All documents do not require registration compulsorily.
The
Transfer of Property Act, 1882 and the Indian Registration Act, 1908
have made registration of certain documents compulsory while in respect
of certain other documents it is optional.
According to section 17 of the Indian Registration Act,
1908 registration of documents .Js compulsory if they relate to an immovable
property. Similarly, Section 54 of Transfer of Property Act 1882, stipulates
that sale of immovable property the value of which is one hundred rupees or
more should be registered. Since no immovable property is available for rupees
one hundred or less than 2. rupees one hundred, implicitly all sale deeds of
immovable property need compulsory registration.
Section 17(1) of Indian Registration Act 1902, deals
with the documents which require registration compulsorily.
They include:
1.Instruments of gift of immovable
Gift is given by the donor to the donee without any
monetary consideration, but only in consideration of love and affection the
donor has towards the donee. Therefore, gift deeds transferring immovable
property of the value of Rs.I00/- and above need registration.
2. Other non-testamentary documents which purport to
create, assign, limit or extinguish the right, title and interest in immovable
property the value of which is more than one hundred rupees need registration.
3. A 11 non-testamentary documents which acknowledge the receipt or payment of any consideration on account of the transactions
pertaining to the creation of any right, title, interest in the immovable
property need registration.
4. property:
All non-testamentary documents transferring or
assigning any decree or order, award of a court, which affect the right, title
and interest in immovable property the value of which is one hundred rupees and
above. need registration The documents may create, extinguish, assign, declare,
limit or restrict the right, title and interest in the immovable property for
the present or future, but if the value of such immovable property is one
hundred rupees or more, the deed needs to be registered.
Though all types of mortgages need registration,
mortgage created by depositing of title deeds, known as equitable mortgage, is
not compulsorily registerable. Mostly, banks and financial institutions use
this mode of mortgage. However, memorandum of deposit of title deed needs
registration.
Section 107 of Transfer of Property Act 1882,
prescribes that lease of immovable property from "year to year" or
for any term exceeding one year or reserving a yearly rent must be done only by
a registered instrument. The phrase from 'year to year', refers to a continuous
lease from year to year, that is, where the landlord has no option to terminate the lease at the end of the year without notice.
Similarly the phrase, "reserving yearly
rents" means that the lease has no definite period, but the annual rent is
determined. The word "yearly" means that the lease should run year
after year or at least more than a year. In general, any lease in excess of one year and above should be registered.
There are certain documents registration of which is
optional. Section 18 of the Indian Registration Act, 1908 lays down the
instruments of which registration is optional. They include:
a] Instruments relating to transfer of an immovable
property, the value of which is less than rupees one hundred;
b] Lease of an immovable property for a term not
exceeding one year;
c] Wills
d] Deed of gift of property valued at less than
Rs.100/-
Time limit for registration:
Under Section 23 of the Registration Act, subject to
certain exceptions, any document other than a will has to be presented for
registration within four months from the date of its execution. Execution means
signing of the document.
If a document is not presented for registration within
the prescribed period of four months and the delay in presentation of the
document does not exceed a further period of four months, then the parties can
apply to the Registrar for registration of the document who may direct, upon
payment of a fine not exceeding ten times the actual registration fees, for
registration of such a document.
A document relating to an immovable property can be
executed out of India and later it can be presented for registration in India.
As per section 26 of the Registration Act, 1908, if a document purporting to
have been executed by all or any of the parties out of India is presented for
registration within the prescribed period of time, the Registering Officer may,
on payment of proper registration fee accept such document for registration if
he is satisfied that the instrument was executed out side India and the instrument
has been presented for registration within four months after its arrival in
India.
The Registering Officer is empowered under sec. 34 of
the Registration Act to enquire whether or not the person is the same by whom
it purports to have been executed such a document. He may insist on production
of proof for his identity and in case any person is appearing as a
representative or agent, the Registrar may ask for relevant documents to show
that the agent or representative has the right to appear on behalf of his
principal.
Section 49 of Indian Registration Act deals with this
situation. It states clearly that such un-registered documents do not convey to
the transferee a legally valid title and such documents are not admitted as
evidence for any transaction affecting the property referred to in the
document. However, there is an exception provided in the Act. The unregistered
documents may be admitted as evidence in a suit for specific performance under
Specific Relief Act.
Documents are mainly registered for conservation of
evidence, assurance of title, and to help an intending purchaser to know if the
title deeds of a particular property have been deposited with any financial
institution or person for purpose of obtaining loan or advance against security
of the property.
Registration of documents acts as notice to the public and to protect themselves against the likely fraud. Therefore, it is advisable
to register all documents connected with the immovable property irrespective of
whether the registration is compulsory or not as it creates a permanent record
of event which are reflected in encumbrance certificates.
As registered documents have higher value of evidence
than unregistered documents it is always beneficial to you if you get all your
property documents registered within the stipulated period irrespective
of the fact that such registration is mandatory or not.
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