Karnataka Property Registration - Procedure and Charges

The Department of Stamps & Registration of the Karnataka Government is responsible for property registrations in the State of Karnataka. The department handles over 15 lakh document registration in a year and operates with a staff strength of more than 1600 workers. Services relating to property like registration of documents and issue of encumbrance certificate fall under the purview of the Department of Stamps & Registration. In this article, we look at the process, procedure, and charges for property registration in Karnataka.

When to register property documents?

Documents relating to the transfer of immovable property must be compulsorily registered in certain circumstances for it to be legally valid and binding. Situations, when an immovable property document must be compulsorily registered, are:

Any legal agreement which operates to create, declare, assign, limit or extinguish, in the present or the future, any right, title or interest in an immovable property.
Any legal agreement which acknowledges the receipt of payment of any consideration on account of the creation, declaration, assignment, limitation or extension of any right, title or interest in an immovable property.
Gift deed of immovable property.
Lease of immovable property for any term exceeding one year or reserving a yearly rent.
Contracts to transfer immovable property for consideration.

Note: After the death of the owner of a property does not require to register documents relating to the immovable property. The legal heirs, such as wife or children, may get the Khata transferred on the production of the death certificate of the owner with details of property held by him. Click here to know about the advantages of having a Will.

Why register property documents?

Registration of documents makes the property transaction become a permanent public record. According to the Transfer of Property Act, right, title or interest can be acquired if the deed is registered. Hence, if a deed of transfer, which is compulsorily registrable, is not registered, it will not be legally valid or enforceable.

Time Limit for Document Registration

Any property documents require registration within four months from the date of execution (signature). If the execution of the document is outside India, then four months will be counted from the date of its receipt in India. After four months, the registration of documents within another four months requires a penalty of ten times the registration fees, if the District Registrar permits. Any document registration after 8 months is not possible.

Property Purchase Checklist - Karnataka

Once you have decided to purchase a property, it is important to engage an experienced lawyer who specializes in property transactions to assist with the legal, due diligence, drafting of documents, and completion of registration formalities. Before entering into an agreement for the purchase or transferring any money, it is important to verify the details of the property, keeping in mind the following items:

Verify original documents.
Verify building plan approval, layout, etc.
Verify how the seller acquired title to the property.
Verify the Encumbrance Certificate of the property for a minimum period of 15 years.
Verify from the concerned court if there are any litigations on the purchase of the property.
Verify if there are any litigations, objections in revenue, municipal offices about inheritance, or any other matter.
Verify transactions as opposed to public policy under Section 22A of the Registration Act, 1908. If the transaction opposes to public policy, the document will not be registered

Note: If the property grants land to the member of the scheduled caste and scheduled tribe, it should be verified if the transaction is in contravention of the terms and conditions of grant and whether permission of the Government is obtained for transfer.

Procedure for Registration of Document

On completion of due diligence, the sale deed can be prepared by the executant or an Advocate and printed on stamp paper of appropriate value. It is recommended that the stamp paper be purchased from licensed stamp vendors along with the signature/license number/name and address of the stamp paper vendor on the stamp paper with treasury seal.

The document printed on stamp paper can be registered in the Sub-Registrar office in whose jurisdiction the property is situated or the District Registrar. In Bangalore Urban District, you can also visit the Office of the Inspector General of Registration for registration of documents.

Stamp Duty Charges for Property Registration

Conveyance

The stamp duty and registration fee on conveyance of immovable property is a stamp duty of 5% on the market value of the property + surcharge + cess and 1% registration fee.

Gift Deed to Non-Family Member

The stamp duty and registration fee on gift deed of immovable property is a stamp duty of 5% on the market value of the property + surcharge + cess and 1% registration fee.

Gift Deed to Family Member

The stamp duty and registration fee on gift deed of immovable property are fixed stamp duty of Rs.1000 + surcharge + cess and fixed registration fee of Rs.500.

Find Lawyers in Karnataka for Property Transaction.