No. 1 Property Verification Services & Property Management Services

Document Registration – Requirements and Precautions


Monthly Archives: May 2016

Document Registration – Requirements and Precautions

The Transfer Of Property Act 1882 and Registration Act, 1908 prescribe compulsory registration of certain documents. Transfer of Property Act mandates that certain documents to be valid; they should give “notice to the world”. Registration Act, 1908 gives the mechanism to the concept of “notice to the world”. The documents registered in Book 1 of Registration Offices are public documents, so any public may inspect such book; get copies of the same and a list of details of registered documents chronologically in the shape of an Encumbrance Certificate (EC). Documents affecting immovable property through sale, gift, partition, release, mortgage, lease, sale agreement are some of the compulsorily registrable documents. Registration Act is one of the oldest legislations made during pre-Independence period that are being implemented in almost all parts of the country without altering substantially for the last 200 years. Records containing the copies of registered documents in Registration Offices are permanent in nature (philosophically speaking they have to be preserved for eternity); therefore, record preservation is one of the prime objectives of the Registration Department. Civil courts heavily depend on the records of Registration Department in deciding the issues like title, ownership, possession of immovable properties.

Majority of parties invariably approach solicitors, advocates or professional document writers to get their documents prepared; and, at times, also for registration. But, it is better to know some of the important aspects of document and its registration so as to check whether the person who is entrusted with its preparation and registration is acting properly.

One must know that the Transfer of Property Act and other civil laws in India keep the onus on the purchaser/beneficiary under the document to take all the responsibility of verification of the title, ownership, possession of property. It is not the responsibility of the Registering Officer or Registration Department to check all these aspects. The role of the Registrar or the Department is very limited in these aspects. The Registrar is empowered to verify certain issues but such power is limited and he cannot undertake roving enquiries. Therefore, it is the purchaser who must take all steps and precautions to record all the recitals/covenants properly pertaining to the transaction in the document; and get it registered as per the provisions of Registration Act, 1908. The mistakes in documentation may result in civil disputes and the parties have to undergo mental and physical strain besides incurring financial loss. “A stitch in time saves nine” is an apt phrase for documentation. Document is the final product of the transaction. The intent and objects of the transaction which may be part of mental design will go waste if you could not record properly the same by using proper and appropriate language/recitals in the document.

Sale-Deed

Following are some of the requirements and Precautions in document registration:

  1. Full and identifiable property description:

If there are any blanks, erasures, interlineations and alterations in the document, the parties shall attest them with their signatures or initials. So, please check whether there are any blanks, erasures, etc; in the document which require attestation by the parties before submitting it to Registrar for registration.

  1. Attest blanks, erasures, alterations

Property shall be described with full details to identify the same without any ambiguity. In case of agriculture property, the survey number (old and new), full extent of survey number, and if part of it is transacted then all the four boundaries of the property, extent of property under transaction, village name, panchayat name, mandal name, district name shall be written clearly. The details like pattadar pass book and title deeds may also be recorded to link the ownership with the details of property. In respect of house property, the details like door number (old and new), assessment number of the property, street name, and village/city name shall be mentioned. In respect of vacant lands situated in remote places the property description requires a lot more caution and effort. The people are cheated by fraudsters by creating multiple documents by selling the same property with various descriptions. It is in the interest of the buyer, the description of property must be full and complete. It is better to avoid vague description of boundaries like “neighbour’s property”. Make genuine efforts to know the current owners of the properties abutting the scheduled property and record in the document. Property description is heart of the documentation as ultimately the Registration Department converts these details into index particulars; and also uses to generate,Encumbrance Certificate (EC). Accuracy of these details will result in proper indexing and help people to know the registered transactions on the property.

  1. Check whether property is Assigned/Government/ wakf/endowment lands, etc.:

Purchase or otherwise dealing with the government, assigned, wakf, endowment, scheduled areas (1 of 1970 Act) lands is prohibited and entails criminal proceedings. Therefore, it is advised to check and ensure that the property under transaction is not one of these lands.

