KNOWLEDGEBASE

NRI Guidelines:

The Indian economy and the real estate sector in particular are high on its ride to prosperity. As India's economic growth curve rises, real estate India has emerged as one of the most appealing investment areas for domestic as well as foreign investors. Indian real estate has huge potential demand in almost every sector, but especially commercial, residential, retail, industrial, hospitality, healthcare etc. But maximum growth is attributed to its growth from the booming IT sector, since an estimated 70 per cent of the new construction is for the IT sector.

Investment scenario has certainly undergone a paradigm shift in India. Gone are the days when potential investors used to sought after investment options like equity bonds and park money in shares where your return ranges between 5.55 to 6%. Data showcased by property surveys show that returns from rental incomes on investment in commercial property in Indian metros, is around 10.5%, the highest in the world.

Key Facts
Selling and buying Indian property is now considered as the most profitable and attractive business opportunity in the present real estate scenario in India.

New demands have added to strength of real estate markets across the commercial, residential and retail sectors in India. Not surprisingly, demand for Indian property has been increasing steadily for the past few years and it has exceeded supply.

There has also been an upward swing on the real estate price values in the recent years. Due to the huge demand and rising prices, investment and speculative interest in real estate is growing while excess money supply, stock market gains and policy changes are adding to the trend in favor of the real estate sector.

In the last one year, the capital values of the commercial office spaces has increased by up to 40% owing to the increase in the demand from IT / ITES and BPO sector across major metros in India.

India has a distinct regulatory and financing management in place.

Real estate boom in India is supported by its own flourishing economy on a sustainable basis. Here, growth of the property market is not a result of renovation and overhauling; but rapid development that witness for India riding the high growth wave.

NRI Faqs:

Stamp Duty:

Registration is the process of recording a copy of a document, transferring the title in immovable property to the office of the Registrar.

Registration acts as proof that a transaction has taken place.

The registration of a document serves as a notice of the transaction, to the persons affected by the transaction. Registration also serves as an implied notice to any person subsequently acquiring interest in the property, covered by the registered document.

When a document, which is compulsorily to be registered, is not registered, it fails to confer any title given by the document.

The real purpose of registration is to ensure that every person dealing with property for which compulsory registration is required, can confidently rely on the statement contained in the register, as being a full and complete account of all transactions by which the title may be affected. A certificate of Registration is mere evidence that a document has been registered. It is not proof that it has been executed.

When the execution of a document is directly in dispute between two parties, the fact that the document is registered is not sufficient to prove its genuineness. Registration does not automatically dispense with the necessity of independent proof that the document was executed.

Registration is done after the parties execute the document. The agreement should be registered with the Sub-Registrar of Assurance under the provisions of the Indian Registration Act, 1908 within four months from the date of execution of the document. However, if due to any unavoidable circumstances, the document is not registered within the time limit, then the document can be registered only on making an application to the Sub-Registrar of Assurance within a further period not exceeding four months and on payment of appropriate fine.

If you have always wondered what registration involves, read on

The Sub-Registrar of Assurances does the following:-

Is registration compulsory for all types of transfer of immovable properties?

Except in case of transfer of shares of a co-operative housing society and housing limited company where registration is optional, virtually in all cases of transfer of immovable property like family arrangement, agreement to sell, conveyance, gift deed, lease deed (above one year), leave and license agreement, tenancy agreement, declaration deed, power of attorney to sell for consideration etc. has to be registered compulsorily under Indian Registration Act,1908 otherwise the proper legal title will not pass on to the purchaser/transferee i.e. the title will be defective if registration is not done.

In what languages should the document be written so that it can be registered in Mumbai?

It should be normally be written is English, Hindi, Marathi and Gujarati only.

After how long is the document given for registration returned?

Documents lodged for registration prior to October 1, 1995 are sent to Pune, after it is indexed, for microfilming and only then it is returned to the party, which may take a few years. All the documents lodged for registration on or from October 1, 1995 are returned to the party within a few days of indexing the same because only the photocopy is sent to Pune for microfilming. After February 1, 2002 when the registration process was computerized, normally the documents have been returned within half an hour.

