Owning a property might not be as daunting as it typically sounds if we are aware of the steps to be followed. The process of a home purchase is incomplete if you do not have all the documents in handy. Here is how you can register it for you to become the lawful owner of the house.
What is Stamp Duty?
Stamp duty is a kind of tax levied on all types of transactions through which people create or end any right or liability. Sale deed, partition deed, gift deed, conveyance deed and power of attorney are a few of the documents where on stamp duty is payable. In real estate sense, stamp duty comprises a crucial component of expenses involved in property registration.
The stamp duty is governed by Indian Stamp Act and the Registration Act. These duty and registration charges are meant to be paid to the state government through the buyer when transferring the ownership of his property. Since a state tax is applied, rate shall vary from state to state. In the majority of the states, stamp duty charges and registration fees are paid based on the percentage of the overall transaction value.
Generally, states charge a higher stamp duty for urban areas while also offering a rebate to women purchasers in order to encourage ownership to them.
Registration of Property Documents
Once the stamp duty is paid, it will officially be registered under the Indian Registration Act. It is performed under the jurisdiction of Sub-Registrar who holds the local jurisdiction of property.
The prime purpose to register the documents is for having a record of the execution of the documents. The registration fee in the majority of the states is about 1% of the stamp duty. So the buyer will not become the house’s official owner unless the deeds come registered in the government records in the buyer’s name.
The Registrar keeps an original copy of the registration which can be visited again as in case of any dispute.
Property Registration Procedure
- Estimate the property’s value based on the circle rates in your state.
- Then, you will have to compare the actual price paid with the circle rate. The ulterior of the above mentioned two values will be applicable to pay the stamp duty.
- You would now have to make a purchase of non-judicial stamp papers that are of the value we arrived at post the calculation.
- You can purchase the stamp papers in person or online. These stamp papers can be purchased from licensed stamp vendors while e-stamp papers are readily available for purchase online from several platforms. Pay stamp duty through the Collector of Stamps or if you have already made the payment, be sure to have a proof.
- Now, you have to possess the deed that has been prepared and typed on stamp papers. The subject matter will vary based on the nature of the transaction, such as sale, mortgage, power of attorney, etc.
- The transacting parties, along with two witnesses, now have to knock the Sub-Registrar’s Office in order to get the deed registered. Each individual involved in the process must carry their respective identification documents, photographs, etc. You should also carry one original copy of the deed and two photocopies of the same.
- You will receive a receipt once the sale deed is registered. About 2-7 days post that, you can again speak with the officials of the Sub-Registrar’s office to grab the sale deed.
- After you are done with the registration of the original sale deed, you shall also get it verified by making use of the registry date and details from the Registrar’s Office.
How Can We Help You?
If you are located in and around the areas of the ever-fascinating Gurgaon, International Land Developers is the real estate company that will satisfy and exceed all your real estate needs and requirements. With more than two decades of experience, ILD has found itself in this place to exceed the satisfaction of the customers.
Some popularly known projects of ILD in Gurgaon are ILD Grand Centra, ILD Grand and ILD Trade Center.
ILD has its presence in residential, commercial, industrial and retail destinations for serving a vast pool of customers. This real estate company meets all your requirements whether it is with regards to a residential property or when you are opting for an office space in Gurgaon / Sohna Road. Don’t wait any further! Visit ILD’s official website to get a quote today!