Delhi, the capital of India, is a hub of real estate activities. Buying or selling property in Delhi involves various costs, and one of them is registry charges. These charges are applicable when you register your property with the government. In this article, we will discuss everything you need to know about registry charges in Delhi.
What are Registry Charges?
Registry charges are the fees that you pay to the government for registering your property. When you buy a property, you need to get it registered in your name to establish legal ownership. The process of registration involves several steps, and the government charges a fee for each step. The registry charges vary from state to state, and in Delhi, they are governed by the Delhi Registration Act, 1908.
What is the Process of Property Registration in Delhi?
The process of property registration in Delhi involves the following steps:
- Document verification: The first step is to verify the documents related to the property. You need to submit the sale deed, NOC (No Objection Certificate) from the society or builder, and other relevant documents to the Sub-Registrar’s office.
- Stamp Duty Payment: After the verification, you need to pay the stamp duty, which is a tax levied by the government on the property transaction. The stamp duty varies from state to state and is calculated based on the property’s market value. In Delhi, the stamp duty is 6% of the property’s market value.
- Registration fee payment: After paying the stamp duty, you need to pay the registration fee. The registration fee is 1% of the property’s market value, subject to a maximum of Rs. 30,000. The fee is payable through a demand draft or online payment.
- Document registration: After paying the registration fee, you need to register the property documents with the Sub-Registrar’s office. The Sub-Registrar verifies the documents and records them in the government’s database.
- Possession of property: Once the documents are registered, you can take possession of the property. You need to pay the remaining amount to the seller as per the agreed terms.
What are the Factors that Affect Registry Charges in Delhi?
The registry charges in Delhi depend on the property’s market value, which is determined by the government’s guidance value. The guidance value is the minimum value at which the government can register a property. The registry charges are calculated based on the guidance value of the property. The other factors that affect the registry charges are the stamp duty, registration fee, and legal fees.
What are the Benefits of Property Registration in Delhi?
Property registration in Delhi offers the following benefits:
- Establishes legal ownership: Property registration establishes legal ownership of the property. It provides protection against any disputes or claims by others.
- Enables transfer of property: Registered property can be easily transferred to another person. The transfer of ownership requires only the execution of a new sale deed and payment of stamp duty and registration fees.
- Facilitates obtaining loans: Banks and financial institutions consider registered property as a valuable asset. It facilitates obtaining loans against the property.
- Prevents fraud: Property registration provides a check against fraudulent transactions. It ensures that the seller has the legal right to sell the property.
What are the Documents Required for Property Registration in Delhi?
The documents required for property registration in Delhi are:
- Sale Deed: This is a legal document that serves as proof of transfer of ownership from the seller to the buyer. The sale deed contains details of the property, sale price, and other terms and conditions of the sale.
- Property Registration Form: This is a form that needs to be filled out with the details of the property and the parties involved in the transaction.
- PAN Card: PAN card is mandatory for all transactions above Rs. 5 lakhs. It is used to verify the identity of the buyer and seller.
- Aadhaar Card: Aadhaar card is also required for property registration. It is used to verify the address of the buyer and seller.
- NOC (No Objection Certificate): NOC is required from the society or builder to ensure that there are no dues or pending issues related to the property.
- Power of Attorney: In case the buyer or seller is unable to attend the registration process, they can authorize someone to act on their behalf through a Power of Attorney (POA) document.
- Encumbrance Certificate: Encumbrance certificate is issued by the Sub-Registrar’s office, which confirms that the property is free from any encumbrances such as mortgages, liens, or any other legal disputes.
- Property Tax Receipts: Property tax receipts for the current year need to be submitted at the time of registration.
It is important to note that the documents required may vary based on the type of property and the transaction. It is advisable to consult a legal expert or a property consultant for a complete list of documents required for property registration in Delhi.
