Registering Property in

Patna - India

Below is a detailed summary of the steps, time and cost involved in registering property. It assumes a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute.

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  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs

    Check for encumbrances at the office of the Subregistrar of Assurances (State)

    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 “Patta”/legal ownership document, is in the owner’s name, issued by the Revenue Department under the seal of the Tahsildar;
    b. The Encumbrance Certificate (EC) for the preceding 31 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 or consideration for the transfer is lawful;
    g. The transfer has been made and completed in the manner prescribed by law. Also, all papers with regard to payment of taxes, electricity bills, and water bills must be checked, usually by the seller furnishing receipts from bills and taxes.

    It is common practice to hire a lawyer to conduct the transfer process, and the legal fees are therefore included in the cost above.
    Land records have been computerized.

    7 days INR 500

    Pay the stamp duty at the State Treasury and obtain stamp paper (State)

    The buyer must deposit the amount of stamp duty and registration fees with the Treasury, in cash or by bank draft. Once the deposit has been made and a draft of the sale agreement has been agreed upon by both parties, the agreement will be written and stamped on the stamp paper, usually by a lawyer. In Patna, since 2005, it is also possible to pay the stamp duty at a bank.

    3 days INR 167,102 (8% of the property value for stamp duty)
    * 3

    The final sale deed is prepared by the buyer or his lawyer (Private)

    Though not mandatory, it is common practice for a lawyer to draft the final sale deed.

    3 days INR 5,500 (lawyer fees)

    Execute and register the final sale deed at the Subregistrar’s Office (State)

    The final sale deed, written on stamp paper, is submitted to the office of the Subregistrar of Assurances within whose jurisdiction the property is located. The respective authorized signatories of the seller and buyer are required to be present along with two witnesses in order to execute the sale agreement, and to submit the following documents:

    a. One copy of the sale purchase agreement, on stamp paper;
    b. Certified true copy of the Resolution of the Board of Directors’ of both seller and buyer;
    c. Certified true copies of the Certificate of Incorporation of both seller and buyer (not always required).

    The documents are submitted to the reader of the Subregistrar of 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 buyer and the seller present the documents to the Subregistrar’s Office, in accordance with Section 32 of the Registration Act (1908). In practice, the seller hands over physical possession of the property to the buyer when the deed is presented for registration. The document is copied into the registry, copies of the document are pasted onto 2 indexes, one titled “name and property,” the other titled “accounts and reports.” The document is delivered upon presentation of the receipt 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.

    61 days INR 84,551 (2% of the property value for court fees + 2% of the property value for municipal fees + INR 1,000 for statutory fees)

    Apply to the Circle Revenue Office for mutation of the property title (State)

    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 Circle Revenue 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.

    15 days INR 2,020 (INR 20 for official fees + INR 2,000 for lawyer fees)

    * Takes place simultaneously with previous procedure.