  • Check whether property is Assigned/Government/ wakf/endowment lands, etc.:

Document other than will deed shall be presented for registration within four months from signing by the parties. In case of delay in presenting within the stipulated four months citing unavoidable circumstances by the parties, the Registrar may condone the delay after collecting the penalty. But in any case, the delay shall not exceed four months. That means a document shall be presented before the concerned Registering Officer for registration within four months without any penalty; and within eight months by paying penalty. But no document shall be accepted for registration after lapse of eight months from the date of signing (execution) by the parties. Therefore, the parties are advised to present the document before the Registering Officer concerned at the earliest possible day after execution of the document.

  • In respect of document executed outside India, the document can be presented for registration before the jurisdiction Registering Officer within four months after its arrival in India. The party presenting the document may have to prove to the satisfaction of the Registering Officer that the document was received in India on a particular date with documentary evidence like courier delivery receipt, affidavit from carrier of the document, etc.
  • Will deeds can be presented at any time:

There is no time limit to present will deeds. A will can be presented for registration even after 50 years. A Will can be presented by the beneficiary/executor even after the death of the testator/testatrix. The Registering Officer will conduct enquiry as per the provisions of Registration Act, and may register the will if he is satisfied that the will was properly executed by the deceased testator.

  1. Competent Registrar/Sub Registrar Office: Documents in respect of immovable property transactions such as sale, lease, mortgage, release, partition, agreement/development agreements etc shall be presented to the jurisdiction Registrar/Sub Registrar Office for registration. Party shall find out the jurisdiction Registrar/Sub Registrar Office. Eg. Hyderabad Municipal Corporation Ward No.1 and 2 fall under the jurisdiction of Chikkadpalli Sub Registrar, whereas Ward Nos.3 to 5 falls under the jurisdiction of District Registrar, Hyderabad. If you want to register a sale deed pertaining to a property falling under Ward No.3, then you shall go to District Registrar, Hyderabad and present the document before the Joint Sub Registrar for its registration. If you are registering a property falling under Ward No.1 of MCH, then either you may present the document before jurisdiction Sub Registrar, Chikkadpalli or you may present the same before the District Registrar (Joint SR I), Hyderabad for its registration. It is always advisable to get the documents registered with the jurisdiction Sub Registrar. Documents other than immovable property transactions like movable property transactions, affidavits, etc., may be registered in any Registrar/Sub Registrar Office
  2. Persons competent to present the document for registration:

Person signing the document is called executant of the document. The executant can present the document for registration. If there is more than one executant in the document, then any one of the executants can present the document. But admission of execution shall be done by all the executants. The claimant (beneficiary) may also present the document. Any attested power of attorney holder may present the document. Attested power of attorney comes into picture when the document which shall be registered is actually signed by the principal but due to certain reasons, if the principal is not in a position to present and admit the execution before the Registering Officer, then the principal gives the power to the agent authorising him to present and admit the execution of the document, which the principal has signed. This power requires attestation. This power shall be attested by the Sub Registrar of the area where the principal resides if he is in India where Registration Act, 1908 is in force. If the principal resides outside India, then the notary public/Consul/Vice-Consul of India shall attest such power of attorney.

To make it clear, once again, it is to inform that the attestation is required in case of the power authorising the agent to present the document executed by the principal; but not in the case of the general power of attorney which authorises the agent to sign on behalf of the principal. When the Agent signs the document on behalf of the Principal, he automatically becomes the executant, so he presents the document in the capacity of executant.

Such general power of attorney is optionally registrable document; and if parties wish to get it registered, they can get it registered. A power which requires attestation, even though it is registered as per the provisions of Registration Act, 1908 instead of attestation, shall not be accepted by the Registrar/Sub Registrar as it is incurable defect.

  1. Affixing of photograph and fingerprints:

In respect of sale deed, the photographs and fingerprints of both the seller and buyer shall be affixed in the prescribed format under Section 32A of Registration Act, 1908. In respect of other documents, the photograph and fingerprints of presentent shall be affixed.

  1. Route Map:

A map/sketch shall be enclosed with the non-testamentary document affecting immovable properties clearly drawing the route leading to the scheduled property. This route map shall be drawn so that even a stranger can locate the property by using the landmarks mentioned in the map. The map must indicate where exactly the property is located and the nearby landmarks such as post office, police station, temple, mosque, chowrastha etc.

