Without getting all the documents in place, the process of your home purchase is not complete. Here is how to register it to become the lawful owner of your home:
What is stamp duty?
Stamp duty is a form of tax levied on any transaction by way of which people create or extinguish any right or liability. Sale deed, gift deed, partition deed, conveyance deed, power of attorney and lease deed are some of the documents on which stamp duty is payable. In real estate, stamp duty forms a major component of costs involved in property registration.
The Indian Stamp Act and the Registration Act govern stamp duty. Stamp duty and registration charges are to be paid to state governments by the buyer while transferring the ownership of property. Being a state tax, rates vary from state to state.
Stamp duty charges and registration fees in most states are paid in the terms of percentage of the total transaction value.Typically, states have higher stamp duty charges for urban areas and offer rebate to women home buyers to encourage their ownership over family assets.
Registration of documentsOnce stamp duty is paid the document should be registered under the Indian Registration Act.
This is done under the jurisdiction of the Sub-Registrar under whose local jurisdiction the property is situated. The basic purpose of registration of documents is to record execution of document. In most of the states, registration fee is around one per cent of the stamp duty. Unless the deeds are registered in the buyer’s name in the government records, the buyer does not become the official owner of the house. An original copy of the registration is kept with the Registrar which can be referred to in case of a dispute.
Property registration procedure Step 1: Estimate the value of your property according to the circle rates in your area.
Step 2: You have to now compare the circle rate with the actual price paid. For paying the stamp duty, the higher of the above two values would be applicable.
Step 3: You will now have to buy non-judicial stamp papers of that value arrived at after the calculation.
Step 4: The stamp papers can be purchased in person or online. You can buy these papers from licensed stamp vendors, whereas e-stamps can be purchased online from www.shcilestamp.com. Stamp duty can be paid through the Collector of Stamps or a proof needs to be submitted, if it is already paid.
Step 5: Now, you have to get the deed prepared and typed on stamp papers. The subject matter varies according to the nature of transaction, which could be sale, lease, mortgage, power of attorney, etc.
Step 6: Now, the transacting parties have to approach the Sub-Registrar’s Office to get the deed registered, accompanied with two witnesses. Each person involved in the process should carry their respective photographs, identification documents, etc. An original copy of the deed, along with two photocopies of the same, should also be carried.
Step 7: After the sale deed gets registered, you get a receipt. About two-seven days after that, one can again approach the Sub-Registrar’s Office to collect the sale deed.
Step 8: Once you have got the original sale deed registered, you can also get the same verified by using the registry details and date from the Registrar’s Office.