New Rent Rules 2025 Explained: Online Registration & Deposit Limits Made Simple
Landlord / Tenant

New Rent Rules 2025 Explained: Online Registration & Deposit Limits Made Simple

Introduction

Renting a home in India has always involved confusion, paperwork, and inconsistent rules that vary across states. In many cities, landlords still use handwritten rent agreements, tenants often pay huge security deposits, and disputes can drag on for years. To fix these long-standing issues, the Government of India has proposed the New Rent Rules 2025, aimed at making renting transparent, digital, fair, and legally secure for both landlords and tenants.

These rules are inspired by the Model Tenancy Act (MTA), which acts as a guiding framework for states. Because “Land and Tenancy” come under the State List, each state must either adopt these rules, amend its existing rent laws, or pass a new legislation for the 2025 rules to actually become enforceable in that state.

However, the 2025 framework gives a clear, modern structure that most states are expected to follow soon.

Also Read: How to Make a Rent Agreement Online in India: A Step-by-Step Guide

What Are the New Rent Rules 2025?

The New Rent Rules 2025 are a modern set of rental guidelines that make renting homes and commercial spaces simpler, digital, and better regulated across India. These rules aim to:

  1. Reduce landlord–tenant disputes

  2. Ensure legal protection for both parties

  3. Promote digital documentation

  4. Control unfair security deposits

  5. Introduce systematic rules on rent increase

  6. Speed up dispute resolution through tribunals

  7. Modernize India’s rental housing ecosystem

These rules are not automatically applicable nationwide. States must adopt or adapt them into their local laws.

Also Read: New Rental Rule from July 1: No Digital Stamp? Pay ₹5,000 Fine!

Key Objectives of the New Rent Rules 2025

1. Promote Digital Renting

Every rent agreement must be registered online, digitally stamped, and verified.

2. Reduce Legal Disputes

Clear timelines and rules reduce confusion, manipulation, and false claims.

3. Protect Tenants From Harassment

Rules against lockouts, forced evictions, or service disconnection.

4. Protect Landlords From Illegal Occupancy

Eviction timelines made simpler and legally enforceable.

5. Bring Transparency in Deposits & Rent Hikes

Deposit caps and rent increase rules prevent exploitation.

Also Read: Paying ₹55,000 Rent On Time? You May Still Face ₹1 Lakh TDS Penalty—Here’s Why

Not a Central Law — States Must Implement It

One of the most important points to understand:

The New Rent Rules 2025 are NOT automatically enforceable across India.

Why?

  1. “Land and Tenancy” fall under Entry 18, State List (List II) of the Constitution.

  2. This means states have exclusive powers to frame tenancy laws.

The Central Government has simply created a modern template.
For the rules to apply:

  1. Each State Legislature must pass a new act or

  2. Amend its existing Rent Control Act

States like Maharashtra, Karnataka, Delhi, Tamil Nadu, Gujarat, and Uttar Pradesh are already reviewing their rent laws to align with the 2025 framework.

Also Read: Why you should get your rent agreement registered

Biggest Changes Under the New Rent Rules 2025

This is where the New Rent Rules create the strongest impact:

a) Mandatory Online Rent Agreement Registration (Within 60 Days)

One of the biggest transformations:

Every rent agreement must be registered online within 60 days of signing.

This includes:

  1. Residential rental agreements

  2. Commercial property agreements

  3. Partial rentals

  4. Shared accommodation (PGs/hostels with formal contracts)

Earlier Situation

  1. Handwritten agreements were accepted in most states

  2. No uniform requirement for registration

  3. Frequent fraud

  4. Landlords manipulating unregistered agreements

  5. Tenants having no legal proof of tenancy

Now Under 2025 Rules

  1. Online portal (state-level) facilitates registration

  2. Digital stamp duty

  3. Aadhaar + e-KYC verification of both parties

  4. Automatic upload of rental records

  5. Instant downloadable agreement

  6. Legally enforceable in Rent Tribunal

Penalty for Non-Registration

  1. States may impose penalties starting ₹5,000 + daily fines until registered.

  2. Some states may make it mandatory for police verification too.

This rule alone can prevent 85% of tenancy disputes (as per Ministry of Housing estimates).

b) Security Deposit Limits Made Uniform Across India

Another major reform:

Residential Property

Maximum 2 months’ rent as security deposit

Commercial Property

Maximum 6 months’ rent as security deposit

Why this rule matters?

In big cities like Bengaluru, Chennai, Mumbai, Pune, and Hyderabad, many landlords demand:

  1. 6 months’ rent

  2. 10 months’ rent

  3. Sometimes even 1 year’s rent

This creates major burden on tenants.

