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.
Incase 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 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 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. 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.
For more details,
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