Owning a home is a dream for many. But, did you know that you need to Register your flat after you buy it? A flat needs to be registered in accordance with the law prevalent in the state in which it is bought. Every state in India has different rules for Flat Registration. Builders need to register their property under RERA, whereas buyers need to register their flat with the local registrar. Let us examine what all is required to register a flat.
Importance of Flat Registry
Have you bought a flat recently? It is necessary to register this transaction. Registry of your flat is necessary for 2 reasons:
A flat is an immovable property. Thus, buying a flat is a transaction of immovable property. Such transactions do not take effect unless registered. Hence, it is necessary to register for the purchase of your flat.
Your flat, quite obviously, is standing on a particular land. As the owner of the flat, you have certain rights over that land. Once you register your flat, the state's land records will record your name as the lawful owner of your flat. This is a crucial piece of evidence which records what rights you have over your flat.
You can also register an under-construction flat. The common misconception is that a flat cannot be registered before possession and that it can only be registered after possession. But, this is not the case. In fact, banks insist on the registration of under-construction flats before granting home loans. While such registration protects the interest of banks, the entire risk is put on the shoulders of the homebuyer.
Procedure for Flat Registration
When you bought your flat, you and the builder/seller will have executed a Sale Deed. This Sale Deed needs to be registered with the local Sub-Registrar of Assurances, who has jurisdiction over the locality in which your flat is located. Flat agreements in most states are registered online; however, the final step needs to be completed in the registrar's office.
The entire process typically involves the following steps:
Book an appointment for registering the Sale Deed: You need to register on the government's website and create a Login ID in most states. Then you need to upload the documents and book the appointment.
Pay the prescribed registration fees.
Attach copies of the Sale Deed and the identity proofs of the parties and the attesting witnesses.
The parties, and their attesting witnesses, have to be physically present at the Sub-Registrar's office at the date, and time, of the appointment.
Depending on which state your flat is located in, some of these steps can be conducted online. However, in every state, Step 4 must be conducted offline: one visit to the Sub-Registrar's office for this purpose is necessary.
For instance, for flat registration in Bangalore and the rest of Karnataka, Steps 1, 2, and 3 of the flat registration process can be conducted online on the Kaveri Online Portal. Similarly, for registering a flat in Pune and the rest of Maharashtra, Steps 1, 2, and 3 of the flat registration process can be conducted online on the IGR Maharashtra Portal.
Cost of Flat Registration
The exact registration cost for your flat will vary from state to state. Typically, the registration cost is about 1 - 3% of the market value of the flat.
Note that the flat's market value need not be the same price at which you have bought it. The sale price for your flat was determined between you and the builder/seller. This price can be quite literally anything. However, the market value of the flat is fixed and is calculated according to the rules of the state in which the flat is located. Most states now have online calculators available, which will give you a fairly precise estimate of the registration fees of your flat.
Documents Required for Registration of Flat
The following documents are required for the registry of flats:
Appointment letter, obtained after booking an appointment with the respective Sub-Registrar's office.
Proof of payment of the required registration fees.
The original Sale Deed for your flat.
Identity proofs of the parties to, and the attesting witnesses of, the Sale Deed.
Copy of the Possession Letter issued by the seller/builder.