The 2025 limit ensures:

  1. Affordability for tenants

  2. Reduced exploitation

  3. Greater transparency

  4. Lower entry cost when shifting cities

States may add penalties for overcharging deposits.

c) Rent Increase Rules: No Surprise Hikes

Under new rules:

Rent can only be increased after 12 months.

And:

Landlord must give 90 days’ written notice before increasing rent.

Benefits:

  1. Tenants get enough time to plan

  2. Landlords follow a regulated, predictable rent increment pattern

  3. No abrupt or unreasonable hikes

  4. Ensures transparency in long-term tenancy

States may additionally define a maximum percentage of increase per year (usually 3–5%).

d) Stronger Tenant Protection Against Unlawful Evictions

The 2025 rules clearly state:

A landlord CANNOT evict a tenant without an eviction order from the Rent Tribunal.

This rule protects tenants from:

  1. Forceful eviction

  2. Breaking locks

  3. Changing door keys

  4. Threats or intimidation

  5. Harassment

  6. Disconnecting electricity or water

  7. Blocking access to property

Additional Tenant Rights:

  1. 24-hour notice required before landlord enters the property

  2. No surprise inspections

  3. Police verification must be completed by both parties

  4. Receipt for every rent payment mandatory

Any violation can lead to penalty or criminal action.

e) Repair and Maintenance Rules: Clear Responsibilities

The New Rent Rules clarify:

Landlord Must Handle:

  1. Structural repairs

  2. Plumbing and drainage

  3. Electrical wiring

  4. Painting (every 3 years)

  5. Water seepage issues

  6. Roof damages

  7. Common area maintenance

Tenant Must Handle:

  1. Minor repairs

  2. Daily maintenance

  3. Wear-and-tear replacements

  4. Keeping the property clean

  5. Damage caused by personal misuse

Key Time Limit

If the landlord fails to make essential repairs within 30 days, then:

Tenant can get the repair done and deduct the amount from next month’s rent, provided bills and proof are submitted.

f) Rules for Property Entry & Inspection

To protect tenant privacy:

  1. Landlord must give 24-hour prior written notice

  2. Visits allowed only between 7 AM and 8 PM

  3. No late-night entries

  4. No frequent inspections to harass tenants

g) Establishment of Rent Tribunals

The 2025 framework makes dispute resolution FASTER.

Rent Authority: Registers agreements and handles initial complaints

Rent Court: Handles rent, deposit, and maintenance disputes

Rent Tribunal: Final appellate authority

Dispute Resolution Timelines

  1. Minor issues (like deposit return): 60 days

  2. Standard disputes: 90 days

  3. Eviction cases: Maximum 120 days

This makes the rental justice system fast and tenant-friendly.

Also Read: Lease Deed Registration: Everything You Should Know

How Do These Rules Protect Tenants?

The New Rent Rules 2025 provide multiple layers of protection:

1. Protection from Unlawful Eviction

Landlord must approach the Rent Tribunal and get an official eviction order.

2. Protection from Harassment

Any threats, forceful eviction attempts, or tampering with services = Punishable.

3. Protection from Huge Deposits

Deposit capped at 2 months (residential).

4. Protection from Surprise Rent Hikes

Tenant must be given 90 days’ notice.

5. Protection of Privacy

Landlord entry allowed only after 24-hour notice.

6. Verified Tenancy

Police verification protects tenants from false allegations and protects landlords from potential misuse of property.

7. Protection of Rights to Essential Services

Electricity, water, internet, and other services cannot be cut off by the landlord.

Also Read: Gruha Jyothi Scheme, 2024: How to Avail Free Electricity for Your Home

How Do These Rules Benefit Landlords?

Landlords are also given strong legal safeguards under the 2025 rules.

1. Protection From Illegal Occupants

If a tenant overstays after lease expiry, landlord can approach tribunal and get fast eviction order.

2. Digital Record of Tenant

Police verification + online registration create official records.

3. Protects Against Rent Default

If tenant does not pay rent for two consecutive months, eviction can be initiated.

4. Damage to Property Recoverable

Tenants must pay for damages beyond normal wear and tear.

5. Speedy Dispute Resolution

No more waiting years for eviction cases.

Also Read: When Can a Landlord Legally Evict a Tenant in India? A Complete Guide

What Happens If You Do NOT Register Your Rent Agreement?

If a rent agreement is not digitally registered:

  1. The agreement may become invalid for legal purposes

  2. Rent disputes cannot be filed without a registered agreement

  3. Penalty of ₹5,000 or more depending on the state

  4. Tenancy status becomes “unofficial”, which weakens legal protection

  5. Refund disputes (deposit return) become complicated

  6. Police verification cannot be completed

States may increase the penalty to ₹10,000 – ₹25,000 or more in high-demand cities.

