Registering Property in Bangalore, India

STANDARDIZED PROPERTY
Property value: 1,590,262
City: Bangalore

Registration Requirements:
Procedure 1. Conduct a search in the office of Sub-Registrar and obtain a non-encumbrance certificate
Time to complete: 15 days
Cost to complete: INR 15,000 (includes lawyer fees)
Comment: The purchaser should conduct a search of the property for a period of 30 years in the office of the Jurisdictional Sub-Registrar of Assurances where the property is located, in order to ascertain any charges or encumbrances are created in respect of the concerned property. He will apply and obtain Encumbrances Certificates for a period of thirty years on completion of the personal searches carried out on the concerned property On conclusion of personal searches, Encumbrance Certificate in Form Number 15 is issued in case of any encumbrance. For nil encumbrance, the certificate is issued in Form Number 16. While investigating the title it should be verified with the "Patta" legal ownership document, that (1) the property is in the name of the Owner, issued by the Revenue Department under the Seal of the Tahsildar, (2) the property is transferable and heritable, (3) the transferor is competent and/or authorized to transfer the property, (4) the transferee is qualified to be a transferee, (5) the object or consideration for the transfer is lawful, (6) 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 may need to be checked, especially in the case of high-consumption properties such as factories; for a warehouse, it may not be necessary. It takes 15 days because, though computerization in Bangalore is well on its way, not all previous records are computerized. Depending on the location of the property, its record may be computerized. Records are internally online at the Sub Registrar office (ie, not on the internet).
Procedure 2*. Lawyer prepares Final Sale Deed and Transfer Deed
Time to complete: 3 days
Cost to complete: INR 5000 - 10000
Comment: Normally, the Sale Deed and Transfer Deed are drafted by a deed writer or a lawyer and the print out of the same is taken out on Green paper on which the Adhesive stamp for stamp duty is to be affixed. However, by amendment in Karnataka Stamp Act, since about 3 - 4 years ago, the usage of stamp paper for paying stamp duty is discontinued in Karnataka and accordingly the stamp duty is payable by the Demand Draft at the time of registration of the document. This is different than in other states. The lawyer may also conduct searches on the property and the selling company on behalf of the client. Cursory company searches can be conducted online at a national level at the site: www.mca.gov.in.
Procedure 3*. Obtain proof of compliance with zoning and building regulations at the Bangalore Development Authority
Time to complete: 2-3 days
Cost to complete: no cost
Comment: Conduct a search at the Bangalore Development Authority (Planning Authority for the city of Bangalore) and Karnataka Industrial Areas Development Board to ascertain any land acquisition proceedings have been notified/initiated in respect of the concerned property, as well as the authenticity and validity of the layout plan/building plan sanctioned by Bangalore Development Authority/Corporation /City Municipal council where the property is situated.
Procedure 4*. Obtain tax clearance certificate from the Revenue Department
Time to complete: 1 day
Cost to complete: INR 25 - 30
Comment: Conduct a personal search in respect to verification of Khata and Tax implications in office of the revenue department under Corporation, City Municipal Council, Village Panchayath where the concerned property is situated. If the Vendor is owner for a period more than 32 years one khata suffices. If the property has been conveyed depending on each of such conveyance the subsequent owners name is to be reflected in the khata certificate, and to ascertain the same all such khata certificates are required.
Procedure 5. Submit documents and receipts with the office of the Sub Registrar for registration
Time to complete: 2 days
Cost to complete: 1% of property value (registration fee) + 8.4% of property value (stamp duty) (paid in previous procedure)
Comment: Stamp Duty consists of the following:
For CMC/ TMC/ Corp. Properties
(a) Government duty = 7.5%
(b) Infrastructure Development Corporation Cess under section 3-B KSA 1957
10% on 7.5% = 0.75%
(c) Surcharge on TDB/ Panchayat Properties
3% on 7.5 = 0.15%

Total Stamp Duty (a+b+c) = 8.40%
* CMC - City Municipal Council
TMC - Town Municipal Council
Corp. Properties - Corporation Properties

Endorsements are made under Section 52, 58 and 60 of the Registration Act on the document after completion of procedures before Sub-Registrar. The document is copied into the register book, copies of the document are pasted onto 2 indexes one titled name and property, and the other titled accounts and reports. The document is delivered on the production of the receipt issued by the cashier in respect of the document at the time of presentation. Now due to computerization, the registered document is returned same or next day.

Parties obtain a token number in order to come back later to obtain the actual certificate. Tokens are only given out until 1 pm, the idea being for the registry to only promise to process as many certificates as they can in one day. If one obtains a token by 1pm, one can be assured, except in very rare cases, that one can come back the same day in the afternoon to be registered. The registrar will ask for the documents listed below and complete registration, but he will tell the client to come back the next day to retrieve the certificate.

Furthermore, in Bangalore, offices of the Sub-Registrar have been computerized and accordingly passport size photographs are not required to be presented with the application. Digital pictures of the respective parties are taken at the said office

The documentation shall include:
Documents which are required to be presented are :
1. Document required to be registered (in duplicate)
2. 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 Gazette Officer.
3. Certified True copy of the Resolution of the Board of Directors' of both Seller and Purchaser (already in possession of seller)
4. Certified True copies of Certificate of incorporation of both Seller and Purchaser (already in possession of seller), in case the registrar demands it.
Procedure 6. Apply to Municipality for mutation of the title of the property
Time to complete: 18 days
Cost to complete: 2% of stamp duty paid in procedure 4
Comment: After receipt of the registered title deed, an application is made by the Purchaser to the Municipal Authority seeking mutation of the title of the property in its favour. The authorised signatory has to submit the duly signed application alongwith affidavit and a certified/notarised copy of the registered title deed. The fees for the application are calculated as 2% of the stamp duty paid on the transfer of the property, paid by a Demand Draft to the Commissioner of the Municipality. No Indemnity bond is required to be given After the assessment of the request for mutation, the Municipal Authority settles the rateable value for levying tax on property and then issues a letter of mutation in favour of the purchaser certifying the fact that the property has since been mutated in the Purchaser's name. During the 18 days the Municipality is checking that all relevant property taxes have been paid.
In order to apply, one needs to submit a form and the certificate of registration obtained from the previous procedure. The records at the Municipality are then updated and a letter given to the client, certifying who is the new owner and a description of the property (limits, etc.). One needs the certificate, in practice, to be able to satisfy the next buyer's search on the property to see who is the owner.