5 Registration Facts That You Should Know While Buying A House

By Adhil Shetty | March 16, 2018

It is important to get all the crucial documents in place as buying a house is a big investment decision. Read on.

5 Registration Facts That You Should Know While Buying A House

Buying a house is not an easy task as many formalities need to be completed before you actually own the property. Registration of your property is one such crucial formality which is mandatory to become its lawful owner possessing full rights. Under section 17 of the Indian Registration Act, 1908, registering the documents related to sale, transfer or lease of a property is compulsory. Registration of the property happens in the Registrar’s Offices by the Sub-Registrar.

In this article, we take a look at five important facts that you should be aware of while buying a house.

Verify The Property Title

This is an important aspect of property registration. You must take due care to verify the property title as banks or financial institutions would approve Housing Loans only if the title is clear and marketable. Banks too would take due diligence before granting loans.

If the property is being sold from the developer to the buyer, then you must take appropriate steps to verify the property title. You can even take the help of a lawyer in this case. If it is a secondary sale, then the job to verify the title becomes easier as the first buyer would have taken care to verify the property title and got all the documents ready.

Sale Deed

Once you have located the concerned Sub-Registrar’s office where the property is located, you need to move to the next step of getting the sale deed executed. The signing of sale deed is important as it spells the completion of the sale process. You need to take the help of a lawyer to prepare the sale deed.

You must take care that the schedule of the property is clearly mentioned in the sale deed along with information about the buyer, seller, location of the property, area, sale consideration, etc. Also, if there is any additional structure present on the concerned property, make sure that it is too mentioned in the sale deed along with its cost.

Stamp Duty And Registration Fees

You need to pay stamp duty and registration fees under Section 3 of the Indian Stamp Act, 1899. These charges are made by the state governments to validate the sale deeds and keep a record of it. It is important to pay stamp duty and registration fee to make your sale deed a proper, legal document.

Stamp duty is charged as a percentage of the transaction value. This rate differs from state to state as stamp duty is a State subject. Registration fee is 1 percent of the saleable value of the property.


Once the stamp duty and registration fees are paid and you receive the receipts, you need to visit the Sub-Registrar’s Office to make an appointment for registration. Please make sure you visit the appropriate sub-registrar office to get your property registered.

You need to visit the sub-registrar office in the area where the property is located or in the sub-registrar office of the district where the property is situated. After verification of the sale deed, the registration process is complete under the Registration Act. The sub-registrar will hand you the final sale deed duly and keep a copy of the same.

Mutation Of The Title

There is another step before you register the house in your name. You need to get the title of the property concerned transferred to your name. For that, you need to apply to the local municipal authority. It is called mutation of the title of the property.

You must take proper care to get your property registered when you plan to buy a new house.

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Adhil Shetty

About Adhil Shetty

Adhil Shetty is the Founder and serves as the Chief Executive Officer of BankBazaar.com. Adhil has a Master’s degree in International Relations with a specialization in International Finance and Business from Columbia University in the City of New York, and a Bachelor’s degree in Engineering from the College of Engineering Guindy, Anna University. Adhil is an expert in Personal Finance (Car loan/Home loan and personal loan) and he majorly consults on investment and spends rationalization for the Indian loan borrowers. His guidance is number based with real time interest rate calculations and hence useful for consumer’s real time query.

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