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Are you buying a site or property from open market Part B: steps to be followed for registration of the property

 

This is in continuation to my previous article ‘Buying property from open market Part A’. In this article, I have written about the steps to be followed for registration and post registration of the property. Hope this helps.

 

Step 3: Registration of the property:

 

  1. Preparation of Sale Deed tips: get all the page numbers in the format 1/6
  1. Arranging an agent at Sub-Registrar’s Office to assist during registration [tips: the stamp vendors sitting at/around Sub-Registrar’s office can do this work for you
  1. Obtaining DD in favor of Sub- Registrar [presently it is 6.65% at Bangalore] on Sale value as shown in Sale deed 
  1. Obtain DD in favour of Seller. 
  1. In case of Joint Owners – take a DD as per their share in the property; if the Deed is silent about the share, obtain DD for equal amount. 
  1. Read the Sale Deed carefully word by word, sentence by sentence. Make necessary changes before taking the final print of the deed. 
  1. Get the approval of the seller [tips: better to send the sale deed by mail and get the confirmation from the seller]
  1. TDS at 1% of the sale value [if the sale value exceeds Rs.50 Lakhs] on all registrations. 
  1. Carry cash for incidental expenses at sub-registrar’s office if any.

 

Step 4: At Sub-Registrar’s office

 

  1. Handover the sale deed to the agent who assists you in registration. 
  1. He will get this verified by the manager at Sub- Registrar’s Office. After verifying the documents, the Manager will enter the details in a register. 
  1. Submit it to the computer operator/executive to enter the particulars such as name of the seller, buyer, address, property details, etc. 
  1. They will obtain your photo and thumb impression [tips – no need to give photographs at Registration office. However, it is required for obtaining Khata Certificate] 
  1. Once they enter the details, they will give you a draft copy of the deed mentioning buyer and seller name address, property survey and Khata number, etc. [Tips: check them carefully, word by word] 
  1. You have to sign on all the pages of Sale Deed [Tips: The office won’t have a proper place to sit and sign; but don’t be in a hurry, take some time and find a place where you can sit or keep the document properly]. 
  1. After you sign the document, the agent will get it signed by the Sub-Registrar. 
  1. Before you get original the Sale Deed, the document will be scanned and stored in the server. (It is a centralized server and not located at every Registrar’s office). 
  1. Witness – there should be two witnesses who have to sign Sale Deed. Preferably, one person from your side, say the agent who negotiated the deal and one more person from seller’s side.

 

Step 5: Post Registration

 

  1. Wait till you get the signed original sale deed along with latest Encumbrance certificate
    1. Check whether the sale deed is yours!
    2. Check that the deed has all the pages! 
  1. You have to get a photocopy of the deed –
    1. One copy to be given to Sub Registrar’s Office
    2. Second copy to be given to the seller
    3. Third copy to be BDA/Corporation office/Municipal Office for getting Khata certificate
    4. Fourth copy for your records 
  1. Now you can pay your agent. Preferably by cheque and get the receipt signed. If not you can also pay by cash and obtain receipt [tips: take a receipt along with you] 
  1. Original Sale Deed to be kept in safe deposit. If this property is funded by a banker, they will take the original document and give you an acknowledgement for the same. 
  1. Scanned copy can be kept in e-locker or safe cloud storage space. (Tips – banks like ICICI offer e-locker facility]

 

Khata Certificate

 

Wait! The process is not completely over. You have to submit a copy of the Sale Deed, photograph, relevant application form (duly signed) to the Corporation/Revenue Office to get Khata Certificate. 

Again there will be a nominal amount to be paid as fees and a ‘reasonable’ amount to be spent as ‘incidental expenses’

 

Annual Tax

 

After you buy the property, keep paying property taxes annually

Go for site seeing once a while! It is advisable to mark the boundaries of the property, fence it if you can.

 

Thought for the day

 

Everyone loves to buy new things but hate to spend money!

 

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About CA Prasad Chartered Accountant

CA Prasad Chartered Accountant
CA Prasad is a practicing Chartered Accountant and partner in Bangalore -based CA Firm. For further information or query, please email it to [email protected]