Property Registration

FAQ: Real Estate Transactions and Title Search

Is it necessary to register a sale deed?

Registering a sale deed makes it a public record that the property has been transferred from the seller to the buyer. It also legally confirms the buyer’s ownership and protects against ownership disputes

Who can register a sale deed?

The buyer or seller can write the sale deed and present it for registration

What documents are required for registration?

Signed sale deed – Parent documents
Identity proof for both parties, such as an Aadhaar card, passport, or driver’s license
Address proof for both parties, such as utility bills or rental agreements
Property title deed
PAN card for financial transactions over a certain threshold
Witnesses aadhaar details
Current Encumbrance certificate of the property.

Can I register the land I bought earlier but did not register?

The document should be presented for registration within four months of the date of execution. The District Registrar may condone a delay of up to four months.

What are the safety measures while buying property? How can I avoid legal disputes?

Conduct a title search to ensure the seller has clear ownership
Verify the property’s title and ownership history (e.g. loans or disputes) by checking the encumbrance history of the property
Ensure clear property boundaries and have a registered sale deed in your name.
Execute legal wills and partition deeds to avoid future inheritance conflicts whenever necessary
Ensure that the patta is transferred to your name immediately after the sale is registered or immediately after the inheritance (in case of inheriting the property)
Ensure that property taxes and electricity connections are transferred to your name and other dues are paid up to date.

What is an encumbrance (EC) on property, and how does it affect a sale?

An encumbrance refers to any legal claim or liability attached to a property, such as unpaid loans, mortgages, or legal disputes. If a property has an encumbrance, the buyer may face complications, such as being liable for outstanding dues or losing rights over the property.

How can I check if a property has any legal disputes or encumbrances?

Conduct a title search at the local registrar’s office. You can also obtain an Encumbrance Certificate (EC), which provides details of all transactions, and any outstanding mortgages or disputes linked to the property.

What happens after the land sale deed registration is complete?

After registration, you will receive a registered sale deed, which serves as proof of your ownership. You should then proceed with the mutation of the land records in your name with the local revenue authorities.

What is the importance of obtaining a certified copy of the sale deed?

A certified copy of the sale deed is a true copy issued by the Sub-Registrar’s office. It serves as legal proof of ownership and can be used for various purposes, such as obtaining loans or applying for utilities.

Can I track the status of my sale registration online?

Many states now offer online portals where you can track the status of your sale registration application using your application number or property details.

I have aged parents who cannot travel. We are planning to sell a family property in another Indian state. How can we carry out this transaction?

If your parents are unable to travel due to health reasons, they can execute a Special Power of Attorney (SPOA), appointing a trusted family member or individual to act on their behalf. The SPOA must be signed and notarized in the state where your parent resides and then registered in the state where the property is located. The appointed agent can handle the sale and registration of the property in another state.

I own property in a different state but can’t travel due to health issues. How can I manage the sales?

You can appoint a trusted individual as your agent using a Special Power of Attorney. The SPOA can be executed in your current jurisdiction, allowing your agent to handle the sale and complete necessary transactions without your physical presence.

FAQ: Issues and Mitigation

What happens if there are errors in the sale deed?

If errors are discovered in the registered sale deed, you’ll need to get them rectified through a rectification deed. This involves submitting an application to the Sub-Registrar’s office with supporting documents and paying the required fees.

Can I cancel the registered sale deed?

Canceling a registered sale deed is complex and requires a strong legal basis, such as fraud, misrepresentation, or coercion. You’ll need to file a civil suit in court to seek cancellation.

What would happen if I lost the original sale deed?

If you lose the original sale deed, you should file an FIR at the nearest police station and get a Non traceable certificate.

FAQ: Complexities

Can I register a property in the name of a minor?

Yes, you can register a property in the name of a minor, but a legal guardian (usually a parent) will need to act on their behalf during the registration process

Is it advisable to buy litigation property?

