Conduct a title search at the office of Sub-Registrar of Assurance
Agency: Sub-Registrar of Assurance
The purchaser should conduct a search of the property in the Registry and the Revenue Office, noting the location details of the property and the time period to be checked. While investigating the title it should be verified.
- The legal ownership document (i.e. the title document) is in the name of the owner and is duly stamped and registered before the concerned sub-registrar of assurances. The revenue record is in the name of the owner, issued by the Revenue Record Department under the seal of the Tahsildar”.
- That 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 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 or consideration for the transfer is lawful,
- The transfer has been made and completed in the manner prescribed by law.
Also, all papers with regard to payment of taxes, the electricity bills and water bills need to be checked.
If the seller is a Company incorporated under the provisions of the Companies Act, 2013 then it is prudent to take search in the office of the Registrar of Companies to verify whether there is any charge on the property registered under the provisions of Section 81 of the Companies Act, 2013.
Time and cost: 4 days, INR 750 (INR 25 per year and search is done over 30 years, the minimum payment is INR 300)
Ensure that property is clear of all local tax dues
Agency: Local authorities
Non-payment of local property tax can result in the property being attached and sold by the local body. The last local tax bill will show the previous dues if any and the receipt of payment will indicate the date on which the payment was made. The receipt is issued by the local body upon receipt of payment.
Time and cost: Less than one day (online), no charge
Conduct charges search at the Registrar of Companies
Agency: Registrar of Companies
In case of companies formed under the provisions of Companies Act, 2013 and/or under the provisions of Companies Act, 1956 as also in case of any Limited Liability Partnership firms, all charges, modification of charges and satisfaction of charges are required to be compulsorily registered with the Registrar of Companies. Searches on the website of the Ministry of Company Affairs can be taken to peruse the charges created.
Time and cost: Less than one day (online), INR 100
Prepare the final sale deed with the purchaser’s lawyer
Agency: Lawyer
The lawyer prepares the final sale deed and then engrosses the document on green paper leaving the date and place blank. This document is then submitted for stamping. The fee for the lawyer varies from transaction to transaction.
Time and cost: 7 days, INR 69,686.44 (About 1% of the property value (About INR 55,000). This includes legal fees for due diligence, drafting the transfer deed and monitoring the registration and mutation process.)
Obtain a certificate for the Tax Deductible at Source
Agency: Income Tax Department (Federal level)
On June 1, 2013, Section 194IA of the Income Tax became effective. This section establishes that a Tax Deductible at Source (TDS) of 1% of the property value should be deducted at source from the amount paid to the seller/transferor of Immovable Property. This provision is only applicable to properties that have a value over INR 5,000,000. Any sum deducted under section 194-IA shall be paid to the credit of the Central Government.
The tax deducted is to be paid electronically on the Income Tax Departments website by filling form 26QB within 7 days from the end of the month in which TDS was deducted. After depositing the TDS with the government, the buyer is required to give the TDS certificate to the Transferor (seller). The TDS certificate is generated within 10 days from the date of deposit of TDS. The purchaser is required to obtain form 26QB and the Transferor is required to obtain form 16B.
Time and cost: 7 days, 1% of the property value to be deducted
Pay Stamp Duty on the final Sale Deed through franking at the designated bank.
Agency: Designated and authorised Banks and Government Revenue Accounting Department for online payment
Since December 2013 stamp duty and registration fees through electronic secured bank treasury receipt (eSBTR)—an online payment service available round-the-clock has been implemented in Mumbai and entire Maharashtra.Under this system, a customer can log onto the website of the authorized bank, click the link for payment of stamp duty/registration fees, enter the necessary details and pay the duty through the internet banking account. With the printout as proof of the online payment, the customer can walk into the nominated branches of the bank to get the eSBTR. The eSBTR is a receipt with security features, which has been designed by India Security Press, Nashik. Alternatively, there is also a facility to make the data entry online and make the payment in bank branches. The sub-registrar then has to register the documents attached with the receipt.
