(Advocate S Selvakumar|Property advocates in Bangalore|Property lawyers in Bangalore)
All the documents to
various transactions need not be registered with Register of Assurance.
The transfers of Property Act, the Indian Registration Act have made the registration of certain documents compulsory, and others are 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 to get the deed registered.
In case of lease, the
Section 107 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 denotes, refers to a continuous lease from year to year, that
is, where the landlord has 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 means that the lease should run
year after year or at least 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. The gift as everybody knows, it is given on consideration
of love arid affection and no monetary consideration is involved. So any gift deed irrespective of its value needs registration.
2.All documents
non-testamentary
a) Which create interest,
right, title in immovable property the value of which is more than one hundred rupees?
b) Which extinguishes
(cancels) any right, interest title in the immovable property value of which is
Rupees one hundred or more for present or future?
c) Which declare, assign,
limit or restrict the interest, title, right in immovable property, value of
which is Rupees one hundred 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 Rupees one hundred 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 Rupees one hundred or more, they need to be registered.
Testamentary means,
relating to the WILL and non-testamentary means documentary not connected to a
WILL. As you know, the WILL is a document, which deals who has to succeed to
the assets, properties of the person, who writes the WILL (testator) after his
death. WILL is not compulsorily registerable. In short all documents pertaining
to a immovable property, if its value exceeds Rupees one hundred, it must be
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 Rupees fifty.
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 exemption, that such unregistered documents may be received as evidence in a
suit for a specific performance under specific relief act or as evidence of
past performance of the contract as per Section 53A of transfer of property Act
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.
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