Also Read: Perpetual Lease Explained: Everything Property Buyers Must Know

Rules on Security Deposit Return

When a tenant vacates:

  1. Landlord must return the deposit within 30 days

  2. Deductions allowed ONLY for:

    1. Damages to property

    2. Unpaid rent

    3. Outstanding electricity/water bills

Landlord cannot deduct deposit for:

  1. Painting

  2. Deep cleaning

  3. Fixing normal wear and tear

  4. New fittings

All deductions must be clearly justified.

Police Verification Rules

Both landlord and tenant must complete police verification through:

  1. State police website

  2. Mobile app

  3. Local police station (if offline)

Failure to verify tenancy may result in:

  1. Penalties

  2. Delayed dispute resolution

  3. Refusal of protection in case of conflict

Responsibilities of Tenants Under New Rules

Tenants must:

  1. Pay rent on time

  2. Not sublet without written permission

  3. Maintain the property

  4. Inform landlord about repairs

  5. Not use property for illegal activities

  6. Follow society or building rules

Responsibilities of Landlords Under New Rules

Landlords must:

  1. Provide a safe, habitable home

  2. Ensure uninterrupted essential services

  3. Register agreement within 60 days

  4. Issue rent receipts

  5. Complete structural repairs

  6. Respect tenant privacy

When Can a Landlord Legally Evict a Tenant?

Under 2025 rules, eviction is allowed only when:

  1. Non-payment of rent for 2 months

  2. Tenant damages property

  3. Tenant engages in illegal activity

  4. Tenant sublets without permission

  5. Landlord needs property for personal use

  6. Tenant stays after agreement expires

  7. Tenant violates agreement terms

But even in these cases:

Landlord must obtain a Rent Tribunal eviction order.

Digital Rental Ecosystem: What States Must Do

The Centre has asked states to upgrade systems to enable:

  1. Aadhaar-based e-KYC

  2. Online rent agreement creation

  3. Digital stamp duty

  4. Online police verification

  5. Integrated landlord-tenant portals

  6. Online filing of disputes

  7. Virtual hearings for rent cases

This is expected to modernize India’s rental housing system over the next 2 years.

Impact on the Rental Market in India

The New Rent Rules 2025 will:

  1. Increase supply of rental homes

  2. Boost trust between landlords and tenants

  3. Formalize the rental economy

  4. Reduce black-money transactions

  5. Encourage NRIs to safely rent property

  6. Improve affordability for students and migrants

  7. Create uniformity across states

With nearly 1.1 crore vacant homes in India (as per Census data), digital renting can transform the market.

Conclusion

The New Rent Rules 2025 are a major step toward modernizing India’s rental market. With digital registration, transparent deposit rules, regulated rent hikes, and strict protections for both landlords and tenants, these rules bring clarity and fairness to renting homes and commercial spaces.

As states adopt these guidelines, renting in India will become:

  • More secure

  • More affordable

  • More transparent

  • More digitally driven

Whether you are a tenant planning to move or a landlord renting out your property, understanding these rules will help you stay compliant, protected, and stress-free.

Registration Bill 2025: India Set to Digitize Property Registrations with New Draft Bill
Property

Registration Bill 2025: India Set to Digitize Property Registrations with New Draft Bill

Introduction: A Step Toward Digital India

In a transformative move for India’s real estate sector, the Central Government has proposed the Registration Bill 2025. This draft legislation is designed to modernize and digitize the country’s age-old property registration system by replacing the Registration Act of 1908. With the introduction of digital workflows, enhanced transparency, and Aadhaar-enabled verifications, the new bill is poised to overhaul how property transactions are conducted and registered in India.

Public Involvement

The bill is currently in the public consultation stage, with feedback being invited by the Department of Land Resources, Ministry of Rural Development. Citizens and stakeholders have until June 25, 2025, to share suggestions via email at sanand.b@gov.in using the prescribed format available on the official DOLR website.

What is the Registration Bill 2025?

The Registration Bill 2025 is a proposed legislation that introduces an online-first approach to property registration. It seeks to eliminate long queues at sub-registrar offices, prevent fraud, reduce litigation, and promote a digitally accessible and citizen-centric process.

Key Objective

The primary goal of this bill is to digitally empower property owners and buyers by offering a seamless, paperless property registration mechanism. This is in line with the government’s vision of Digital India and Ease of Doing Business reforms.

Key Features of the Draft Registration Bill 2025

Complete Online Registration Process

The bill allows the entire registration cycle—from document submission to the issuance of registration certificates—to be completed online.