While stamp duty payment can be made online, the e-stamp certificate (proof of payment of stamp duty) is required to be annexed to the sale deed, is required to be physically collected from the authorized bank branches.
Payment could be made
- Online- through credit card, debit card, internet banking for online payment mode.
- Through the process of Simple receipt (receipt printed on A-4 size paper). Payment is made to Banks,stamp vendors and post offices also who issue these receipts. Payments can be made through Cash, Cheque, Bank Draft or through electronic payment.
- ESBTR (Electronic Bank and Treasury Receipt) – Few banks have been authorized to issue ESBTR. Banks accept payment by various modes and then issue these ESBTRs.
Payment through GRAS system- details at https://gras.mahakosh.gov.in/igr/
Time and cost: 1 day, INR 418,118.62 (6% of property value)
Execute final sale deed and submit documents to the local office of the Sub-Registrar of Assurances
Agency: Sub Registrar of Assurances
The execution of the sale deed in front of the 2 witnesses is commonly done at the same time and place where the buyer submits documents to the Sub-Registrar.
The documents are submitted to the office of the Sub Registrar of Assurances within whose jurisdiction the property is located. The authorized signatories of the seller and purchaser are required to be present along with two witnesses. Once the document is registered, a distinct document number is assigned to that document. The record of registration is kept in the office of sub registrar of assurance.
The documents are submitted to the Reader of the Sub-Registrar of Assurances for scrutiny. After scrutiny, the Reader indicates the registration fee required, which is 1% of the transaction value or Rs. 30,000/- whichever is less on the document itself. The due registration fee is to be deposited with the cashier against a receipt. After depositing the fees, the documents are presented before the Sub-Registrar in accordance with Section 32 of the Registration Act, 1908. Normally, the Seller hands over the peaceful vacant and physical possession of the property to the buyer simultaneous to the deed being presented for registration. Upon payment of the required registration fees and computer service charges in cash, as per the receipt, the document is returned within 30 minutes of getting the receipt.
The documentation shall include:
- Document required to be registered (in duplicate)
- Two passport-size photographs of the authorized signatories of both parties.
- Photo identification of each party and witnesses i.e. voters’ identity card, passport, identity card issued by Govt. of India, Semi Govt. and Autonomous bodies or identification by a Gazette Officer.
- Certified true copies of certificate of incorporation of both seller and purchaser.
- Copy of the latest property register card (to be obtained from the City Survey Department) to indicate that the property does not belong to the government
- Copy of the Municipal Tax bill to indicate the year in which the building was constructed
- Copy of PAN Card of Income Tax of the Seller and the Buyer annexed along with the Sale Deed.
The registration fees can be paid e-Challan on GRAS or e-SBTR through the websites of the authorized participatory banks.
Time and cost: 3 days, INR 30,200 (1% of market value of the property (Maximum INR 30,000) + INR 20 per page of final sale deed for scanning charges)
Apply to the Land & Survey Office for mutation of the title of the property
Agency: Land & Survey Office
An application for mutation of the title of the property will have to be made to the City Survey and Land Records office for seeking mutation of the title of the property in the name of the purchaser. The authorized signatory has to submit the duly signed application along with the affidavit, indemnity bond and a notarized copy of the registered Sale Deed. After the assessment of the request for mutation, the City Survey and Land Records office decides the value of the tax on the property and issues a letter of mutation in favor of the purchaser. The Property Card will also be updated.
Time and cost: 23 days, no charge
Apply for name change at Municipal Corporation of Greater Mumbai
Agency: Municipal Corporation of Greater Mumbai
Once the deed has been registered at the land registry and the Property Card updated, the new owner must also update the property record at the Municipal Corporation of Greater Mumbai for tax purposes. This is not automatically done.
Time and cost: 30 days, no charge
