Following documents are required for the property registration process in Chennai
- Copy of the document to be registered
- Pan card no of seller for property value more than Rs 5 lacs
- Payment of Registration fees amount
- Payment of sub division fees
- For government properties, a no objection certificate is required.
- Two passport size photograph of both the parties
- If the property is sold for the first time, a no objection certificate is required
- ID proof of both the parties
- Obtain a tax clearance certificate from local tax authorities. A representative of the municipality verifies with local and municipal tax agencies that all taxes and charges payable have been paid up to date.
Process period - Three days.
- Check for existing charges against property charges with the Registrar of Companies. It is a must for the buyer to conduct a search in the local court registry for any litigation, insolvency proceedings against a company, or any charges on the property with the Registrar of Companies. Process period- 2 days.
- An expenditure of Rs.3, 100 is incurred. Rs.50 for public search of document. Rs. 50 for two certified copies Rs. 3,000 for lawyer / accountant fee).
- Check for encumbrances at the office of Subregistrar of Assurance. Conduct a property search in the office of the Sub Registrar, noting the location details of the property and the time period to be checked.
- Verify details to check whether:
- The legal document is in the name of the owner, issued by the Revenue Record Department under the seal of the Tahsildar
- On the date of purchase the title of the owner for the preceding 30 years (preferably) shows no mortgage or other encumbrance as still existing on the date of the purchase
- The property is transferable and heritable
- The transferor is competent and/or authorized to transfer the property.
- The transferee is qualified to be a transferee
- The object of consideration for the transfer is lawful.
- The transfer has been made and completed in the manner prescribed by law.
- The property being sold is free of restrictions for sale under the Urban Land (Ceiling and Regulation) Act (1976) and a clearance certificate for the property has been issued by the ULC (Urban Land Ceiling) Authorities. All land records have been computerized from 1987 onward.
- Prior to 1987, records must be checked manually. Officials of the Subregistrar conduct the searches and issue the Encumbrance Certificate upon receiving an application from the buyer/lawyer. Although a lawyer is engaged to file the application and follow up with the Subregistrar, official fees for an Encumbrance Certificate are Rs.100 per year of search.
- The Encumbrance Certificate can also be obtained online, based on the following fee schedule:
- Application fees: Rs.1
- Search for first year: Rs.15
- Search for subsequent years (per year): Rs.5
- Computer search: Rs.100
- Courier charge: Rs.25.
- Process period: Three days Rs.7,500 (including lawyer fees)
- Pay stamp duty to obtain stamp paper from stamp vendors.
Process Period: Seven days. Rs167,102 is the required fees/cost (6% of the property value for stamp duty + 2% of the property value for surcharge / transfer fee)
- The final sale deed is prepared by the buyer or his lawyer. Though not mandatory, it is common practice for a lawyer to draft the final sale deed.
Process Period: Three days. Lawyer Fees is Rs.7500.
- The Final sale deed should be executed and registered at the Sub Registrar’s office within whose jurisdiction the property is located. The documents and annexes are checked by an officer and a date is set for both parties to sign the instrument of transfer before the Sub Registrar. The Sub Registrar also makes sure that the stamp duty paid is consistent with the value of the property, and receives payment of the registration and execution fees.
- The seller and buyer are required to bring two witnesses, along with the following documents:
- Document required to be registered (in duplicate)
- Two passport-sized photographs of the authorized signatories of both parties
- Photo identification of each party and witnesses, such as a voters’ identity card, passport, or identity card issued by the government of India, semi-government and autonomous bodies, or identification by a Gazette Officer
- Certified true copy of the resolution of the Board of Directors’ of both seller and buyer.
- Certified true copies of the Certificate of Incorporation of both seller and buyer. Items 4 and 5 listed above are mandatory only when the government is a party to the transaction. In all other cases, it is not mandatory
- PAN card must be submitted for registration of documents pertaining to any transaction involving a property exceeding a value of INR 500,000. The documents are submitted to the reader of the Subregistrar of Assurance for scrutiny. After scrutiny, the reader indicates the registration fee required, on the document itself.
- The registration fee is to be deposited with the cashier against a receipt. The value of a given property, determined by the area or zone in which it is located, can be verified from a valuation schedule.
- If the Subregistrar feels that the property has been undervalued, a strategy used to minimize the amount of stamp duty to be paid, he may decide to inspect the site, which can take from 3 to 5 days. This is not often the case.
- After payment of the registration fees, the document is copied into the registry, copies of the document are pasted onto 2 indexes titled “name and property” and “accounts and reports.” The document is delivered upon presentation of the receipt previously issued by the cashier.
Process Period: 17 days and an expenditure of Rs.21, 048 is needed. (1% of the property value + INR 100 for computer charges + INR 60 for Sub-Division of survey number).
- Apply to the Circle Revenue Office for mutation of the property title. The authorized signatory must submit the duly signed application along with an affidavit, indemnity bond, and a certified/notarized copy of the registered title deed. After assessment of the request for mutation, the Revenue Circle Office settles the value of the property tax to be levied and issues a letter of mutation in favor of the buyer certifying that the property has been mutated under the buyer’s name. Land records have been computerized.
Process Period: 18 days Rs.5, 500 (including lawyer fees).
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