Registering Property in Hyderbad, India

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

Registration Requirements:
Procedure 1. Conduct a search in the office of Sub-Registrar and obtain a non-encumbrance certificate
Time to complete: 3 days
Cost to complete: INR 7,000
Comment: The purchaser should take search of the property in the Registry and the Revenue Office. While investigating the title it should be verified (1) that the "Patta" legal ownership document, is in the name of the Owner, issued by the Revenue Department under the Seal of the Tahsildar, (2) that the Encumbrance Certificate (EC) for the preceding 31 years (preferably) shows no mortgage or other encumbrance as still existing on the date of purchase, (3) the property is transferable and heritable, at the revenue and ULC dept) (4) the transferor is competent and/or authorized to transfer the property, (5) the transferee is qualified to be a transferee, (6) the object or consideration for the transfer is lawful. Also, all papers with regard to payment of taxes, the electricity bills and water bills need to be checked.
The purchaser should verify and confirm the abovementioned 1-6 points from the concerned departments.
Information on electricity and water bills status is not available in the Sub-Registrar. Purchaser needs to check receipts from the Seller and confirm whether up to date water and electricity bills paid.
All the records in Sub-Registrar are computerized and parties can conduct a search and most of the records are public documents. They first make an application to the Registrar to conduct the search. The registrar issues the non encumbrance certificate.
Procedure 2*. Payment of stamp duty and other fees at the Bank
Time to complete: 1 day
Cost to complete: 9% on Market Value (Stamp Duty) + 0.5% value (Registration Fees)
Comment: Stamp duty was decreased by the Government of Andhra Pradesh Vide G.O. Ms. No. 1126 dated 13th June 2005; transfer fee decreased under G.O. Ms. Nos.622, 623 and 624 dated 27th June 2005 and G.O. Ms. No. 239 dated 30th June 2005 with effect from 1st July 2005. The present applicable rates are as follows:

ALL MUNICIPAL CORPORATIONS
7+ 2+ 0.5 SPECIAL & SELECTION GRADE MUNICIPALITIES
7+ 2+ 0.5 OTHER PLACES
6+ 3+ 0.5
STAMP DUTY - 7 % STAMP DUTY - 7 % STAMP DUTY - 6 %
TRANSFER FEE - 2 % TRANSFER FEE -2 % TRANSFER FEE - 3 %
REGISTRATION FEE - 0.5 % REGISTRATION FEE - 0.5 % REGISTRATION FEE -0.5 %
Procedure 3*. Obtain Stamp Paper after payment of stamp duty
Time to complete: 2 to 7 days
Cost to complete: INR 100
Comment: Once a draft of the sale agreement has been agreed, the same is written on stamp paper of a nominal value of INR 100. The stamp paper is obtained from the registry itself. The registrar indicates the amount of stamp duty that is to be paid. This procedure is a simultaneous procedure with 2.
Procedure 4. Submit documents and receipts with the office of the Sub Registrar for registration
Time to complete: 8 days
Cost to complete: registration fee 0.5% of the market value or consideration whichever is higher (already paid at bank) + INR. 120 (scanning charges)
Comment: The Documents are submitted with the office of the Sub Registrar of Assurances within whose jurisdiction the property is located. The respective authorized signatories of the Seller and Purchaser are required to be present along with two witnesses.

The documents are submitted to the Reader of the Sub-Registrar, Assurances for scrutiny. After scrutiny, the Reader indicates the Stamp Duty and Registration fee required, which is 9% and 0.5% of the transaction value on the document itself. The Stamp duty and registration fee is to be deposited with the concerned Bank against a receipt. After depositing the stamp duty and fees, the documents are required to be presented before the Sub-Registrar by the parties in accordance with Section 32 of the Registration Act, 1908 along with the Bank receipt or challan. Normally, as per practice the Seller hands over the peaceful vacant and physical possession of the property to the Buyer simultaneous to the Deed being presented for Registration.

Thereafter 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 of records from 1980 onwards, the registered document is returned same day.

It is general practice to approach the office of the Sub-Registrar, Assurance in advance for their examination, based on which they will calculate the stamp duty and registration fees payable so that payments can be arranged accordingly. This enables speedy registration without wasting of time of the signatories on the day of registration. Further it helps in avoiding situation arising due to discrepancies in calculation of the amount to be paid.

The documentation shall include:
1. Document required to be registered ( in duplicate)
2. Four 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 and the power of attorney in favor of the person executing the sale deed.
5. Certified True copies of Certificate of incorporation of both Seller and Purchaser.
Procedure 5. Apply to Municipality for mutation of the title of the property
Time to complete: 18 days
Cost to complete: INR 10,000
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.
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. Records in Hyderbad Municipality are computerized, hence the efficient time in which they mutate the title.
The buyer has to collect the document from the authorities.