More clar­ity on im­move­able prop­erty laws

The rev­enue depart­ment’s re­cent cir­cu­lar clears con­fu­sion over prop­erty reg­is­tra­tion

HT Estates - - HTESTATES - Su­nil Tyagi

The Depart­ment of Rev­enue of Delhi re­cently is­sued a cir­cu­lar to all reg­is­trars and sub-reg­is­trars to bring more clar­ity to the process of reg­is­tra­tion and cer­tain other issues, and for the smooth func­tion­ing of the de­part­ments. Cer­tain mat­ters re­gard­ing in­stru­ments deal­ing with im­move­able prop­erty were also clar­i­fied.

Col­lab­o­ra­tion and builder­buyer agree­ments

The depart­ment has said that a col­lab­o­ra­tion agree­ment t hrough which t he owner t rans­fers his prop­erty f or de­vel­op­ment/con­struc­tion to the builder under con­sid­er­a­tion is also com­pul­so­rily reg­is­tra­ble under Section 17(1-A) of the Reg­is­tra­tion Act. Stamp duty should also be charged for it under the In­dian Stamp Act. Sim­i­larly, a builder- buy­ers agree­ment in which pos­ses­sion is handed over against con­sid- er­a­tion, has to be com­pul­so­rily reg­is­tered.

Agree­ment to sell

It has been clar­i­fied that doc­u­ments con­tain­ing a con­tract to trans­fer an im­move­able prop­erty for con­sid­er­a­tion where pos­ses­sion of prop­erty is handed over to the buyer, under Section 17(1-A) of the Reg­is­tra­tion Act, is com­pul­so­rily reg­is­tra­ble, so as to pro­tect rights of buyer. It is fur­ther clar­i­fied that such agree­ments to sell are valid doc­u­ments and a sub-reg­is­trar has to reg­is­ter the same.

As­sign­ment of lease

Lease­hold proper t i es can be duly trans­ferred through agree­ment for as­sign­ment of lease which is com­pul­so­rily reg­is­tra­ble as per Section 17 of the Reg­is­tra­tion Act, for which stamp duty can be charged as per the In­dian Stamp Act.

GPA in the na­ture of sale

The sub-reg­is­trars have been di­rected to look into the con­tents of doc­u­ments to as­cer­tain their na­ture for the pur­pose of stamp duty. It has been no­ticed that to avoid stamp duty on con­veyance, the doc­u­ments are pre­scribed in the form of gen­eral power of at­tor­ney (GPA). There­fore, it has been clar­i­fied that when the doc­u­ment is pre­scribed in the form of GPA but con­tains cer­tain clauses in the na­ture of con­veyance then the same shall be deemed as con­veyance and the sub-reg­is­trar shall re­fer it to the col­lec­tor of stamps.

The few in­dica­tive clauses for iden­ti­fy­ing such doc­u­ments are as under:

The con­sid­er­a­tion has been paid for ex­e­cu­tion of the power of at­tor­ney. The power of at­tor­ney pre­sented is “ir­rev­o­ca­ble” in na­ture.

T h e p owe r o f at t o r n e y em­pow­ers the at­tor­ney to sell, gift, ex­change or permanently alien­ate the im­move­able prop­erty and the con­sid­er­a­tion re­ceived thereof is re­ceiv­able in the name of the ex­e­cu­tants.

Not au­tho­rised

Sub- re gi s t r ars have been in­structed not to reg­is­ter in­stru- ments that per­tain to im­move­able prop­er­ties that have been booked as unau­tho­rised con­struc­tions by the Mu­nic­i­pal Cor­po­ra­tion of Delhi.


All com­pul­so­rily reg­is­tra­ble doc­u­ments have to be pre­sented for reg­is­tra­tion within four months of ex­e­cu­tion of the in­stru­ment. If the doc­u­ment is pre­sented be­yond t he per mis­si­ble limit, it may be al­lowed for reg­is­tra­tion upon pay­ment of fine upto ten times and in such cases, pro­vided this de­lay shall not be of more than four months. Fur­ther, such doc­u­ments are to be pre­sented for reg­is­tra­tion in the of­fice of the sub-reg­is­trar, in whose ju­ris­dic­tion part or whole of the prop­erty is sit­u­ated.

The sub- reg­is­trar should en­sure that the site plan of the prop­erty is an­nexed to the in­stru­ment.

The sub- reg­is­trar should en­sure that rel­e­vant de­tails re­gard­ing the prop­erty duly filled as per the rel­e­vant form is at­tached to the in­stru­ment. A will can be reg­is­tered at any time after its ex­e­cu­tion. Also, it can be reg­is­tered in the of­fice of any sub-reg­is­trar. A sub-reg­is­trar can­not with­hold the reg­is­tra­tion due to a com­plaint by any party re­gard­ing ti­tle un­less there is a stay or­der is­sued by a court of law.

A sub-reg­is­trar can de­mand Aad­har card/en­rol­ment slip for iden­ti­fi­ca­tion of the par­ties.

This cir­cu­lar will now ease the con­fu­sion and ac­cord lu­cid­ity to the process of reg­is­tra­tion in Delhi.


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