It’s generally not recommended unless:

You have high-risk tolerance.
You have the financial capacity to handle potential legal costs and delays.
You are willing to wait for an uncertain period for the case to be resolved.
You have conducted thorough due diligence and obtained expert legal advice.

What are the risks involved in buying bank auctioned land?

Auctioned properties are often sold “as is,” so you might need to invest in repairs or renovations.
There could be outstanding dues like property taxes or utility bills associated with the property.
The property might be occupied by the previous owner or tenants, and eviction can be challenging.
While rare, there’s a possibility of pending legal disputes related to the property.

Can I register the land with joint names?

Yes, you can register the land in joint names with another person or individuals. This establishes co-ownership with specified shares or rights

Is it safe to buy mortgage plots?

Yes, buying a mortgage plot can be a safe investment if you do your homework. Thoroughly research the property’s history, verify ownership and title deed, and conduct a land survey to ensure there are no legal issues. It’s crucial to investigate the loan details, including any outstanding debt, and obtain a No Objection Certificate (NOC) from the lender confirming their approval for the sale.

Can I register a sale deed if the seller is an NRI?

Yes, an NRI can sell a property in India. They can either be physically present during the registration or execute a Power of Attorney in favor of a trusted representative to act on their behalf

FAQ: Non Resident Indians

I’m an NRI residing abroad. I want to buy property in India, but I cannot travel. What are my options?

As an NRI, if you cannot travel to India for a property transaction, you can execute a Power of Attorney (POA) to appoint a trusted individual, such as a family member, to act on your behalf. This allows them to complete the property purchase and registration in India.

As an NRI, will I be able to buy agricultural land in India?

No, as an NRI, you are generally not permitted to purchase agricultural land, plantation properties, or farmhouses in India. NRIs are allowed to buy residential or commercial properties. For agricultural land, special permission from the Reserve Bank of India (RBI) is typically not granted.

Can I buy property in India as an NRI by appointing a relative to handle the registration through a General Power of Attorney?

Yes, you can appoint a relative as your agent through a GPA to complete the property purchase in India. After notarization by the notary officer in your country, the GPA needs to be registered in India, allowing your relative to complete the property transaction on your behalf.

Can NRIs sell property to other NRIs or foreign citizens?

Yes, NRIs can sell residential and commercial properties to other NRIs or foreign citizens. However, they cannot sell agricultural land, farmhouses, or plantations to another NRI or a foreign citizen.

How can NRIs receive the sale proceeds?

Non-Resident External account, a rupee-denominated account maintained in India.
Non-Resident Ordinary account, another rupee-denominated account that can hold both incomes earned in India and funds transferred from abroad.
Foreign Currency Non-Resident account, an account maintained in foreign currency.

What are the tax implications for NRIs selling property in India?

NRIs are liable to pay capital gains tax on the profit earned from the sale of property. The tax rate depends on the holding period:
Short-term Capital Gains: If the property is held for less than 2 years, the gains are taxed at the individual’s income tax slab rate.
Long-term Capital Gains: If the property is held for 2 years or more, the gains are taxed at 20% with indexation benefits.

How can NRIs ensure a smooth sale registration process?

Start the process well in advance to allow sufficient time for documentation and other formalities.
Engage legal expertise specializing in property law and NRI matters to guide you through the process.
If you cannot be present, execute a POA in favor of a trusted representative.
Consult a tax advisor to understand the tax implications and comply with regulations.

Can NRIs appoint a Power of Attorney for sale registration?

Yes, if an NRI cannot be physically present in India for the registration, they can execute a POA in favor of a trusted person (e.g., a relative, friend, or lawyer) to act on their behalf.

The POA should be properly drafted and registered.

** the answers provide above are generic questions we've received from our clients. We advise you to contact an advocate and get a legal advice for your situation before proceeding with any further actions.

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Vidya Devarajan
B.Sc., L.L.M, Master's in Cyber Law
Advocate at High Court of Madras

Trusted Legal Advisor for NRI's

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