Why does it take a long time for documents to be returned in old cases?

The above mentioned procedure is one of the reasons but the major reasons due to which the document remained pending at the office of sub-registrar and not being indexed and not returned to the Owner are as follows:-
The above deficiencies were always pointed out at the time of registration by way of remark (such as MV, 230A, 37-1, NOC, ADM) on the registration receipt itself but due to ignorance, owners have never cared to clear them and hence documents which do not have deficiencies mentioned in the points mentioned above. However deficiency relating to non-admission is tolerated and the document is accepted and kept pending for admission only.

Note:

STEP BY STEP PROCEDURE

The registration procedure can be completed quickly if you have all the right documents

What are the papers/requirements at the time of registration of documents? Please give full details.

A document should be fully stamped as per the Stamp Duty Ready Reckoner so as to confirm that proper stamp duty has been paid. The Stamp Duty Ready Reckoner is a public document and is available for inspection at a sub- registrar's office.

For registering documents relating to property, one should go the respective registration office along with the original document and one photocopy. The document must be printed or typed on one side only and in black colour. A photocopy should be taken on only one side of the paper and the paper should be of 90 GSM thickness. There should be butter paper between the two sheets of the photocopy.

Apart from a properly executed and fully stamped duty paid document which is to be registered, the following documents are also required before the registration procedure is started.
  1. Municipal assessment bill of the building OR

  2. Building Completion Certificate OR

  3. Original registered agreement between the builder and original purchaser of that flat or of any other flat in that building

  4. Original registered agreement between the builder and original purchaser of that flat or of any flat in that building.
It is better to get the document adjudicated in case the building is very old and proper depreciation is not given by the sub-registrar.

How does one get the document registered at the sub-registrar's office?
  1. Bring the complete document along with other documents above.

  2. Submit the document along with input form at the token window and get the token number.

  3. Wait till the token number is announced.

  4. On token number being announced, all parties to the document must present themselves before the sub-registrar to admit execution of the document, photographed, thumb impression and signature taken on additional sheet of paper in presence of sub-registrar.

  5. Pay the required registration fees and computer service charges in cash as per the receipt (Computer service charges are @ Rs.20 per page)

  6. The document will be returned within 30 minutes of getting the receipt

  7. Please deal only with Officers and staff of the Registration Department who always display government identity card with Government Seal.
If any person who has executed the document is unable to come to sub- registrar's office on medical grounds, then what should he do?

In case a person is unable to attend the office of the sub-registrar on medical grounds, then he should apply to the sub-registrar through a duly authorized representative stating the fact. The sub-registrar is bound to visit such person after office hours i.e. morning 9.00 a.m. to 10.00 a.m. and in the evening 5.00pm to 6.00 pm. That person shall admit in execution in presence of that sub- registrar, affix his photograph and sign and put his thumb impression on the document. The sub-registrar will take the document with him and complete all the formalities and process of registration.

The offices of Sub-Registrar of Assurance in Greater Bombay are located at the following places -

1. Sub-Registrar of Assurances,
Old Customs House, Ground Floor,
Shahid Bhagat Singh Marg,
Ph: 266 2853
Timings: 10 : 00 a.m. to 4 :30 p.m.
Lunch: 1 : 00 to 1 : 30 p.m.
2nd and 4th Saturdays and Sundays closed.

2. Sub-Registrar of Assurances,
Griha Nirman Bhavan, Ground Floor, Bandra (E),
Mumbai 400 051. Ph:642 2161
Timings: 10 : 00 a.m. to 4 : 30 p.m.
Lunch: 1 : 00 a.m. to 1 : 30 p.m.
2nd and 4th Saturdays and Sundays closed.

3. Sub-Registrar of Assurance,
Town Hall, Collector's Office Compound,
Thane (West).

4. Sub-Registrar of Assurances,
Vasai (West).

5. Sub-Registrar of Assurances,
Opp. Station, Kalyan (West).
(2nd and 4th Saturdays and Sundays closed..)
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