Registering Property in Chennai, India
STANDARDIZED PROPERTYProperty value: 1,590,262
City: Chennai
Registration Requirements:
| Procedure 1. | Obtain tax clearance certificate from local and municipal tax authorities |
| Time to complete: | 3 days |
| Cost to complete: | no cost |
| Comment: | The parties or their representative verify with local and municipal tax agencies that all taxes and charges payable have been paid up to date. |
| Procedure 2. | Purchaser checks from the Registrar of Companies about any existing charges against the property |
| Time to complete: | 2 days |
| Cost to complete: | no cost |
| Comment: | Search in the local court registry for any litigation in respect of the property or Insolvency proceedings against an Individual or winding-up proceedings against the Company or charges created over the property with the Registrar of Companies. The services are computerized. |
| Procedure 3. | Conduct a search in the office of Sub-Registrar and obtain a non-encumbrance certificate |
| Time to complete: | 3 days |
| Cost to complete: | INR 7500 (including legal fees) |
| Comment: |
A computerized Encumbrance Certificate is issued for a period after 1987 in Chennai. Prior to that manual EC has to be obtained, which generally takes more time (15-19 days). Officials of the sub-registrar conduct the searches and issue the EC, upon receiving an application from the Purchaser/lawyer. Although a lawyer is engaged to make an application and follow-up with the sub-registrar, without legal fees, an encumbrance certificate is issued @ Rs 100/-per year, if the EC is to be procured directly from the Registry. There is also a facility for making the application for an EC online, fee structure for which is as follows- EC application fees- Rs 1/- EC search for first year- Rs 15/- EC search for subsequent years (per year) Rs 5/- EC computer search- Rs. 100/- Courier charge- Rs 25/- While it would take about 3 days to obtain the EC after for the period after 1987, as they are computerized; for the period prior to 1987, obtaining an EC would take about 15-20 days. |
| Procedure 4. | Purchaser deposits stamp duty with the State Treasury and obtains Stamp Papers |
| Time to complete: | 4-9 days |
| Cost to complete: | INR 1,000 + 8% of the property value |
| Comment: | Procuring stamps from the treasury may take longer, as it would depend upon the availability of stamps. In Chennai one can obtain stamp paper from stamp vendors; it may take less time. Vendors are to be given some payment, the amount of which varies depending upon the value of stamps to be procured. |
| Procedure 5. | Lawyer prepares Final Sale Deed and Transfer Deed on Stamp Papers |
| Time to complete: | 3 days |
| Cost to complete: | INR 5500 |
| Comment: | It is common practice in Chennai to hire a lawyer to draft the deed and assist in the transfer. |
| Procedure 6. | Submit documents and receipts with the office of the Sub Registrar for registration |
| Time to complete: | 17 days |
| Cost to complete: | 1% of property value+ INR 100 (Computer charges) + INR 60 (Sub-Division of survey number) |
| Comment: |
The deed for registration is presented before the in charge of Registration who sits in the office of the Collector. On Presentation the same is summarily checked and the documents/annexes are counted. The sub-registrar checks the stamp duty as per valuation and orders for depositing the Registration charges/fees along with execution fee. The areas of the District/City are specified for taking valuation of the locality as per pre-existing schedule and if the valuation of the same is below the same then sub-registrar inspects the site for verification of rate of the area and if find below the specified rates then additional stamp duty is demanded. If the sub-registrar feels that the stamp duty is less, then he fixes the day/time for inspection of site. This may take three to five days. Documents needed: The respective authorized signatories of the Seller and Purchaser are required to be present along with two witnesses at the time of Registration Documents which are required to be presented are: 1. Document required to be registered (in duplicate) 2. Two Passport size photographs of the authorized signatories of both parties. 3. 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 Gazetted officer. 4. Certified True copy of the Resolution of the Board of Directors' of both Seller and Purchaser 5. Certified True copies of Certificate of incorporation of both Seller and Purchaser.) Items 4 & 5 listed above are mandatory to be produced only in the case of the Government being a party to the transaction. In all other cases, it is not mandatory. The documents are submitted to the Reader of the Sub-Registrar, 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 payment of the registration fees, 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. |
| Procedure 7. | Receive inspection and valuation of the property |
| Time to complete: | 10 days |
| Cost to complete: | INR 5500 |
| Comment: | The Registrar will determine whether an inspection and valuation is necessary. If this is the case, parties wait for the inspector and his report-there is no need to make an appointment, he comes at will. Any deficit stamp duty and registration charges will have to be paid before the original document is released. |
| Procedure 8. | Apply to Municipality for mutation of the title of the property |
| Time to complete: | 18 days |
| Cost to complete: | INR 5500 |
| Comment: |
The authorized signatory has to submit the duly signed application along with affidavit, indemnity bond and a certified/notarized copy of the registered title deed. After assessment of the request for mutation, the Municipal Authority settles the rate value for levying tax on property and then issues a letter of mutation in favor of the purchaser certifying the fact that the property has since been mutated in the Purchaser's name. Records are computerized in Chennai so time to mutate the title is faster than elsewhere. |