All documents do not require
registration compulsorily. The Transfer of Property Act, 1882 and the Indian
Registration Act, 1908 have made registration of certain documents compulsory
while in respect of certain other documents it is optional.
According
to section 17 of the Indian Registration Act, 1908 registration of documents is compulsory if they relate to an immovable property. Similarly, Section 54 of Transfer of Property
Act 1882, stipulates that sale of immovable property the value of which is one
hundred rupees or more should be registered. Since no immovable property is
available for rupees one hundred or less than rupees one hundred, implicitly
all sale deeds of immovable property need compulsory registration.
Section 17(1) of Indian Registration Act 1902, deals with the documents which require registration compulsorily.
They include:
Gift is given by the donor to the donee without any monetary consideration, but only in consideration of love and affection the donor has towards the donee. Therefore, gift deeds transferring immovable property of the value of Rs.100/- and above needs registration.
2. Other non-testamentary documents which purport to create, assign, limit or extinguish the right, title and interest in immovable property the value of which is more than one hundred rupees.
3. All non-testamentary documents which acknowledge the receipt or payment of any consideration on account of the transactions pertaining to the creation of any 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 right, title and interest in immovable property the value of which is one hundred rupees and above.
The documents may create, extinguish, assign, declare, limit or restrict the right, title and interest in the immovable property for the present or future, but if the value of such immovable property is one hundred rupees or more, the deed needs to be registered.
Though all types of mortgages need registration, mortgage created by depositing of title deeds, known as equitable mortgage, is not compulsorily registerable. Mostly, banks and financial institutions use this mode of mortgage. However, memorandum of deposit of title deed needs registration.
Section 107 of Transfer of Property Act 1882, prescribes that lease of immovable property from “year to year” or for any term exceeding one year or reserving a yearly rent must be done only by a registered instrument. The phrase from ‘year to year’, 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 “yearly” means that the lease should run year after year or at least more than a year. In general, any lease in excess of one year and above should be registered.
There are certain documents registration of which is optional. The Section 18 of the Indian Registration Act, 1908 lays down the instruments of which registration is optional. They include:
a] Instruments relating to transfer of an immovable property, the value of which is less than rupees one hundred;
b] Lease of an immovable property for a term not exceeding one year;
c] Wills
d] Deed of gift of property valued at less than Rs.100/-
Under Section 23 of the Registration Act, subject to certain exceptions, any document other than a will has to be presented for registration within four months from the date of its execution. Execution means signing of the document. If a document is not presented for registration within the prescribed period of four months and the delay in presentation of the document does not exceed a further period of four months, then the parties can apply to the Registrar for registration of the document who may direct, upon payment of a fine not exceeding ten times the actual registration fees, for registration of such a document [Sec.25].
A document relating to an immovable property can be executed out of India and later it can be presented for registration in India. As per section 26 of the Registration Act, 1908, if a document purporting to have been executed by all or any of the parties out of India is presented for registration within the prescribed period of time, the Registering Officer may, on payment of proper registration fee accept such document for registration if he is satisfied that the instrument was executed out of India and the instrument has been presented for registration within four months after its arrival in India.
The Registering Officer is empowered under sec. 34 of the Registration Act to enquire whether or not the person is the same by whom such a document purports to have been executed. He may insist on production of proof of his identity and in case any person is appearing as a representative or agent, the Registrar may ask for relevant documents to show that the agent or representative has the right to appear on behalf of his principal.
Section 49 of Indian Registration Act deals with this situation. It states clearly that such un-registered documents do not convey to the transferee a legally valid title and such documents are not admitted as evidence for any transaction affecting the property referred to in the document. However, there is an exception provided in the Act. The unregistered documents may be admitted as evidence in a suit for specific performance under Specific Relief Act or as evidence for 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 effected under a registered instrument.
Documents are mainly registered for conservation of evidence, assurance of title, and to help an intending purchaser to know if the title deeds of a particular property have been deposited with any financial institution or person for purpose of obtaining loan or advance against security of the property. Registration of documents acts as notice to the public and to protect oneself against the likely fraud. Therefore, it is advisable to register all documents connected with the immovable property irrespective of whether the registration is compulsory or not as it creates a permanent record of evidence which are reflected in encumbrance certificates.
As registered documents have higher value of evidence than unregistered documents it is always beneficial to you if you get all your property documents registered within the stipulated period irrespective of the fact that such registration is mandatory or not.
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