a) Due diligence
To eliminate the likelihood of refusal the parties to the contract must exercise due diligence before engaging in property transactions. This involves reviewing the title, checking the documents required, and establishing whether the property meets or violates the provisions of the law.
b) Legal assistance
Due to the numerous issues that may arise because of the registration of properties, it is important to consult a lawyer when preparing documents for registration. A competent legal assistant can assist in checking all the legal formalities are complied with and that there are no mistakes in the documents.
c) Efficient termination of disputes
If there is a looming controversy touching on the property to be registered, it is paramount to sort out the squabbles before attempting registration. Litigation or other methods of handling civil disputes are useful to clear the title and prepare for registration.
Housing.com POV
Sub-registrar plays a major role in the protection of the integrity of property transactions. Refusal to register a property may frustrate you, but note that it is only done so to prevent fraud and ensure compliance with legal provisions. The buyers and sellers must understand the process of property registration well to avoid rejection, minimize risks, and ensure a smooth, legally sound transfer of ownership.
FAQs
What are the primary reasons a sub-registrar might refuse to register a property?
Registration may be refused by the Sub-Registrar when the documents are either not in order, proper documents have not been presented, adequate stamp fee has not been paid, there are defects in the description of the property, the ownership is contested, the transaction violates law, or if there are reasons to believe that the transaction is a fraud.
In what manner does the sub-registrar confirm the genuineness of the property documents presented?
The Sub-Registrar affirms documents by examining their contents, identifying the parties, and ensuring all documents have been executed properly and without any forgery.
Can a sub-registrar refuse registration if there’s a minor error in the documents?
Yes, but only if the error is significant enough to cast doubt on the authenticity of the transaction. The Sub-Registrar may withhold registration until the mistake is corrected. Insignificant mistakes may be corrected by amendments or corrections.
What happens if the sub-registrar refuses to register a property due to unpaid stamp duty?
If stamp duty is unpaid or inadequate, the Sub-Registrar will not register the property. The correct amount must be paid, and payment vouchers must be produced for the registration process to proceed.
Can the refusal of registration be appealed?
Yes, if the Sub-Registrar declines to register the documents, the involved party can appeal to the District Registrar or file a writ petition with the High Court for judicial review.
What is an indemnity clause, and why is it important in a sale deed?
An indemnity clause safeguards the purchaser against any possible lawsuits from the buyer for any future issues related to the property. It ensures that the seller will compensate the buyer for any legal loss that may occur after the transfer, such as defects in title or hidden title.
Does the sub-registrar have the power to reject without registering a deed?
The sub-registrar has the power to refuse registration of the deed, but they must record the reasons for such refusal.
