Property Registration In Karnataka

Property registration is the most complicated yet indispensable part of the property buying process. It is obligatory to register the sale deed under Section 17 of the Registration Act, 1908. The Department of Stamps & Registration of the Karnataka Government is responsible for property registrations in Karnataka. Documents associated with the transfer of immovable property must be compulsorily registered in certain circumstances for it to be legally valid and binding. It includes a lengthy step-by-step procedure involving documentation and legalities. It is recommended to take a lawyer or agents help to avoid unnecessary hassles and disputes.

Property Registration Process:

Once due diligence is complete, the sale deed can be prepared by the executant or an Advocate containing the signature/license number/name and address of the stamp paper vendor on the stamp paper along with treasury seal.

The document printed on stamp paper can be registered in the Sub-Registrar office in whose jurisdiction the property is situated or the District Registrar. In Bangalore, the registration of documents can also be done by visiting the office of Inspector General of registration. The buyer requires to register the pertaining documents in order to be the rightful owner and to enjoy the property rights. Below are the guidelines and procedure for hassle-free property registration:

1. Examining encumbrances at the office of Sub-Registrar of Assurances: Buyer needs to thoroughly check the title deed and the lease for any possible encumbrances. The buyer needs to verify that the title deed is registered in the seller’s name with pertaining documents in place. The entire process can take around 5-7 business days and could cost Rs 10,000-15,000. While inspecting this, the buyer must check the following aspects:

• Ownership title must be in the seller’s name. This document bears the seal of the Tehsildar and is issued by the Revenue Record Department.
• Past 25-30 years record must be examined to verify that the property has no encumbrances.
• Ensure that the property is transferable and that the seller is authorized to sell it.
• All property dues are cleared

2. Preparation of the final Sale Deed: The buyer’s lawyer has to prepare the final sale deed of the property. The fee of the lawyer is generally 1% of the property value and the process takes around 5-7 days.

3. Stamp Duty Payment: The buyer has to pay the stamp duty at the designated bank or authorized collection centre for stamping of the Sale Deed. The charges vary from state to state and the state of Karnataka levies 5.6% stamp duty on Ready Reckoner property rates issued by the Government of India annually. Post-payment, the bank issues a receipt and stamps the front page of the Sale Deed with “stamp duty received”. It generally takes 1-2 days to finalize this.

4. Execution of the final Sale Deed at Sub-Registrar’s Office: The buyer, the seller and two witnesses need to be present at the office of Sub-Registrar of Assurances for this process. Once the document is registered with signatures of the above on the stamped deed, a unique number is assigned to the document for future reference.

Next, the document is presented for scrutiny by the reader at the Sub-Registrar office. The registration fee levied is 1% of the property value and has to be deposited with the cashier against a receipt and then the document is presented before the Sub-Registrar. The document is returned to the buyer on the same day. Subsequently, the seller hands over the physical possession of the property and keys to the buyer. The entire process takes a couple of days.

Documents Required:

• 2 passport size photographs, each of the buyer, the seller and the two witnesses
• Photo ID proof like voter’s ID card and passport of the buyer, the seller and the two witnesses
• Municipal Tax Bill copy specifying the year in which the property was built
• PAN Card copy of the seller and the buyer (to be attached along with the Sale Deed)
• Thumb impression and signature of the buyer, the seller and the two witnesses.

5. Mutation of the Title Deed: Mutation is the change in title ownership from the seller to the buyer when a property is sold or transferred. Mutation is mandatory as it enables the new owner to get the property recorded in his name in the Land Revenue Department. It is integral as the government can charge property tax from the official owner.

A buyer can apply for mutation at the office of City Survey and Land Records Department. Buyer needs to file signed application form along with the affidavit, indemnity bond and a notarized copy of the registered Sale Deed. After evaluating the request for mutation, City Survey and Land Records Department decides the property tax and finally issues a letter of mutation in favour of the buyer. The entire process can take about a month and may cost anywhere around Rs 1,000. Post obtaining the letter of mutation, the buyer becomes the rightful owner of the property.