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Registration of Documents: An overview of the relevant law.

Courtesy/By: Prathamesh R. Gothe | 2021-02-18 20:51     Views : 253

Registration of Documents

 Documentation is the very foundation of any monetary transaction between one or more entities, whether the parties to such transactions are individuals or non-individuals. Persons intending to create a legal relationship among themselves have an option either to go forward by orally agreeing to the terms of the contract or by reducing them to a written contract. For maintaining a record and to avoid any confusion in the future over the terms agreed, most persons choose to go with the written format of contracts.

 On entering into contracts of a particular nature, the laws of registration in India provide for the documents or instruments transferring interests in the contract to be registered with the authorities empowered with this job, by the Government.

We shall hereafter discuss the objects of the registration law of India, the documents which require compulsory registration, those documents for which the registration is optional, the time limit for submitting the documents for registration, and the consequence of not registering the required documents.

 

The object of the Indian Registration Act of 1908:

  1. i) Registering certain documents compulsorily as provided under the Registration Act.
  2. ii) Preservation of records relating to property in the registrar’s office properly.

iii) Making available the information to the general public about the legal rights and obligations attached with the property.

  1. iv) Admissibility of documents in evidence.

 

Documents that require compulsory registration:

1) Instrument of Gift involving an Immovable Property:

- Every instrument of gift relating to immovable property shall be registered.

- It will still be valid even if it is registered after the donor is deceased. In case of non-registration within the prescribed time limit provided by law, then such document shall not be considered valid and thus be inoperative.

2) Other non- testamentary instruments

-  A document between 2 living persons (being called a non-testamentary document) pertaining to an immovable property, whose value is 100 or above.

- Such instrument must create, assign or extinguish any interest in the property in the present or future.

3) Instrument of acknowledgment:

- An instrument specifying the acknowledgment of receipt and payment of any consideration pertaining to an immovable property whose value is 100 or more.

4) Instrument of lease:

- Not every kind of lease is required to be registered compulsorily. However, instruments creating a lease exceeding 1 year or reserving yearly rent or a lease for year on year basis shall be registered compulsorily.

5) Any instrument which transfers the decree or order of Court:

An Instrument transferring a decree or order of the Court creating an interest in favor of any person concerning an immovable property whose value is 100 or more shall be compulsorily registerable.

It is the instrument that transfers the decree shall be registered and not the decree of the Court.

6) Any instrument transferring an immovable property under Section 53A of the Transfer of Property Act.

 

Documents that need not be registered compulsorily (i.e optional registration):

1) Instrument which creates any kind of interest in immovable property of a value less than 100.

2) Instrument which is an acknowledgment of receipt or payment of consideration where value is less than 100.

3) Instrument pertaining to the creation of lease for a period of less than 1 year.

4) Any instrument creating interest in a property that is movable in nature.

5)  A will

6) Instrument transferring decree or order where value is less than 100.

 

The time limit for furnishing the documents for registration:

- Generally, a document shall be presented for registration within 4 months from the date of execution of the document.

- In case of reasonable circumstances if the document is not so presented within a period of 4 months, then such period shall be extended by further 4 months by the Registrar.

 

The consequence for non-registration of the required documents:

- It shall not affect the immovable property given therein.

- It shall not be admitted as evidence of any transaction affecting such property.

- It cannot be received or used in any legal proceeding.

- It cannot be used for the purpose of Sec 53A of the Transfer of Property Act.

 

It must be noted that since land is the subject of the Concurrent List in the Indian Constitution, both Central, as well as State Governments, are empowered to frame laws regarding the registration of documents creating or transferring a property. Thus, whether it is an individual or a company, it must be familiar with the State laws for registration as well, depending on the state in which such property or land is situated. Also, registration provides the Government with necessary records of the properties dealt with under its jurisdiction. This would be helpful to the Government to know whether the land transactions are executed legally or not.

 

This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being. Further, despite all efforts that have been made to ensure the accuracy and correctness of the information published, White Code Legal and Tax shall not be responsible for any errors caused due to human error or otherwise.

 

Courtesy/By: Prathamesh R. Gothe | 2021-02-18 20:51