Compulsorily Registrable Property Documents
All
kinds of documents does not require compulsory registration. 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.
The
documents which relate to immovable property requires compulsory registration
as per Sec 17 of Indian Registration Act 1902. Similarly according to Sec 54
of
Transfer of Property Act 1882 registration of documents are necessary where the
sale of immovable property the value of which is one hundred rupees or more.
It
is implicit that registration of all sale deeds of immovable property is
compulsory since no immovable property is available for rupees one hundred or
less than rupees one hundred.
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
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. 100/- and above need registration.
3. All non-testamentary documents which
acknowledge the receipt or payment of any consideration on account of the
transactions pertaining to the creation of any right, title, interest in the
immovable property need registration.
4. 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.
Any
right, title or interest in the immovable property may be created,
extinguished, limited, assigned or declared by the document 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.
According
to Section 107 of Transfer of Property Act 1882, 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 continue for more than a year or should run year after year. In general, any lease in excess of one year
and above should be registered.
There
are certain documents which do not need compulsory registration . Section 18 of the Indian
Registration Act, 1908 lays down the instruments of which registration is
optional and which includes the following:
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
Subject
to certain exceptions any document other than a Will must be presented for
registration within four months from the date of execution according to Sec 23
of the Registration Act. Execution means signing of the document.
If
the parties does not apply for registration within the prescribed time but
still they can apply for registration to the Registrar who
may direct, upon payment of a fine not exceeding ten times the actual registration
fees, for registration of such a document [Sec. 25]. provided the delay does not exceed
a further period of four months to the Registrar.
A
document relating to an immovable property can be executed out of India and
later it can be presented for registration in India. Under 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 theprescribed period of time, the Registering Officer may, on payment of properregistration fee accept such document for registration if he is satisfied thatthe 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:
Section
34 of the Registration Act empowers or gives the right to the Registering
Authority to enquire whether the person who applies for registration is the
same who purports to have executed such a document. He may insist on some proof
and if the person is found to be a representative or agent, then 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 the Registration Act staes that the documents which are not registered
cannot convey a valid legal title to the transferee and also not admissible as
evidence for any transaction affecting the property referred to in the document.
But there is an exception to this that the unregistered documents may be
admitted as evidence in a suit for specific performance under Specific Relief
Act.
Registration
of documents acts as notice to the public and to protect themselves against the
likely fraud. It is always advisable to get the documents registered whether
mandatory or not as it is always beneficial and it creates a permanent record
of event which are reflected in encumbrance certificates.
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