Buying or selling real estate is not an easy financial decision to make, and ensuring that everything is legally airtight is very crucial. That’s where The Registration Act, 1908 comes in handy. It’s a law designed to safeguard property transactions and prevent fraud so you can have peace of mind. Continue reading to see why this Act is a cornerstone of the Indian property market.

Why is Property Registration important?

Let’s say you’ve been eyeing a property for years and it finally is on the market so you immediately buy it. But you never register it. One fine day, a stranger shows up claiming it’s theirs. Now you’re in big trouble!

So what happens when you register a property?

  • You’re officially recognized as the owner. This document is proof of your rights and can stand up in any court.
  • Your property details are on record, making it nearly impossible for someone to sell or claim it without your knowledge.
  • Registration gives your transaction the legal weight it needs unlike unregistered documents, which are useless in disputes like a contract with no signature. 

 

What does The Registration Act, 1908, say?

Here are a few points that briefly explain how the Act makes property transactions transparent and enforceable.

Mandatory Registration :

As per Section 17, documents like sale deeds, leases over a year, and mortgages must be registered.

Timeframe :

Under Section 23, you must register your property documents within four months of signing them. Procrastinating on this is definitely not on the cards.

Jurisdiction :

The registration itself will have to be done at the nearest Sub-Registrar’s office in the property vicinity.

Why Registration can’t be ignored: Ghanshyam v. Yogendra Kumar Sharma (2023)


Ghanshyam, the buyer, and Yogendra Kumar Sharma, the property owner agreed to sell an immovable piece of property. They detailed an agreement, all the paperwork was completed and everything seemed to be in order. 

After a while Yogendra had a change of heart and decided not to sell the property after all. This didn’t go well with Ghanshyam who was under the impression that he already owned the property since both parties had come to a concensus.

So far Ghanshyam’s case seems strong. Despite doing everything right, he is met with a curveball. It should be an easy win at the court right? Well, there was one major oversight – nobody registered the agreement at the Sub-Registrar’s office.

The matter eventually reached the Supreme Court where the judges had to address a critical question: Does an unregistered agreement to sell give the buyer legal ownership of the property?

The Supreme Court delivered a verdict in favor of Yogendra Kumar Sharma, stating that an agreement to sell, by itself, cannot transfer ownership of property—especially if it is not registered.

The Court clearly stated that any paperwork done during property transactions is nothing but preliminary steps. For a legal ownership transfer, a registered sale deed is required under the Registration Act, 1908.

The Court’s ruling was a stern reminder to everyone involved in real estate transactions. Skipping registration might save time or money in the short term, but it can lead to costly legal disputes down the road.

Steps to register your property

Step 1: Gather all necessary documents including the sale deed, property tax receipts, identity proof, and address proof of both parties. Make sure to consult a lawyer to draft the sale deed with details of the transaction terms. 

Step 2: Based on your property value, you will be required to pay a stamp duty and fees. The cost will vary by state.

Step 3: Visit the Sub-Registrar’s office to finalize the registration. This is most crucial. Both parties (buyer and seller) and two witnesses must be present during this process.

Step 4: The documents will then be submitted for verification and once verified you will receive a registration certificate.

 

Risks of Skipping Registration

Skipping registration might seem like a shortcut, but it can land you in serious trouble as seen above in the case of Ghanshyam v. Yogendra Kumar Sharma (2023).

  • Without a registered document, you have no legal proof of ownership
  • Unregistered properties are vulnerable to multiple sales or false claims
  • If your property isn’t registered, potential buyers may walk away, or worse, you could face legal challenges.

Why does this Act matter for buyers and investors?

If there’s one thing that gives your investment the ultimate seal of approval, that’s
the Registration Act, 1908. Once you register your property, no matter who you are, you will be protected under the law. There may be frauds that still try to intimidate you, but you can be confident that the law is on your side.

Invest in Purva Land 

While all of this can sound overwhelming, the joy of owning your own land is incomparable. At Purva Land, we make sure to guide you through the whole process to make it a seamless experience. From documentation to registration, we’ll be by your side, helping you secure your dream plot. Trust Purvaland to help you invest with confidence, because your peace of mind is our top priority.

 

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Call 080 4455 5531 or visit www.purvaland.com for more details.

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