  1. Address proof of parties, witnesses/identifying witnesses:

Along with the document, the parties shall also enclose copies of address proof of the executing, claiming parties, attesting witnesses and identifying witnesses. The address proof recognizable by the department includes passport, ration card, Aadhar card (UID), bank passbook containing the full address of the person, driving licence etc.

  1. Production of PPBs & TDs at the time of registration and to get entries made:

The parties shall produce pattadar passbooks and title deeds issued by revenue department if the document affects agricultural land.

Hidden Costs of Buying a Home

Low mortgage rates and more affordable home prices in some housing markets are creating renewed interest in homeownership, especially among young renters who are tired of seeing their rent costs rise every year. Homeownership can be a path to a solid financial future because each monthly mortgage payment will lead to increased home equity and rising home values will eventually add to your asset. However, potential buyers who are unprepared for the true cost of owning property may be shocked by the bite homeownership can take out of their wallet in addition to their mortgage payments.

Buying a Home

Inspection and Appraisal Fees
Before you purchase a home, you need to pay for a home inspection, an appraisal and perhaps additional inspections for pests or radon. The costs of these inspections are borne by buyers and are a necessary protection to avoid buying a flawed property or paying too much.

Closing Costs
Some buyers are able to negotiate with the seller for a contribution for these costs, but buyers need to be prepared with the cash for anywhere from 2% to 4% of the mortgage balance depending on your area.

Taxes
As a homeowner, you’ll need to pay property taxes, which are generally part of the escrow you pay into each month. Remember, even if you have a fixed-rate home loan, your property taxes could go up and increase your monthly housing costs.

Insurance
Your lender will require home insurance, which could be costly depending on a variety of factors including the construction materials of your home and the location. Even if you have renter’s insurance, you’ll find that home insurance costs more because you are paying for the ability to rebuild your home in addition to replacing your personal possessions. Insurance costs can also rise over time, and you may need supplemental insurance if you live in a flood or earthquake zone.

HOA and Condo Fees
If you buy a home within a homeowners’ association or a condominium association, you’ll be required to pay a monthly or quarterly fee. These fees can rise, or your association may need to charge a special assessment for projects such as repaving the parking lot or repairing a roof.

Moving Costs
Not only will you need to pay a moving company or rent a truck to move your belongings, but you may need to make deposits to start your utilities.

Utility Bills
Depending on where you live now, your costs for electricity, gas and water could be higher when you move into your own home. You may also need to pay for garbage collection along with your Internet, cable and phone bill.

Furniture and Decorative Items
While this is essentially a discretionary expense, most people who move from a small apartment to a larger home need to buy at least some new furniture. You can keep your expenses in this category in check by waiting for a year or two to buy extra things and carefully comparing prices before any big purchases.

Lawn Care
Whether you handle your yard work yourself or hire a professional, you will have to pay something to keep your landscaping in check. Lawn equipment can be costly and, if you have a lot of land, you may need items such as a snow blower or a leaf blower, too.

Maintenance
Interior home maintenance costs both time and money. While you may be able to change your furnace filters, clean your gutters and keep your appliances running smoothly yourself, you may also need to hire a contractor to clean and inspect your chimney and to keep your heating and air conditioning system in top shape.

Repairs
While maintenance tasks can be predictable, the most costly part of homeownership typically comes with unexpected repairs such as replacing or repairing the roof, fixing loose tiles in the shower, removing an overgrown or dead tree, or paying for mold mitigation in a damp basement. The list of possibilities is endless, so the best thing homeowners can do is to set aside savings for an emergency. Some financial experts suggest budgeting for 1% or 2% of your mortgage balance as a yearly maintenance and repair fund, but the amount you save depends on the age, condition and size of your home.

The Bottom Line
While buying a home may cost a little more than you think, the investment in property can still be worthwhile as long as you buy what you can afford, budget for expected and unexpected expenses and hold onto your home for at least seven to 10 years.

What do the tenants in Hyderabad prefer?

Hyderabad is known for its affordable rents, and people are able to defer or delay their final property purchase due to the abundant availability of rental properties. A report on rental preferences today.