Key Components:

  1. Electronic submission and admission of documents

  2. Aadhaar-based or alternate identity verification

  3. Online payment of registration fees and stamp duty

  4. Digital issuance of registration certificates

This means buyers and sellers no longer need to physically visit the sub-registrar’s office unless verification is required in exceptional circumstances.

Expansion of Compulsorily Registerable Documents

The bill significantly expands the scope of documents that must be registered to promote legal transparency and accountability.

Newly Included Documents:

  • Agreements to Sell

  • Powers of Attorney

  • Sale Certificates issued by recognized authorities

  • Equitable Mortgage Deeds

  • Legal Instruments based on judicial orders

These inclusions aim to prevent future disputes, aid in due diligence, and reinforce the legal validity of real estate transactions.

Aadhaar-Based and Alternative Authentication

The draft promotes Aadhaar-enabled authentication but ensures inclusivity by allowing other methods of identity verification.

Authentication Options:

  1. Aadhaar authentication (voluntary and consent-based)

  2. Offline Aadhaar verification

  3. Passport or Voter ID for those not opting for Aadhaar

This dual approach ensures that individuals without Aadhaar are not excluded, thus complying with Supreme Court rulings on Aadhaar privacy and consent.

Biometric and Paperless Verification

The Registration Bill proposes secure digital processing of property documents using:

  • Biometric thumb impressions

  • Electronic signatures

  • Passport-size photographs

  • PAN (Permanent Account Number) submission

These steps aim to enhance the evidentiary value of documents and prevent forgery or impersonation during registration.

Hybrid Approach: Physical Appearance When Required

Though digital-first, the bill retains a hybrid model. Authorities can mandate in-person verification in certain cases, such as:

  1. Suspected fraud

  2. Public interest matters

  3. Incomplete or suspicious online data

This safeguards the integrity of transactions while allowing digital convenience for most users.

Modernized Administrative Hierarchy

The draft bill outlines a revamped registration structure, giving states flexibility to create roles based on local requirements.

Proposed Roles:

  • Inspectors General of Registration

  • Additional and Assistant IGs

  • Digital Registrars

  • Technical Officers for database management

This professionalized structure will allow better supervision, faster redressal of grievances, and seamless data management.

Integration with Government Databases

The bill mandates inter-departmental integration, enabling real-time cross-checks with:

  1. Land records (Bhoomi, Bhulekh, etc.)

  2. Income tax (via PAN)

  3. UIDAI (for Aadhaar authentication)

  4. Municipal corporations (property tax data)

This interoperability will enhance the credibility of property transactions and prevent double registrations or encroachments.

E-Registry and Real-Time Record Maintenance

The new law emphasizes digital record-keeping, with a centralized E-Registry to store, track, and retrieve documents easily.

Features:

  1. Cloud-based data storage

  2. Real-time update of ownership

  3. QR-coded registration certificates

  4. Access to buyers, sellers, and government departments

This transparency will be especially useful in land title verification during legal proceedings or home loan applications.

Dispute Resolution & Appeals

The bill introduces a formal appeal process in case:

  1. Registration is denied

  2. Inaccurate data is recorded

  3. Fraudulent documents are detected

Citizens can escalate their grievances to appellate officers and Registration Tribunals for quick resolution, enhancing trust in the process.

Benefits of the Registration Bill 2025

Transparency and Reduced Litigation

  • By making registration mandatory for more documents, the bill reduces the chances of property fraud, encroachments, and forged deeds.

Time and Cost Efficiency

  1. No queues at registrar offices.

  2. Lower operational costs for the government and citizens.

  3. Reduced legal and administrative delays.

Ease of Access

  1. Citizens in rural and remote areas can now register property without traveling long distances.

  2. Senior citizens, NRIs, and women benefit from remote access and reduced dependency on brokers.

Boost to Real Estate Sector

  • Improved trust in clean title deeds attracts more buyers and foreign investment, especially in urban and tier-2 cities.

Challenges That May Arise

Digital Divide

  • Limited internet access in rural India could slow down adoption.

Data Privacy Concerns

  • With Aadhaar and PAN integration, data protection protocols must be robust.

Training and Transition

  • State registration offices will need capacity building and staff training to ensure smooth digital rollout.

Why Replacing the 1908 Act is Necessary

The current Registration Act, 1908 is over a century old. It doesn't account for:

  1. Digital technology

  2. Real-time databases

  3. Biometric verification

  4. E-governance principles

The proposed bill makes registration future-ready, aligning India’s property registration with global digital governance standards.

Government's Call for Public Feedback

Citizens, legal professionals, and property owners can participate in shaping this law by submitting feedback by June 25, 2025.

