Registering Property in Bhubaneshwar, India


This topic examines the steps, time, and cost involved in registering property in Bhubaneshwar.
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Registration Requirements Summary:


  Procedure Time to complete: Cost to complete:
1 Verify Record of Right of Hal Settlement (Municipal) 5 days INR 20
*2 Check for encumbrances at the office of the Subregistrar of Assurance (State) 7 days INR 2,100 (INR 26 for the first year of search + INR 15 for each additional year + lawyer fees)
3 Obtain stamp paper after payment of stamp duty (State) 1 day INR 104,439 (5% of the property value for stamp duty)
*4 The final sale deed is prepared by the buyer or his lawyer (Private) 3 days INR 6,300 (lawyer fee)
5 Execute and register the final sale deed at the Subregistrar’s Office (State) 24 days INR 41,776 (2% of the property value for registration fee)
6 Apply to the Circle Revenue Office for mutation of the property title (State) 90 days INR 2,500
* Takes place simultaneously with another procedure.

Registration Requirement Details

Procedure 1.
Verify Record of Right of Hal Settlement (Municipal)
Time to complete:
5 days
Cost to complete:
INR 20
Name of Agency:
Comment:
The buyer should verify the Record of Right (ROR) of Hal Settlement, the ROR of Sabik Settlement, and the Deed of Conveyance if any transfer of title from Sabik to Hal Settlement occurred during the period over which the search is conducted. This procedure is unique to the state of Orissa, in which certain tribal areas are protected. Following Resolution S-88/2005-39463 dated September 28, 2005, the fees for obtaining the Record of Right have been reduced to INR 20. Records have been computerized from the year 2003 onwards.
Procedure 2.
Check for encumbrances at the office of the Subregistrar of Assurance (State)
Time to complete:
7 days
Cost to complete:
INR 2,100 (INR 26 for the first year of search + INR 15 for each additional year + lawyer fees)
Name of Agency:
Comment:
The buyer should conduct a search of the property in the Subregistrar’s Office, noting the location details of the property and the time period to be checked. While investigating the title, it should be verified that: a. The legal document is in the name of the owner, issued by the Revenue Record Department under the seal of the Tahsildar; b. On the date of purchase the title of the owner for the preceding 30 years (preferably) shows no mortgage or other encumbrance as still existing on the date of purchase; c. The property is transferable and heritable; d. The transferor is competent and/or authorized to transfer the property; e. The transferee is qualified to be a transferee; f. The object of consideration for the transfer is lawful; g. The transfer has been made and completed in the manner prescribed by law; h. The property being sold is free of restrictions for sale under the Urban Land (Ceiling and Regulation) Act (1976) and a clearance certificate for the property has been issued by the ULC (Urban Land Ceiling) Authorities. All papers with regard to payment of taxes, electricity bills, and water bills must be checked. If the seller is a company incorporated under the provisions of the Companies Act (1956) then it is prudent to check at the office of the Registrar of Companies to verify whether there is any charge on the property registered under the provisions of Section 125 of the Companies Act (1956).
Procedure 3.
Obtain stamp paper after payment of stamp duty (State)
Time to complete:
1 day
Cost to complete:
INR 104,439 (5% of the property value for stamp duty)
Name of Agency:
Comment:
Stamp paper can be obtained from authorized stamp vendors present in the office of the Subregistrar of Assurances. The state of Bhubaneshwar cut the stamp duty to a flat rate of 5% of property value on August 5th, 2008.
Procedure 4.
The final sale deed is prepared by the buyer or his lawyer (Private)
Time to complete:
3 days
Cost to complete:
INR 6,300 (lawyer fee)
Name of Agency:
Comment:
Though not mandatory, it is common practice for a lawyer to draft the final sale deed.
Procedure 5.
Execute and register the final sale deed at the Subregistrar’s Office (State)
Time to complete:
24 days
Cost to complete:
INR 41,776 (2% of the property value for registration fee)
Name of Agency:
Comment:
The deed for registration is presented to the officer in charge of registration at the Subregistrar’s Office within whose jurisdiction the property is located. The officer checks the documents and annexes, and sets a date for both parties to sign the instrument of transfer before the Subregistrar. The Subregistrar also ensures that the stamp duty paid is consistent with the value of the property, and receives payment of the registration and execution fees. The seller and buyer are required to bring two witnesses, along with the following documents: a. ROR of land; b. If vendor is of a scheduled caste or scheduled tribe, certificate to that effect; c. Four passport-sized photographs of the authorized signatories of both parties; d. Photo identification of each party and witnesses such as a voters’ identity card, passport, or identity card issued by the government of India, semi-government and autonomous bodies or identification by a Gazette Officer; e. Certified true copies of Certificate of Incorporation of both seller and buyer; f. True copy of the site plan or map of the locality where the property is situated (not required but may be asked for); g. Copy of sale deed (in duplicate). The documents are submitted to the reader of the Subregistrar for scrutiny. After scrutiny, the reader indicates the registration fee required on the document itself. The registration fee is to be deposited with the cashier against a receipt. After payment of the registration fees, the document is copied into the registry, copies of the document are pasted onto 2 indexes titled “name and property” and “accounts and reports.” The document is delivered upon presentation of the receipt previously issued by the cashier. The value of a given property, determined by the area or zone in which it is located, can be verified from a valuation schedule. If the Subregistrar feels that the property has been undervalued, a strategy used to minimize the amount of stamp duty to be paid, he may decide to inspect the site, which can take from 3 to 5 days. This is not often the case, however.
Procedure 6.
Apply to the Circle Revenue Office for mutation of the property title (State)
Time to complete:
90 days
Cost to complete:
INR 2,500
Name of Agency:
Comment:
The authorized signatory must submit the duly signed application along with an affidavit, indemnity bond, and a certified/notarized copy of the registered title deed. After assessment of the request for mutation, the Revenue Circle Office settles the value of the property tax to be levied and issues a letter of mutation in favor of the buyer certifying that the property has been mutated under the buyer’s name. Land records have been computerized.