| Procedure 1. | Conduct a search in the office of Sub-Registrar and obtain a non-encumbrance certificate |
| Time to complete: | 3 days |
| Cost to complete: | INR 3500 |
| Comment: | The purchaser should take search of the property in the Registry and the Revenue Office. While investigating the title it should be verified (1) that the "Patta" legal ownership document, is in the name of the Owner, issued by the Revenue Department under the Seal of the Tahsildar, (2) that the Encumbrance Certificate (EC) for the preceding 31 years (preferably) shows no mortgage or other encumbrance as still existing on the date of purchase, (3) the property is transferable and heritable, (4) the transferor is competent and/or authorized to transfer the property, (5) the transferee is qualified to be a transferee, (6) the object or consideration for the transfer is lawful, (7) 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, usually by the seller furnishing receipts from bills and taxes. It is common practice for parties to hire a lawyer to conduct all steps, including the search. Therefore the fees above include legal fees. Official search fees alone are Rs 10/- for the first year Rs 25/- for each subsequent year searched. Records dating back to 1996 of the Sub Registrar in Lucknow have been computerized as of 2005. |
| Procedure 2. | Obtain Stamp Paper after payment of stamp duty |
| Time to complete: | 2 days |
| Cost to complete: | INR 1000 + 10 % of the Property Value (Stamp Duty) |
| Comment: | Purchaser has to deposit the amount of stamp duty and registration fees with the Treasury, in cash or bank draft. Once the deposit has been made and a draft of the sale agreement has been agreed, the agreement will be written and stamped on the Stamp Paper, usually by a lawyer. |
| Procedure 3. | Lawyer prepares Final Sale Deed and Transfer Deed on Stamp Papers |
| Time to complete: | 3 days |
| Cost to complete: | INR 5500 |
| Comment: | It is not mandatory for a lawyer to draft the sale deed/transfer deed, though it is common practice for the parties to involve lawyers in the transfer process. |
| Procedure 4. | Submit documents and receipts with the office of the Sub Registrar for registration |
| Time to complete: | 2 days |
| Cost to complete: | INR 5000 |
| Comment: |
Lucknow has 5 Sub Registrars at present who deal with the areas of Lucknow. This is the reason the procedure is fast in respect of registration in Lucknow. All the registrar's offices have been computerized partially.
The Documents are submitted with the office of the Sub Registrar of Assurances within whose jurisdiction the property is located. The respective authorized signatories of the Seller and Purchaser are required to be present along with two witnesses.
After scrutiny, the Reader indicates the Registration fee required, which is 2 % of the transaction value 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 required to be presented before the Sub-Registrar by the parties in accordance with Section 32 of the Registration Act, 1908. Normally, as per practice the Seller hands over the peaceful vacant and physical possession of the property to the Buyer simultaneous to the Deed being presented for Registration.
Thereafter endorsements are made under Section 52, 58 and 60 of the Registration Act on the document after completion of procedures before Sub-Registrar. The document is copied into the register book, copies of the document are pasted onto 2 indexes one titled name and property, and the other titled accounts and reports. The document is delivered on the production of the receipt issued by the cashier in respect of the document at the time of presentation. Now due to computerization, the registered document is returned same day. It is general practice to approach the office of the Sub-Registrar, Assurance in advance for their examination, based on which they will calculate the stamp duty and registration fees payable so that payments can be arranged accordingly. This enables speedy registration without wasting of time of the signatories on the day of registration. Further it helps in avoiding situation arising due to discrepancies in calculation of the amount to be paid. The documentation shall include: 1. Sale Deed required to be registered 2. Four Passport size photographs of the authorized signatories of both parties. 3. 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 Gazetted officer. 4. Certified True copy of the Resolution of the Board of Directors' of both Seller and Purchaser. (Not always required to be submitted) 5. Certified True copies of Certificate of incorporation of both Seller and Purchaser. (Not always required to be submitted.) Cost: 2% of the purchase value or the market value whichever is higher subject to maximum of INR 5,000/- in cash. In the case study, as 2% works out to be more than 5,000, the maximum of INR 5,000/- is payable. |
| Procedure 5. | Apply to Municipality for mutation of the title of the property |
| Time to complete: | 31 - 34 days (subject to the formation and sitting of the committee) |
| Cost to complete: | INR 10,000 (10% of the consideration paid before the Lucknow Development Authority) |
| Comment: | After receipt of the registered title deed, an application is made by the Purchaser to the Municipal Authority seeking mutation of the title of the property in its favour. The authorised signatory has to submit the duly signed application along with affidavit and a certified/notarised copy of the registered title deed. After the application for mutation is moved before the Authority, who gets the application published in the local news papers thereby inviting the objection from the persons who may have any, within that period. After the expiry of the period mentioned in the notice the orders for mutation are passed accordingly. After the assessment of the request for mutation, the Municipal Authority settles the rateable value for levying tax on property and then issues a letter of mutation in favour of the purchaser certifying the fact that the property has since been mutated in the Purchaser's name. Parties have to go personally to collect the letter of mutation. |