Submission Instructions:

  1. Format: MS Word or Machine-readable PDF

  2. Email: sanand.b@gov.in

  3. Form: Download from dolr.gov.in

Public input will be instrumental in refining the bill before it's passed in Parliament.

How This Impacts You

Stakeholder Impact
Homebuyer Easier, faster registration from home, increased safety of documents
Seller No longer required to visit multiple government offices
Banks & NBFCs Real-time document verification for home loan disbursement
Legal Professionals Clearer documentation, reduction in disputes, faster property litigation
NRIs & Elderly No need for physical presence; remote registration options

 

Comparing the Old Act and the New Bill

Feature Registration Act, 1908 Registration Bill, 2025
Process Manual & Physical Fully Digital
Identity Verification Not mandatory Aadhaar/Biometrics
E-Signature Not recognized Legally valid
Record Storage Physical Books Cloud-based
Fraud Detection Limited Real-time tracking
Integration Isolated Linked with multiple government databases

 

Conclusion: A Landmark Move Toward Digital Governance

The Registration Bill 2025 is more than just a legislative reform—it’s a technological leap toward digitized land governance. It simplifies the property registration process, ensures inclusivity, and significantly reduces fraudulent activities. By streamlining operations and integrating with national databases, the bill lays the foundation for a transparent, accountable, and citizen-friendly real estate ecosystem.

As India moves forward in the digital era, laws like these pave the way for efficient governance and public trust. It is now up to stakeholders—citizens, developers, and legal experts—to make their voices heard and contribute to finalizing this historic reform.

FTA HSRP: Complete Guide to Online Registration, Process, Fees, and Status
Traffic Challan

FTA HSRP: Complete Guide to Online Registration, Process, Fees, and Status

Introduction

The FTA HSRP (High-Security Registration Plate) system has brought a significant transformation in how vehicle registration is managed across India. This initiative, launched by the Government of India, aims to enhance road safety and streamline vehicle identification by implementing tamper-proof, uniquely coded number plates for all vehicles.

Whether you are applying for an FTA HSRP Number Plate for a new vehicle or upgrading your old vehicle's number plate, it is essential to understand the entire process. This comprehensive guide will walk you through the complete FTA HSRP registration process, fees, status check, and other essential details.

What is FTA HSRP?

FTA HSRP refers to the system of High-Security Registration Plates implemented by the Government of India to standardize and secure vehicle identification. Unlike traditional number plates, HSRP plates come with advanced security features, including:

  • Tamper-proof technology: The plates are designed to resist tampering and duplication, enhancing overall vehicle safety.

  • Unique Code: A unique code is embedded in the plate, linked to the vehicle's details in a centralized database.

  • Non-removable Snap Lock: It ensures that the plate cannot be easily removed or replaced without authorization.

  • Reflective Sheeting: Enhances visibility during night-time or poor weather conditions, aiding road safety.

The FTA HSRP Number Plate is mandatory for all vehicles, whether newly registered or old. This measure aims to streamline vehicle identification and curb illegal practices like vehicle theft or unauthorized modifications.

Benefits of FTA HSRP

Switching to the FTA HSRP system offers several advantages:

  1. Enhanced Security: Tamper-proof plates make it difficult for unauthorized individuals to alter or duplicate the plates, thereby reducing the risk of vehicle theft.

  2. Standardization: A uniform system across India ensures clarity and consistency in vehicle identification.

  3. Improved Compliance: Complying with FTA HSRP regulations helps vehicle owners avoid fines and legal complications, especially under the E-Challan system.

  4. Increased Visibility: The reflective sheeting ensures better visibility at night, thereby improving safety for both drivers and law enforcement agencies.

  5. Seamless Management: The centralized database system helps authorities easily track and manage vehicle registration details.

Why Choose FTA HSRP?

Here are some of the top reasons why you should opt for FTA HSRP:

  • Legal Compliance: As per government regulations, installing an FTA HSRP Number Plate is mandatory for all vehicles.

  • Road Safety Improvement: Enhanced visibility and tamper-proof technology contribute to overall road safety.

  • Easy Online Registration: The online process simplifies the application and tracking of HSRP registration status.

  • Reduced Risk of Fines: Staying compliant with FTA HSRP rules helps avoid hefty fines and penalties associated with non-compliance.

FTA HSRP Online Registration Process

The process of registering for an FTA HSRP Number Plate has been made convenient through online registration. Here is a step-by-step guide:

  1. Visit the Official Portal: Go to the official FTA HSRP online registration portal. Ensure that you access the website specific to your state or region.

