00:00Hi everyone, I'm advocate Urdhud Kapoor working as a legal associate at NRI Legal Services.
00:07Registration of an immovable property is both a statutory and a prudent practice that is eminent for transfer of property
00:15in India.
00:16The burden for registration of an immovable property lies on the buyer.
00:21Therefore, today I will apprise you with the steps involved in the registration of an immovable property purchased by a
00:29non-resident Indian, i.e. an NRI.
00:32Before we look into the steps involved in the registration of a property, it is important for us to focus
00:38on
00:381. What is the criteria of a non-resident Indian?
00:422. An acquisition of an immovable property by an NRI
00:473. The essence of registration
00:494. What are the consequences for non-registration of an immovable property?
00:565. What is the registration fees involved?
01:006. What is the time limit for registration?
01:036. Who is a non-resident Indian?
01:07In layman language, an Indian citizen residing outside India for business, employment or any other purpose
01:15for indefinite period of time is regarded as non-resident Indian.
01:20However, the statutory status of a non-resident Indian is ascertained under the FEMA Act and the Income Tax Act.
01:30As per the FEMA Act, an individual's residential status is ascertained on the basis of that individual's intention to stay
01:39in India.
01:407. In a recent amendment, the number of days under the Income Tax Act have been reduced from 182 days
01:56to 120 days.
01:588. Therefore, if you are residing outside India and are not covered under any of the two concepts being explained,
02:06you will automatically be deemed as a non-resident Indian.
02:109. Now, we will discuss about acquisition of an immovable property by a non-resident Indian.
02:17It is a common misconception that being an Indian citizen, a non-resident Indian is permitted to buy any sort
02:25of immovable property.
02:27However, according to the Reserve Bank of India's Master Circular on Accusation and Transfer of Immovable Property by NRI, PIO
02:39or Foreign National,
02:41an NRI is strictly restricted from buying any agriculture land, farmland or plantation land.
02:49However, this does not mean that an NRI who has an existing ownership or in a newer future may be
02:58given an ownership based on succession to such properties will be restricted on null and void.
03:07Furthermore, an NRI does not require any sort of special permission or permission from Reserve Bank of India to purchase
03:15any number of residential or commercial properties in India.
03:20Now, we will discuss about a sense of registration.
03:24Registration process and other intricacies thereto are governed under Registration Act.
03:29To understand the registration process better, it is important for us to understand the constitutional intent behind it.
03:36The Apex Court in the matter Suraj Industries Pvt Ltd versus State of Haryana and others duly observed that the
03:45Registration Act came into being in order to provide orderliness, discipline and public notice for all the transactions relating to
03:56immovable properties and further preventing any sort of forgery.
04:00Registration
04:01Furthermore, once a document is registered, it becomes a public document as it is available readily in the public domain.
04:09Such a public document acts as a caveat towards the general public in regards to any legal rights that are
04:17arising out of or affecting an immovable property.
04:20Registration
04:21It would further prevent any sort of misrepresentation or forgery of documents.
04:27Now, the question remains, are all documents required to be compulsorily registered?
04:33The answer to is no.
04:35The documents which are covered under Section 17 are compulsorily required to be registered.
04:40Therefore, it is to be taken into account all the documents that relate with transfer and sale of an immovable
04:48property and are more than a constitutional amount of Rs.100 and are not testamentary instruments are required to be
04:57compulsorily registered.
05:00This would include documents such as sale deed.
05:04Now, there are certain documents that do not require compulsory registration and are covered under Section 18.
05:10Such documents include wills, power of attorney and even agreement to sale.
05:16Now, we will discuss about what are the consequences of non-registration.
05:21As discussed earlier, there are certain documents which are compulsorily required to be registered and opting out of the same
05:28would incur a particular individual legal injury.
05:33By, first of all, invalidating the legitimacy of any transaction that has consequent sale or transfer of a property.
05:44Secondly, invalidating the evidential value of this particular transaction in the eyes of the court.
05:51And lastly, it would pave path for misrepresentation and fraudulent activity.
05:57Now, we will discuss about the stamp duty.
06:00A buyer is bound to pay a certain amount in form of tax levied by the state government to generate
06:08revenues.
06:10This is usually a small percentage of the saleable value of the property that amounts to, in most states, 1
06:18% of the value of the property.
06:21Now, we will discuss about time limit for registration.
06:24The time limit for registration of any compulsorily required document under the Act is within 4 months from the date
06:33of execution of such a document.
06:36If it happens to be so that you are not able to register this particular document in the stipulated time
06:42period, you are still given the time to register this particular document in succeeding 4 months.
06:48Now, if you are not able to register the documents in succeeding 4 months too, yet you are given an
06:55opportunity to register this particular document by
06:58by enacting a confirmation deed along with a stamp duty paid on the current market value.
07:06This document would further be taken to adjudication before the collector and then would be registered by the joint sub
07:14-registrator.
07:15Therefore, it is recommended that rather than taking this expired document which has already passed 8 months from the date
07:22of execution, you shall prepare a fresh document.
07:27Now, we will be discussing about what are the steps that are involved in the registration of an immovable property
07:34that has already been purchased by a non-resident Indian.
07:38All documents in regards to sale and transfer of immovable property are to be presented before the sub-registrar's office
07:48in whose sub-district the subject property is located.
07:52It is to be noted that it is the discretion of the officer at this sub-district's office to be
08:01present in any residence of an individual who desires to register a document with regards to an immovable property.
08:08Furthermore, such documents require proper representation before the sub-registrar.
08:14Therefore, the buyer, the seller and the legal representatives have to be physically present before the sub-registrar's office.
08:23In case of a legal representative or an assignee, a proper power attorney has to be produced before the sub
08:33-registrar.
08:34Now, in case where the vendor dies signing a particular document which is pending registration, the document can still be
08:43registered provided the legal errors have been implemented by the purchaser in the following manner.
08:49First, you can move an application in the honourable court for ad probate or an order that tends to impede
09:00the legal errors to represent the demised vendor before the sub-registrar.
09:06Secondly, you can prepare a deed of fact that entails all the facts in regard to the demised vendor.
09:13This deed has to be duly signed by the purchaser and the legal errors and once it has been done
09:20so, the sub-registrar's office would deem this as to be a proper document for registration.
09:27Now, the authorised signatories have to present a proof of identity which includes PAN card, Aadhar card or any such
09:36document that has been authenticated by the government as a proof of identity.
09:40In addition to these documents, original documents that have consequent transfer of the immovable property such as CLT and a
09:49proof of stamp duty and other requisite documents are to be presented before the sub-registrar for a successful registration
09:57of the immovable property.
09:59Hence, given a discussion, it can be concluded that the registration of all the documents related to immovable property is
10:10compulsory in nature.
10:11And further, the steps involved in the registration requires a good understanding of the legal intricacies.
10:18Therefore, I would advise that a proper legal assistance shall be taken for registration of an immovable property.
10:26I hope you found this video insightful and informative.
10:31If you have any query, please feel free to write us at query at the rate nilegalservices.com.
