One you have decided to buy a commercial property, negotiated the price and done some of the basic formalities, then is the turn of registering the property in your name. The Registration Act 1908 mandates that the sale deed must be registered for the property to be legally transferred in the name of the buyer (or buyers). All the processes and formalities can be slightly daunting for someone who is buying a commercial property for the first time. Help from lawyers and consultants brokers can be taken if the sum involved is large enough. However, if the amount involved in not very big then taking care of the following aspects should see you through:
Circle Rate and Stamp Duty
The calculation of the value of the property will be based on the circle rate and the stamp duty will be calculated on the basis of the circle rate. While buying the property, you have to calculate the stamp duty applicable. Then you have to buy non-judicial stamp paper equivalent to the value of stamp duty. The circle rates and stamp duty charges vary from one state to another and also depend whether the commercial property is new or old. These things must be kept in mind while arriving at the value of the stamp duty.
Visiting the Sub-registrar’s Office
You have to reach the sub-registrar’s office with two witnesses for registration of the property. The parties to the sale deed have to carry documents like identity proof, photos and property documents. You have to make sure that your name, address of the property, etc are correctly entered in the records. Any mistake can be costly. Here you will get a receipt for the payments you make. This receipt must be kept carefully as it will be required in about 15-20 days of registration for collection of the sale deed.
In Case of Purchase in Joint Name
If case you are purchasing the property with another person, that is, in joint name, then that person has also be present at the sub-registrar’s office on the date of registration of the property. All persons have to carry valid identity proof and photographs. You must check that the both names are entered correctly in the records of the registrar.
Important Documents You Must Have
Aadhar card and PAN card will be required for registration, apart from property documents. Passport or Driving License can also be used in pace of Aadhar card. If the deal is above a certain value, then you may be required to submit proof of TDS (Tax Deducted at Source) for your property. You may have to consult an expert or a lawyer for this.