  2. Enter Vehicle Details: Provide accurate details about your vehicle, including:

    1. Registration Number

    2. Chassis Number

    3. Engine Number

    4. Owner's Name and Address

  3. Select HSRP Type: Depending on your vehicle type (old or new), select the appropriate FTA HSRP option.

  4. Make Payment: Complete the payment process. Charges may vary based on the vehicle type, state, and additional features like color-coded stickers.

  5. Schedule Installation: Once the payment is successful, you can schedule an appointment for the installation of the FTA HSRP Number Plate.

  6. Installation: Visit the authorized service center as per the scheduled appointment to get the plate installed.

HSRP FTA Fees and Pricing

The cost of an FTA HSRP Number Plate can vary depending on the following factors:

  • Vehicle Type: Two-wheelers, four-wheelers, and commercial vehicles may have different pricing structures.

  • State or Region: Different states have their own pricing norms.

  • Optional Features: Features like color-coded stickers may incur additional charges.

Generally, the price of an FTA HSRP plate ranges from INR 300 to INR 1000. It is recommended to check the official portal for accurate pricing details.

FTA HSRP Registration for Old Vehicles

For vehicles registered before 2019, upgrading to an FTA HSRP Number Plate is mandatory. The process is similar to the registration of new vehicles, but additional details may be required.

Steps to follow:

  1. Visit the official registration portal of your state.

  2. Fill in the vehicle’s registration number, chassis number, and engine number.

  3. Complete the payment process.

  4. Schedule an installation appointment.

Failure to comply with this requirement may result in fines or penalties under the E-Challan system.

How to Check the Status of Your HSRP Registration

Once you have completed the registration process, you may want to track your application status. Here's how to do it:

  1. Visit the official FTA HSRP portal.

  2. Enter your application number or vehicle registration number.

  3. Check the status of your application.

This feature ensures you stay informed about the progress of your application and take necessary actions if required.

Conclusion

The FTA HSRP system has modernized vehicle registration across India, making it more secure, streamlined, and accessible. Whether you are registering a new vehicle or upgrading an old one, the FTA HSRP process is straightforward and essential for legal compliance. With the added convenience of online registration and tracking, ensuring your vehicle is properly registered has never been easier.

Follow the steps outlined in this guide to apply for your FTA HSRP Number Plate and enhance your vehicle’s safety and compliance.

Stay updated with the latest FTA HSRP regulations to avoid fines and maintain a hassle-free driving experience.

What Are The New Rules For Property Registration In India
Property

What Are The New Rules For Property Registration In India

Introduction

Property registration is a crucial step in real estate transactions in India. It ensures legal ownership and provides security to buyers and sellers alike. Recently, there have been updates and changes in the rules governing property registration across various states in India. In this blog, we'll delve into these new rules, their implications, and what you need to know before registering a property.

 

Understanding Property Registration

 Property registration is the process of recording legal ownership of a property with the government. It involves documenting the transfer of ownership from the seller to the buyer. This process is governed by the Registration Act, 1908, which is a central law applicable throughout India.

 

Key Changes in Property Registration Rules:

1. Online Registration Facilities: Many states have introduced online registration facilities to streamline the registration process. This enables individuals to register their properties from the comfort of their homes or offices, reducing the need for physical visits to government offices.

2. Aadhaar Authentication: Aadhaar authentication has become mandatory for property registration in several states. Buyers and sellers are required to provide their Aadhaar details for identity verification. This measure aims to prevent fraudulent transactions and ensure transparency in property dealings.

3. E-stamping: E-stamping has replaced traditional stamp papers in property transactions. It involves generating stamp papers electronically through authorized portals. E-stamping minimizes the risk of counterfeit stamps and simplifies the stamping process.

4. Property Valuation Guidelines: Many states have revised their property valuation guidelines to reflect current market rates accurately. This ensures that properties are registered at fair market values, preventing underreporting or overvaluation of property prices.

5. Mandatory PAN Card: Furnishing PAN (Permanent Account Number) details has become mandatory for property transactions exceeding a certain threshold. This requirement aims to curb black money transactions and enhance tax compliance in real estate dealings.

6. Verification of Title Documents: Authorities now conduct thorough verification of title documents to ensure that the seller has clear and marketable title to the property. This step minimizes the risk of legal disputes arising from defective titles or encumbrances on the property.

7. No Objection Certificate (NOC) Requirements: In some cases, buyers may be required to obtain a No Objection Certificate (NOC) from relevant authorities before registering certain types of properties. This could include properties located in designated areas or those subject to specific regulations.

 

Implications of the New Rules:

1. Enhanced Transparency: The introduction of online registration facilities, Aadhaar authentication, and e-stamping enhances transparency in property transactions. It reduces the scope for fraudulent practices and ensures greater accountability among stakeholders.

