Congratulations on your new purchase! The very fact that you are reading this article indicates that you are either buying a property or already bought one recently. It is extremely important to register your property at the time of purchase to avoid any legal issues in future. We will give the list of steps to follow to complete the registration.
The Registration fee charged by Registration Department of Tamil Naud is exactly 1% of the value of your property. In addition to this, you need to buy stamp paper for the value of 7% of the market value of your property.
Property Due Diligence
Once you have finalized the property and even before entering into a negotiation with the seller, it is crucial to do a complete due-diligence of the property. The first thing to do is to get an Encumbrance certificate to verify the legal issues with the property. Then collect all related documents of the property and hire a legal consultant to verify and assist with the purchase.
Once the due-diligence is completed and you’re satisfied, complete the negotiation with the seller and arrive at a mutually agreeable price. Then based on the market value of the property you need to buy stamp paper. Stamp papers can be bought in the following places
- Stamp Paper Vendors
- The Sub-Registrars Office
- Assistant Superintendent of Stamps
- Stamp Sales Depot @ Rajaji Salai Chennai
Once you have the clearance from due-diligence and acquired stamp papers, the next step is to draft the Sale Deed. It is highly recommended that this is done with the help of a professional. You can hire a licensed document writer to complete this process. A Sale deed can also be prepared by Advocates, Charted Accountants, etc. It is always advised to opt for a reputed and experienced professional to write the sale deed as this is the most important part of the registration.
Once you have sale deed ready, the next step is to approach the Sub-Registrar’s office. You need to have the following documents ready before going for registration.
- Stamp Duty papers with the correct value
- Patta Transfer application
- Pan Card for both buyer and seller
- Patta Passbook
- ID card for buyer and seller
- Sale Deed copies
Once you have everything ready, you need to approach the local sub-registrar office in the area where you are buying the property. It is mandatory that the address of the property falls under the jurisdiction of the sub registrar’s office. All these things will be taken care by the professional/legal consultant whom you hire for due-diligence. Both the buyer and seller along with witnesses should be present in the sub registrar’s office at the time of registration without fail. Once the process is done, they will return all the documents on the same day or within 3 days of the registration.
It is critical that you complete the registration of the property as soon as the sale deed is executed. Any delay will incur a penalty. The maximum time allowed is 4 months after which you cannot register. Please verify that all the documents that are given back by sub registrar’s office are correct and registered. If you have taken a bank loan for the property the documents will be sent to the bank directly.