In Hyderabad, the trend of living in rental accommodation usually involves multi-storey apartments followed by other kinds of property types. A couple of years ago, the city came under the siege of corporates.  Since then, the rental market has had a good run.

Magicbricks conducted a Rental Housing survey, which unveiled some interesting facts. The survey indicated tenant preference in terms of housing types, their preferred budget, amenities that they wish for, amongst others.

rent hyderabad property

 

The survey tells us that the most popular rental budget segment is the Rs 7,000-8,000 per month, followed by the Rs 12,000 -13,000 per month and the Rs 10,000-11,000 per month rental segments.

From the supply side, the top budget segment per month is the Rs 10,000-11,000, followed by Rs 12,000-13,000; and Rs 15,000-16,000 segments.

This shows that though low rental budget is most in demand, it is not being catered to on the ground. However, the budget segments of Rs 12,000-13,000 per month and Rs 10,000-11,000 per month are being met fair and square.

Localities to consider as rental options

The top micro-markets housing the maximum number of rental units include Banjara Hills, Madhapur, East Maredpally, Begumpet and Gachibowli.

Primary requirements of tenants

Demand for proper water storage facility has received the maximum number of votes for facilities most saught after. Other close requirements would be separate meter for electricity, security of the locality, a developed social infrastructure, a semi-furnished unit, etc. Whereas, the option of proximity to commercial hubs received the least number of votes from the respondents. Here’s a quick summary of their needs as per their preference order.

Respondents from all over India shared that location was key to their final decision. Morevoer, renting in Hyderabad and the nuances of the tenants does indicate their inclination towards new age projects offering multi storey apartments.

Though the preference is clearly apartments, the rental budget is usually in the mid range. This comes as a surprise as the needs expressed by the tenants is pretty modern.

Amenities come at a price, be it the convineance of a gated community or facilities such as security, soft furnishings such as geyser, power back-up, reserved parking, nearness to malls entertainment zones, etc.

Having said this, it is important to point out that water storage seems to be the looming factor in the minds of tenants.

This has been clearly defined with the most number of votes.

Suburban location is the choice of tenants which is understandable. Given the fact that new projects are rampant in the suburbs with office hubs emerging in those areas and comparatively inexpensive properties their selection is logical.

Source: Namrata Ekka, Times Property, The Times of India, Hyderabad.

11 Hidden Costs Of Owning A Home

Low mortgage rates and more affordable home prices in some housing markets are creating renewed interest in homeownership, especially among young renters who are tired of seeing their rent costs rise every year. Homeownership can be a path to a solid financial future because each monthly mortgage payment will lead to increased home equity and rising home values will eventually add to your asset. However, potential buyers who are unprepared for the true cost of owning property may be shocked by the bite homeownership can take out of their wallet in addition to their mortgage payments.

Inspection and Appraisal Fees
Before you purchase a home, you need to pay for a home inspection, an appraisal and perhaps additional inspections for pests or radon. The costs of these inspections are borne by buyers and are a necessary protection to avoid buying a flawed property or paying too much.
Closing Costs
Some buyers are able to negotiate with the seller for a contribution for these costs, but buyers need to be prepared with the cash for anywhere from 2% to 4% of the mortgage balance depending on your area.

Taxes
As a homeowner, you’ll need to pay property taxes, which are generally part of the escrow you pay into each month. Remember, even if you have a fixed-rate home loan, your property taxes could go up and increase your monthly housing costs.

Insurance
Your lender will require home insurance, which could be costly depending on a variety of factors including the construction materials of your home and the location. Even if you have renter’s insurance, you’ll find that home insurance costs more because you are paying for the ability to rebuild your home in addition to replacing your personal possessions. Insurance costs can also rise over time, and you may need supplemental insurance if you live in a flood or earthquake zone.

HOA and Condo Fees
If you buy a home within a homeowners’ association or a condominium association, you’ll be required to pay a monthly or quarterly fee. These fees can rise, or your association may need to charge a special assessment for projects such as repaving the parking lot or repairing a roof.