2. Streamlined Processes: The adoption of technology-driven processes such as online registration and e-stamping streamlines the property registration process. It reduces paperwork, eliminates delays, and enhances the overall efficiency of property transactions.

3. Legal Compliance: The enforcement of mandatory requirements such as Aadhaar authentication and PAN card submission promotes legal compliance in property transactions. It discourages illegal practices such as tax evasion and money laundering.

4. Accurate Valuation: Revising property valuation guidelines helps ensure that properties are registered at their true market value. This prevents underreporting of property prices and minimizes the loss of government revenue.

5. Improved Investor Confidence: By enhancing transparency, streamlining processes, and promoting legal compliance, the new rules instill greater confidence among investors in the real estate sector. This could lead to increased investment inflows and spur economic growth.

 

Conclusion 

The new rules for property registration in India represent a significant step towards modernizing and reforming the real estate sector. By leveraging technology, enhancing transparency, and promoting legal compliance, these rules aim to create a more robust and efficient property registration framework. As stakeholders navigate these changes, it's essential to stay informed about the latest regulations and ensure compliance to facilitate smooth property transactions.

All you wanted to know about Online House Registration
Property

All you wanted to know about Online House Registration

If you have bought or otherwise acquired a house, this transaction needs to be registered. House registration is necessary for two reasons: 

  1. Every State maintains land records. The land record of every piece of land records the persons who have rights over that land. Hence, the land record for your house will reflect who has ownership over that house. For instance, if you are the owner, then it will mention you as the owner; if you have an easement over the land, then it will mention you as an easement-holder, and so on. 

  2. Unless you have inherited the house, the transaction by which you have acquired the house will not take effect until the transfer deed is registered. If this is the case, you need to register the house to acquire legal rights over it in the first place. 

People Also Read This: Property Registration Online Procedure and New Rules in India

House Registration Process

You will have to register your house with the local Sub-Registrar of Assurances, who has jurisdiction over the locality in which your house is located. 

Most states now allow some steps of house registration online. Depending on your State, a house registry online will be available for some (but not all) house registration procedure steps. For the remaining step[s] of the online house registry, you will need to visit the Sub-Registrar’s Office. Even in states which allow the maximum number of steps online, you have to make a single visit to the Sub-Registrar’s office.

The process typically involves the following steps:

  1. Book an appointment. You will get an appointment letter. 

  2. Pay the prescribed registration fees. You will get a receipt for the fees paid. 

  3. Present/Upload a copy of the transfer deed (the legal document by which you acquired the property, such as a Sale Agreement) and the identity proofs of the parties and witnesses. 

  4. The parties, and the witnesses, have to be physically present at the Sub-Registrar’s office at the date, and time, mentioned in the appointment letter. If all documents are in order, the Sub-Registrar will register the deed and return the original deed with the deed's registration number mentioned on it. 

Depending on your State, Steps 1, 2, or 3 can be done online. However, in every State, for Step 4, the parties and the witnesses must be present. 

The online house registration procedure for a rented house is the same as the online house registration procedure for any other house. 

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Online House Registration Check List

This online house registry checklist will help you ensure that all the requirements of the house registration procedure fulfilled: 

  1. Ensure that the transfer deed (the legal document by which you have acquired your house, such as a Sale Deed, a Gift Deed, etc.) is, in writing, signed by the parties, attested by at least two independent witnesses, and executed on stamp paper of value equal to the stamp duty payable on the transaction. 

  2. Pay the registration fees, and take a receipt. If your State allows this step to be done online, carry the receipt with you when you visit the Sub-Registrar’s office. 

  3. Some states may require you to present a true copy of the transfer deed. The Registration Rules of your State will specify this and tell you how to make a true copy (if a true copy is required).

  4. If this step is allowed to be done online in your State, upload copies of photographs, and identity proofs, of the parties and the attesting witnesses. In any case, carry copies, and originals, of all these documents at the time of visiting the Sub-Registrar’s office. 

  5. Ensure that all the parties and the attesting witnesses are present at the Sub-Registrar’s office on the appointment date and time. 

  6. The original transfer deed will be returned to you. If registration has been successfully done, ensure that the registration number is mentioned on the original deed with the Sub-Registrar's seal and signature

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Soumya Shekhar
Soumya Shekhar 03 min read 2084 Views
Online Property Registration
Property

Online Property Registration

It is essential to register the transfer of property in India, under Section 17 of the Registration Act, 1908. This Act governs the registration of transfer of immovable property in India. Registration is compulsory because the person in whose name the property is registered is the rightful and legal owner of the property. Registering a property involves various aspects. Stamp duty is levied on the registration. Registration rules of each state are different and hence, the process of registration depends upon the state where the property is located.

