| Procedure 1. | Conduct a search in the office of Sub-Registrar and obtain a non-encumbrance certificate |
| Time to complete: | 1 - 60 days |
| Cost to complete: | INR 1000 to 5000 |
| 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. Official cost of searches for past thirty years is Rs. 310/-. It is calculated @ Rs. 20/- for first one year and Rs. 10/- for each additional year. The rest of the amount goes to the concerned lawyer/person carrying out the searches. An application has to be made for conducting the search in prescribed form at the rates indicated above. |
| Procedure 2. | Obtain Stamp Paper after payment of stamp duty |
| Time to complete: | 2-15 days |
| Cost to complete: | 4% property value |
| 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: | 1-3 days |
| Cost to complete: | 2000 to 5000 (lawyer fees) |
| Comment: | Though it is not mandatory, it is common practice to hire a lawyer to draft the sale purchase agreement and conduct transfer procedures on behalf of the clients. |
| Procedure 4. | Submit documents and receipts with the office of the Sub Registrar for registration |
| Time to complete: | 4 days |
| Cost to complete: | 1% property value + INR 3000 |
| 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, though it happens rarely. The respective authorised signatories of the Seller and Purchaser are required to be present along with two witnesses at the time of registration. Documents required to be presented are: 1. 2 copies of the sale purchase agreement, on stamp paper, one on stamp paper and exact copy on plain bond paper. 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. (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) 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. Three days after submission, deed on stamp paper is returned to the party. |
| Procedure 5*. | Apply to Ranchi Revenue Authorities for mutation of the title of the property |
| Time to complete: | 1 day (submission of application for mutation) + 35 - 40 days (time to receive confirmation of mutation) |
| Cost to complete: | no cost |
| Comment: |
While the revenue authorities mutate the name of the purchaser in relevant records for the purpose of payment of ground rent from him the same is done by the municipal authorities for collection of municipal taxes for the building. (1) Mutation before the revenue authorities : internal procedures (i) Submission of application for mutation along with a copy of the sale deed in the Circle Office -- 1 day (ii) A number is assigned to the application and a date is fixed for putting up the record before the Circle officer -- same day (iii) Record is put up before the C.O. for admission -- 7 days (iv) The C.O. admits the application on being satisfied that the same is in order and required documents have been furnished and thereafter orders for appointment of a "Karmchari" to give a report after local inspection regarding possession of land by the applicant and amount of tax to be imposed -- same day (v) The Karmchari submits his report on local inspection --15 to 20 days (vi) The record is put up before the C.O. and in case of a favourable report accepts the prayer for mutation -- 7 days (vii) A mutation Correction slip is issued in the favour of the applicant, which is conclusive proof of mutation -- 1 day Application for mutation has to be submitted before two different forums - (1) Revenue authorities, i.e. Circle Officer (C.O) of the concerned Circle; and (2) Municipal authorities. Both these applications could be simultaneously submitted and pursued, immediately after obtaining the registered deed. While the revenue authorities mutate the name of the purchaser in relevant records for the purpose of payment of ground rent from him the same is done by the municipal authorities for collection of municipal taxes for the building. |
| Procedure 6*. | Apply to Municipality for mutation of the title of the property |
| Time to complete: | 1 day (submission) + 35 - 40 days (time to receive confirmation of mutation) |
| Cost to complete: | INR 100 |
| Comment: |
Mutation before the municipal authorities: internal procedures (i) Submission of application for mutation along with a copy of the sale deed and requisite fee for mutation in the office of the municipality -- 1 day (ii) A number is assigned to the application and a staff of the municipality is appointed to give a report after local inspection regarding amount of tax to be imposed based on constructed area and nature of construction -- 7 days (iii) The concerned staff submits his report on local inspection -- 20 to 25 days (iv) The amount of tax assessed on the building, if not disputed, is accepted and prayer for mutation is allowed and a holding no. is allotted to the building -- 7 days (v) A tax receipt showing payment of tax in the name of the applicant, of the concerned holding, could be obtained on payment of tax, which is sufficient proof of mutation of holding in the name of the applicant/purchaser -- same day |