Compulsorily registerable property documents
AII 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.
Compulsorily registerable Documents:
Section 17(1) of Indian Registration Act 1902, deals with
the documents which require registration compulsorily. They include:
1.Instruments of gift of immovable 4. property:
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 receiptor payment of any consideration on account of the transactions pertaining to
the creation of any right, title, interest in the immovable property need
registration.
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, prescribesthat 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.
Documents where registration is optional:
There are certain documents registration of which isoptional. 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 documentdoes 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 [Sec.25].
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.
Enquiry by the Registering authority:
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.
Effect of non-registration:
What would be the repercussion if a document which is compulsorily registerable
is not registered?
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 ofevidence, 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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