Is moving into a new flat without a registry legal?

The Registration Act, 1908, mandates that all properties worth more than Rs 100 must be registered in government records. The low financial threshold brings all property transactions under the Registration Act. Therefore, property registration is mandatory under Indian law.

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The law provides that a sale deed be registered within four months of stamp duty and registration fee payments to the state government.

For the uninitiated, land is a state subject in India. States have the power to impose stamp duty and registration charges for the registration of immovable assets. These rates differ by state.

What happens if you move into a property without registration?

In the absence of a registered sales deed, there is no legal proof of your ownership. You, legally, have no right over the property even if you have possession. Anyone with valid proof of ownership can force you to leave the premises through a court order even if you have paid the full worth of the property.

Penalty for living in a property without registration

Living on a property without registration is a violation of the law. Those found guilty of this violation may be asked to pay 10 times the registration fee by the authorities.

FAQs

Is registering a property mandatory?

It is mandatory to register all properties worth over Rs 100.

What happens if a flat is not registered?

The owner can lose ownership and face a penalty if a flat is unregistered.

Should I buy property without registration?

Investing in an unregistered property is risky since you will not be the legal owner.

What are the new rules for property registration in India?

Under the Registration Act, 1908, an owner must register a property in government records to have legal authority over the property.

Is it mandatory to register a property in India?

Yes, it is mandatory to register a property in India.

What is stamp duty?

Stamp duty is the charge you pay to the government for approval of the change of ownership.

What is the registration charge?

Registration charge is the amount paid to the state government for putting a contract or a deed in the government’s records.

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Sunita Mishra

An alumna of the Indian Institute of Mass Communication, Dhenkanal, Sunita Mishra brings over 16 years of expertise to the fields of legal matters, financial insights, and property market trends. Recognised for her ability to elucidate complex topics, her articles serve as a go-to resource for home buyers navigating intricate subjects. Through her extensive career, she has been associated with esteemed organisations like the Financial Express, Hindustan Times, Network18, All India Radio, and Business Standard.

In addition to her professional accomplishments, Sunita holds an MA degree in Sanskrit, with a specialisation in Indian Philosophy, from Delhi University. Outside of her work schedule, she likes to unwind by practising Yoga, and pursues her passion for travel.
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