While we bet that you know the importance of registering a property in government records, there are a lot of old unregistered properties existing in the market that are not visible in the legal book of records. So, what is the process that an owner of an old unregistered property has to follow? We find out in this guide.
What is property registration?
The process of including the name of a new property owner in the government records at the time of transfer of ownership of the property is known as registration. This document is important as it establishes the owner of the property in legal records. This serves as proof for many things that may need legal backing such as availing a loan, property mortgage, property dispute etc.
See also: Should you buy an unregistered property?
Steps to register old unregistered property
Mentioned are steps to follow to register a property that was unregistered till now.
Establish ownership of the property
1) Collect documents: Start with collecting all documents related to the property that will help in proving your ownership.
2) Backtrack the owner: Next, track the previous owner of the property. As the property is not registered, mutation of property would also not be in place. Get in touch with the previous owner and mention to him the need to register the property. If the owner is not alive, you may need to get in touch with his legal heirs asking them to execute a sale deed in your favour.
3) Approach SRO: Next, approach the sub-registrar office where the sale deed will be executed on payment of stamp duty and registration charges.
See also: Property registration in India: Rules, documents, charges
Penalty to be paid for old unregistered property
As this is an old property registration, a penalty may have to be paid for not registering the property for all these years. For instance, under section 25 of Maharashtra Registration Act, a property has to be registered within 4 months of buying it. The cost of registering a property is generally around 1% of the property value. In case the 4 months deadline is missed, the buyer has to pay 10 times the average amount as penalty for registration of the property.
The penalty will be calculated at the SRO office. Note that state governments encourage old property registration and also waive off or offer rebate on the penalty. These schemes are offered from time to time and it’s recommended to get in touch with the SRO for more details. For instance, the Maharashtra government had launched the Maharashtra Stamp Duty Abhay Yojana in 2024, giving relief to many home owners in the state.
What if the previous owner doesn’t agree to register property in your name?
The first step is communication where you talk to the previous owner and make them understand the circumstances that the property was not registered and why he should cooperate now for it to be registered.
In case the owner or the legal heirs don’t agree then it is a difficult situation for you as an owner. However, you can still proceed ahead by filing a declaration stating that the entire consideration value of the property has been paid to the owner by your father or ancestors (in case you have legally inherited the property) and they were not present at the SRO at the time of registration of the property leading to it not being registered till date.
In case you have been owner of the property for more than 12 years and have also been staying there, with no one claiming stake on it, you can file an application of adverse possession with the court under which the property be declared as your property. Once this is done, get it registered in your name.
Documents required for registration of old unregistered property
- Aadhar card.
- Copy of original sale deed
- Passport size photo of previous owner
- Copy of latest property card
- Copy of municipal tax bill
- Any registered document that supports that consideration value was paid and registration was pending
What are the benefits of property registration?
1)  Once you have registered your property, you can file for mutation of property where change in ownership of title from one owner to another takes place. With the new owner’s name in the records, his name will be in all utilities and property tax records that validate the fact that he is the owner of the property.
2)Â Â Any dispute regarding the property will be easy to handle in your favour since property is registered in your name.
What are the disadvantages of property registration?
1)Â Â There is a chance that in the absence of registration of property, any tax benefit offered may not be able to be availed.
2)  There may be cases when the government acquires land – especially when infra projects are being constructed. In case the property is in such a line and is not registered, the government may take the property but may not be able to provide compensation since it’s not registered under anyone’s name.
3)Â Â There will be liabilities attached to the property that the owner may not be aware of because of the property not being registered.
Housing.com POV
An unregistered property in legal terms means that there is no owner for the property. This will lead to problems in terms of availing any benefit that a home owner otherwise may be eligible for. Additionally, the homeowner may also face problems in case any other person claims ownership in the property. Even if the homeowner wins the case, the property may be under litigation for many years leading to its deterioration. Also, the homeowner may have to spend a lot of money in case a court case has been filed. Thus, if your property is unregistered, steps must be taken to register it at the earliest. Once you have decided to get your old unregistered property, do also take legal advice by checking with the lawyer.