The property description with the number it bears, area, pin code, the property type: flat, plot, agricultural, mode of ownership: purchase, gift, lease, owner’s personal details: Name, age, occupation, parent’s name, proof of property: Title deed, power of attorney, etc. are required at the time of registering the property.

Procedure for Registration of Property

Several states have their websites for online registration like Kerala, Odisha, West Bengal, Karnataka, Tamil Nadu, Rajasthan, etc. For instance, in Bangalore, there is Kaveri Online Services(https://kaverionline.karnataka.gov.in). You can register as a user on these property registration websites. You can enter the details, such as the date of execution of the sale deed, total number of parties, and other details as part of document registration. You also need to provide ID proof-details of witnesses and buyers, property value, and the nature of the property you seek to register.

You can download the registration form for your land and the application form, from the website of the concerned authority’s office in the state. You can also visit the office and obtain the registration and application form offline. Properties in both urban and rural areas come under the jurisdiction of the State Government and are managed under a Tehsil (taluka or mandal). The e-registration of property (housing or commercial rental) is also on similar lines. The process will only differ if the land is vacant or occupied.

You will need to furnish the following documents at the time of registering the property:

  • Identity proof of parties- Aadhar Card, PAN card etc.)
  • Two passport photographs of parties involved
  • Sale deed
  • Power of authority in case the party is representing someone else.
  • If a company is a party then power of attorney/letter of authority, along with a copy of the resolution of the company’s board
  • property card
  • Acknowledgement of payment of stamp duty
  • Registration fee

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Registration of Old Property

Registration of old property was slightly different than the properties bought recently. While the law governing was the same, the facilities of online procedure were not available. Registration should be completed within four months of execution of the transfer. Before technology was used, the documents submitted took four months to be returned from the registrar’s office. However, the new registration rules in 2019 and 2020 enable the documents to be returned the same day. It is easier to register a property in the present times than it was to register an old property.

Those who read this Article also Consulted a Lawyer about Property Registration process. 

Types of Land Registration

Registering property is the last and most important step after one has bought the property. If your property is not registered in your name then it would be difficult to prove ownership in the courts. If in the future some dispute arises then it is essential to have the property registered in your name. There are various ways in which you can register immovable property such as land:

1. Full Property Value: It is one of the simplest and most straightforward ways to execute a property registry. You register your property at the full value which you have paid for the same.

2. Property Value is Higher than Circle Rate: You can register at the full property value if the value is higher than the circle rate.

3. Property Value is Less than Circle Rate: You may register a property which is less in value than the circle rate. However, the difference between the circle rate and the actual sale value of the property is considered as income and is taxed at rates appropriate to the income slab.

4. Bank Valuation: While In some cases, banks insist borrowers register the property at either full property value or higher value.

5. Sale Certificate: Applicable only in the case of bank auction properties.

6. Undivided Share Value/Sale Agreement Value: To register a property at Undivided Share (UDS) is the most common practice. For an under-construction property, the builder signs two agreements with the buyer which are the Sale Agreement and Construction Agreement. The construction agreement is towards the construction cost of the flat/property. Builders register the property at sale agreement value or UDS. This practice is adopted to save stamp duty costs.

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New rules for Property Registration in India 2020

The documents to be registered must be presented in four months starting from the registration date. As of 2020, due to computerization, copies of the documents are available on the same day. If a property is not registered, it will not serve as valid evidence in court. Unregistered property has no legal validity. In case the property is acquired by the government one cannot be entitled to compensation if the property has not been registered.

Stamp Duty Charges & Property Registration in India, 2020

Stamp duty which is a tax imposed by the government on the parties dealing in property transfer and is charged by the central and state government. The purchasers must pay the stamp duty charges on the agreement of sales that falls under Section 3 of the Indian Stamp Act, 1899.

Stamp Duty charges differ upon state rules also depends upon:

  • Property Status: Old or New
  • Property Location: rural area, City area, etc.
  • Owner’s age
  • Owner’s gender
  • Property utilization: Commercial or Residential
  • Property type: Flat or house

Property Registration Act

If you have entered into a transaction for the sale of immovable property and the value of such property exceeds INR 100, You need to register the same. Section 17 of the Registration Act, 1908 makes such registration compulsory. The Registration Act also provides for which documents are essential for the registration of property and which are optional. Fees for registration vary according to the state. If a property is not registered then it cannot be produced in the court as proof of ownership. Property should ideally be registered within four months of execution of the transfer. A maximum condonation of further four months may be allowed with the penalty for delay in registration. But the document needs to be presented for registration within eight months of execution of the transfer. 

Property registration is a complex procedure and ideally, help from a lawyer should be taken for the same. You should not delay registering your property and get the same registered within the stipulated time.