Registration
of any document acts as notice to the public. But the registration of all the
documents is not compulsory.The transfers of Property Act 1882, the Indian
Registration Act 1902 have made the registration of certain documents
compulsory, and others optional.
Section
54 of Transfer of Property Act 1882, stipulates that sale of immovable property
value of which is one hundred rupees or more should be registered.If the value of immovable property is less than one hundred rupees,the registration of sale deed is not mandatory.But this is for academic interest only,
since, the value of any immovable property will be generally more than one
hundred rupees.Even the value is less
than one hundred rupees; it is advisable that the deed be registered.
Section107 of Transfer of Property Act 1882,prescribes that,lease of immovable
property “from year to year” or for a term exceeding one year or reserving a yearly rent must be done only by registration.The phrase from year to year, refers to a continuous lease from year to
year, that is, where the landlord have no option to terminate the lease at the
end of the year without notice.
Similarly
the phrase,“reserving yearly rents” means that the lease has no definite
period, but the annual rent is determined.The word yearly means that the lease should run year after year or
atleast more than a year.In general any
lease in excess of year and above should be registered.
Section
17 of Indian Registration Act 1902, deals with the documents, which require
registration compulsorily.
1. A
document of gift of immovable property:Gift as everybody knows, is given in
consideration of love and affection and no monetary consideration is
involved.So any gift deed irrespective of the value of the gifted property needs registration.
2. All
non-testamentary documents:
a)Which create
interest, right, title in immovable property the value of which is more than
one hundred rupees.
b)Which
extinguishes any right, interest title in the immovable property
value of which is one hundred rupees or more for present or future.
c)Which declare,assign,limit or restrict the interest, title, right in immovable property,
value of which is one hundred rupees or more.
3. All
non-testamentary documents which acknowledge the receipt or payment of any
consideration on account of the transactions pertaining to right, title,
interest in the immovable property.
4. All
non-testamentary documents transferring or assigning any decree or order, award
of a court, which affect the interest, rights and title in a immovable property
the value of which is one hundred rupees and above.
The
documents may create, extinguish, assign, declare, limit or restrict the
interest, right title in the immovable property for the present or for future,
but if the value of such immovable property is one hundred rupees or more, the
deed need to be registered.
Though
all types of mortgages needs registrations,the mortgages created by depositing
of title deeds,called as equitable mortgage,is not compulsorily registerable.Mostly, banks and financial institutions use this mode of mortgages.However
memorandum of deposit of title deed should be registered
Testamentary means, relating to the WILL and non-testamentary means documents not connected
with WILL.The WILL is a document, which states that who has to succeed to the
assets, properties of the person, who writes the WILL (testator) after his
death. WILL is not compulsorily
registerable, but it is advisable to get it registered.Indian
Registration Act empowers the State Government to exempt the registration of
any document of lease the period of which does not exceed five years and annual
rent does not exceed fifty rupees.
The
important point is,what is the effect,if the document, which is compulsorily
registerable, is not registered,Section 49 of Indian Registration Act deals
with this situation.It states clearly that such non-registered documents do
not convey transfer legally valid title to the transferee and such documents
are not admitted as evidence of any transaction affecting the property referred
in the document.Thus, the purchaser will not get legally valid title by a
unregistered sale deed.
However,it also provides an exception, that such unregistered documents may be received as
evidence in a suit for a specific performance under Specific Relief Act or as
evidence of part performance of the contract as per Section 53A of Transfer of
Property Act 1882 or in any other related transaction, not required to be
affected by a registered instrument.It is always advisable to register any
document connected with immovable property as it creates a permanent record,
which are reflected in encumbrance certificates. Further such registered
documents have higher value of evidence than unregistered documents.
For more details,
No comments:
Post a Comment