| Procedure 1. | Conduct a search in the office of Sub-Registrar and obtain a non-encumbrance certificate |
| Time to complete: | 2-3 days |
| Cost to complete: | INR 7500 |
| 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 transfer steps, including the search. Therefore the fees above include legal fees. Official search fees alone are Rs. 50/- at the office of the Sub - Registrar of Assurances. The Sub Registrar of New Delhi is partially computerized, but has high volumes of records. |
| Procedure 2. | Publish notice of the transaction in local newspaper and await claims |
| Time to complete: | 2 days (to arrange publication) + 60 days (to wait for claims) |
| Cost to complete: | INR 5000 to 7000 |
| Comment: | It is advisable to publish notice in a local newspaper regarding the pending transaction, to assure there are no other claims on the property. It is common practice to do so in New Delhi, although it is not mandatory to do so in order to get the property registered. |
| Procedure 3. | Obtain Stamp Paper after payment of stamp duty |
| Time to complete: | 1-3 days |
| Cost to complete: | 8% 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. Stamp duty for men in New Delhi is 8%; for women it is 6%. |
| Procedure 4. | Lawyer prepares Final Sale Deed and Transfer Deed on Stamp Papers |
| Time to complete: | 3 days |
| Cost to complete: | 5500 (lawyer fees) |
| Comment: | Though not mandatory, it is common practice for companies to hire a lawyer to draft the sale purchase agreement and usually conduct transfer procedures on behalf of clients. |
| Procedure 5. | Submit documents and receipts with the office of the Sub Registrar for registration |
| Time to complete: | 1 - 15 days |
| Cost to complete: | INR 5000 (including lawyer's fees) |
| Comment: |
Parties/lawyers conduct execution of the sale agreement at the office of the appropriate authority and submit documents with the office of the sub-registrar of assurance where the property is located. On presentation the same is summarily checked and the documents/annexures are counted. The areas of the District/City are demarcated and specified for valuation of the locality as per the pre-existing schedule. If the valuation of the property to be transferred is below the specified rates then the sub-rgistrar will inspect the site for verification of rate of the area and if found that the rate is below the specified price, then an additional stamp duty is demanded if the stamp duty placed is found as per standard rate applicable for the area. If sub-registrar feels that the stamp duty is less, than he fixes the day/time for inspection of site. This may take 3 to 5 days. Documents required to be presented are: 1. 2 copies of the sale purchase agreement, on stamp paper. One copy will remain with the Sub-Registrar for the records. 2. Two passport-size photographs of the authorised 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 and the Power of Atorney authorizing a representative to sign the sale deed. 5. Certified true copies of Certificate of incorporation of both Seller and Purchaser. The documents are submitted to the Reader of the Sub-Registrar, Assurances for scrutiny. After scrutiny, the Reader indicates the Registration fee required, 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 handsover the peaceful vacant and physical posession of the property to the Buyer simultaneous to the Deed being presented for Registration. |
| Procedure 6. | Apply to Municipality for mutation of the title of the property |
| Time to complete: | 30 - 90 days |
| Cost to complete: | INR 10,000 |
| Comment: | After receipt of the registered title deed (procedure 5), an application is made by the Purchaser to the Municipal Authority seeking mutation of the title of the property in his favour. The authorised signatory has to submit the duly signed application along with affidavit, indemnity bond and a certified/notarised copy of the registered title deed. After assessment of the request for mutation, it will take about 1 to 3 months for the Municipal Authority to settle the rateable value for levying tax on property and then to issue a letter of mutation in favour of the purchaser certifying the fact that the property has since been mutated in the Purchaser's name. The cost includes lawyer fees, as one would normally use a lawyer to conduct the transfer process. Official fees alone would be Rs. 50 - 100, depending on the size and location of the property. |