Faqs

FAQ

Issues on all kinds of Building, land and property Legal Q & A PART I

August 2001

After document is executed within how many days it has to be registered?

A document should be registered within four months from the date of its execution.  If the document is not registered within the said period of four months it can still be registered.  For that an application has to be made to the Sub-Registrar and a penalty as per the applicable rule has to be paid. Thereafter it can be registered.

Can a Sub-Registrar register a document oat hospital or private house?

There may be cases where a person is old, sick or unable to walk.  In such cases, the document executed by him can be registered at hospital or private house.  For this purpose an application has to be made to the Sub. Registrar and the prescribed feed have to be paid.  Thereafter the sub-Registrar is duty bound to visit the premises of the person and complete the registration formalities.

Is it necessary or compulsory to register a Will?

Under Section 18 of the Registration Act, registration of a Will is not compulsory.  However, it is advisable to register a Will.  Once a will is registered, it is a strong legal evidence for it naturally gets an impression that the same is most authentic.

If the Sub-Registrar refused to register a document, what is the remedy?

A Sub-Registrar has no power or authority to refuse registration of a document, if all the required formalities are completed with.  If the Sub-Registrar refused to register a document, he must be asked to endorse the refusal in writing and he is obliged to make his endorsement giving reasons for such refusal.  After obtaining the endorsement, an appeal to the district Registrar can be filed within 30 days from the date of the order of refusal made by the Sub-Registrar.  The District Registrar has the power to …… all the concerned parties for the purpose of enquiry into the issue and takes evidence from all the relevant parties. Thereafter the District Registrar passes an order either to register the document or not to register the document.

How can stamp duty and registration fees be paid?

Stamp duty can be paid by non judicial stamp paper or by pay order/demand draft and registration in cash or pay order/demand draft in favour of the concerned judicial registrar.

When clearance under section 37-1 of the Income Tax Act is required form the appropriate authorities?

If the value of the immovable property to be purchased is more than Rs. 25 lakh, it is necessary to apply for clearance under Section 37-1 of the Income Tax Act within 15 days from the date of the agreement. The said clearance is necessary for the purpose of registration of the property in favour of the purchaser.

Is it necessary for an NRI intending to purchase an immovable property in India to obtain prior permission from the Reserve Bank of India?

An NRI can purchase two immovable properties without any permission from the RBI.  The   Reserve Bank has granted the general permission in this regard,

If a foreign citizen of Indian Origin purchases an immovable property in India, in what manner can the sale consideration price be paid?

The sale consideration price to be paid should be either out of the inward remittance in foreign exchange made through the normal banking channels or out of the funds from NRE or FCNR accounts maintained by him with the banks in India.

If a foreign citizen of Indian Origin purchases an immovable property in India, in what manner can the sale consideration price be paid?

The sale consideration price to be paid should be either out of the inward remittance in foreign exchange made through the normal banking channels or out of the funds from NRE or FCNR accounts maintained by him with the banks in India.

November / December 2001

Is it compulsory to register an “Agreement to Sell” entered into with the seller of an immovable property?

It is not compulsory to register an agreement to sell entered between the seller of an immovable property and its buyer.  Only the Sale Deed is required to be registered.  Though optional, it is advisable to register the Agreement to sell.  The reason is, once it is registered, the buyer’s name will get entered in the encumbrance records. The property will be a change for the advance amount paid to the sellers.  It will not be possible for the sellers to cheat the buyer easily.  The cost of registering an Agreement to sell is very nominal.  Applicable stamp duty is Rs. 200/- only.

What is the appropriate stamp duty payable on Rental Agreement at Bangalore?

Stamp duty payable on Rental Agreement for a period below one year is Rs. 50/- and above one year it will vary depending upon the number of years as under:

  1. Above one year not exceeding five years @ 5% on the average Annual Rental rate.
  2. Above five years but not exceeding ten years @ conveyance on twice of the average Annual Rental rate:
  3. Above ten years but not exceeding twenty years @conveyance on thrice the average annual rental rate.
  4. Above twenty years but not exceeding thirty years @ conveyance on four times the average Annual rental rate.
  5. Exceeding thirty years@ conveyance on prevailing market value

Is it necessary to register a General Power of Attorney (GPA)?

Stamp duty payable on Rental Agreement for a period below one year is Rs. 50/- and above one year it will vary depending upon the number of years as under:

  1. Above one year not exceeding five years @ 5% on the average Annual Rental rate.
  2. Above five years but not exceeding ten years @ conveyance on twice of the average Annual Rental rate:
  3. Above ten years but not exceeding twenty years @conveyance on thrice the average annual rental rate.
  4. Above twenty years but not exceeding thirty years @ conveyance on four times the average Annual rental rate.
  5. Exceeding thirty years@ conveyance on prevailing market value

Is it necessary to register a General Power of Attorney (GPA)?

Stamp duty payable on Rental Agreement for a period below one year is Rs. 50/- and above one year it will vary depending upon the number of years as under:

  1. Above one year not exceeding five years @ 5% on the average Annual Rental rate.
  2. Above five years but not exceeding ten years @ conveyance on twice of the average Annual Rental rate:
  3. Above ten years but not exceeding twenty years @conveyance on thrice the average annual rental rate.
  4. Above twenty years but not exceeding thirty years @ conveyance on four times the average Annual rental rate.
  5. Exceeding thirty years@ conveyance on prevailing market value

In whose name shall a non judicial stamp paper be bought for the purpose of documentation?

A non judicial stamp paper shall be bought in the name of a person who is a party to the instrument.

What will happen to the validity of a document if the stamp duty paid is insufficient?

Insufficiently stamped document is treated as a document “not properly stamped”.  It is inadmissible in evidence in court of law, and hence such a document is liable to be impounded and sent to the stamp duty authority for recovery of appropriate stamp duty along with penalty.

What will happen to the validity of a document if the stamp duty paid is insufficient?

Insufficiently stamped document is treated as a document “not properly stamped”.  It is inadmissible in evidence in court of law, and hence such a document is liable to be impounded and sent to the stamp duty authority for recovery of appropriate stamp duty along with penalty.

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