Moving Costs
Not only will you need to pay a moving company or rent a truck to move your belongings, but you may need to make deposits to start your utilities.

Utility Bills
Depending on where you live now, your costs for electricity, gas and water could be higher when you move into your own home. You may also need to pay for garbage collection along with your Internet, cable and phone bill.

Furniture and Decorative Items
While this is essentially a discretionary expense, most people who move from a small apartment to a larger home need to buy at least some new furniture. You can keep your expenses in this category in check by waiting for a year or two to buy extra things and carefully comparing prices before any big purchases.

Lawn Care
Whether you handle your yard work yourself or hire a professional, you will have to pay something to keep your landscaping in check. Lawn equipment can be costly and, if you have a lot of land, you may need items such as a snow blower or a leaf blower, too.

Maintenance
Interior home maintenance costs both time and money. While you may be able to change your furnace filters, clean your gutters and keep your appliances running smoothly yourself, you may also need to hire a contractor to clean and inspect your chimney and to keep your heating and air conditioning system in top shape.

Repairs
While maintenance tasks can be predictable, the most costly part of homeownership typically comes with unexpected repairs such as replacing or repairing the roof, fixing loose tiles in the shower, removing an overgrown or dead tree, or paying for mold mitigation in a damp basement. The list of possibilities is endless, so the best thing homeowners can do is to set aside savings for an emergency. Some financial experts suggest budgeting for 1% or 2% of your mortgage balance as a yearly maintenance and repair fund, but the amount you save depends on the age, condition and size of your home.

The Bottom Line
While buying a home may cost a little more than you think, the investment in property can still be worthwhile as long as you buy what you can afford, budget for expected and unexpected expenses and hold onto your home for at least seven to 10 years.

Documents That Is Required For Owning a Home

Owning a home is every individual’s wish. And for acquiring it, certain documents are to be perfectly maintained. Here are some of the mandatory documents you have to hold. This is the difficult part when buying a house.

The things which you have to hold are:

Owning a Home

 

  • Identity Proof
  • Address Proof
  • Age Proof
  • IT Proof
  • Property Documents

1) Identity proof

When it comes to identity proof it can be your passport, PAN card, ration card, driving licence, bank passbook, photograph and an authorized letter from a government official and so on.

2) Address proof

Address proof should basically contain driving license, voters ID, passport, ration card, bank passbook/bank account statement, insurance scheme receipt, service bill which includes telephone, electricity, gas and a reputed letter from your regional officer validating your house on where it is located.

3) Age proof

Age proof is nothing but it has to have the birth certificate of when you were born or your SSLC mark sheet

4) IT proof

Moreover, one of the most important documents along with this is the income tax proof which has a detailed description stating whether you’re a business person or an employee working for a firm.

If you’re a business person or a self-employed, these are the following you should carry,

  • Basic description about your work profile
  • Balance sheet
  • Account statement of your revenues and forfeiture in your business
  • An authorisation for the last 3 years of the income tax from CA
  • Proceeds of the prior and advance tax payments
  • Replicate of the registered credential of the business or industry under the Shops Establishments Act/Factories Act
  • Record for corollary of profession tax
  • Authorization of your business practice
  • Evidence of savings in FD, shares or other funds.

If you’re an employee working for a firm,

  • Your present salary slip or a salary slips which is of consequent 2 months with bank account statement, Form 16, appreciation/ promotion letters, offer letter and a proof of you working in that particular firm and income tax returns for minimum of 3 years.
  • You need to produce your FD receipts and certificates, shares and other assets etc. Further, you need to cater with the details that is backing your financial contextual.

Last but not the least; you also need to submit your property related details such as

  • Flats got from builder and its details
  • Deals – Original document between you and the builder
  • 7/12 extract from the respective officials providing precise details about the survey numbers of your land and date from which it has been registered to the particular individual and etc.
  • Registered card of the property acquired from the City Survey Department
  • A permission for the property is to be obtained from the district collector, if it is a cultivating land which is to be used for building residential/ commercial or industrial purpose.
  • Certificate for search report and title of the project is to be acquired from the legal adviser who will review the title by consulting with the office of the land registrar. This is a mandatory procedure in order to avoid any issues in the future for sale.