Guide to the Apartment registration process

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Guide to the Apartment registration process


Registration of property involves a certain process since it gives legal rights over the property to the buyer. This blog acts as a guide for the registration process.

Buying an apartment or villa is a long and tiresome process, but it’s also satisfying since you’re investing your hard-earned money in an immovable asset. Investment in property always appreciates in the future. Therefore following the proper process of purchase is necessary. One such process is the registration of property. Registering a property gives the owner proper ownership and is an essential step. The proper registration of property after scrutinising all the mandatory documents will help buyers avoid legal hassles in the future. There is no doubt that registering property incurs an expense, but it is indispensable, as it is mandatory to protect purchasers in the event of any future disputes. We hope this article will assist potential buyers in understanding the entire property purchase and registration process.

Booking an apartment:

Booking an apartment

Once the decision to buy a new apartment / villa is made, the buyer should learn about the builder and their previous projects’ track record. By doing so, one can verify the credibility of builders, their timely delivery of projects, and their financial position. As soon as the project that needs to be bought is chosen, be sure that the builder has registered it under RERA. As buying a house involves a great deal of money, it is important for buyers to book an apartment with a credible builder to ensure that their investment will be a wise one. One wrong choice could result in severe stress and financial liability for the buyer.

Scrutinising of Legal Documents:

Scrutinising of Legal Documents

Any property buyer should scrutinize legal documents before purchasing a property. An examination of legal documents such as the title deed, Patta, encumbrance certificate, layout approval, building approval, and licence, etc., certifications from applicable statutory authorities, and the occupancy certificate (if the construction has been completed) is necessary and it can be done with the help of legal consultants. As a result of this process, the buyer will find out whether the property has any legal complications. It also safeguards the buyer’s interest. In case of a second sale, please ensure that the property tax for the property is paid. If the property falls under municipal/ corporation ensure metro water and sewage charges are paid too.

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Construction Agreement:

Construction Agreement

It’s a legally binding document between a builder and purchaser stating that the builder must construct the building on the plot specified according to the approvals and plans. In addition, the construction completion date, penalty clause, and other terms will be included in the agreement. Within four months of signing the construction contract, the construction agreement must be registered. The prevailing charge for the registration of the construction agreement is 2% of the construction cost (1% Stamp Duty+1% Registration Fee). Registration of the undivided share of land will only be possible after a construction agreement has been registered.

Sale Agreement For UDS:

Sale Agreement For UDS

Undivided share of land is a chunk of land that will belong to the buyer when they purchase an apartment in a complex in which the entire construction of the project will occur. Among the flats in the project, each will own a proportionate share of the land. Prior to purchasing a property, it’s always recommended that the buyer should check the UDS since the future value of the property is based on its land value, not its structure. Due to this, the sale agreement is an important document that indicates that ownership of land will be transferred in the future upon fulfilment of certain terms and conditions.

Stage-based payment:

Stage-based payment

Builders collect payments from buyers using stage-based payment methods. Their payment schedules link payments to the completion of certain stages or pre-agreed activities that are mentioned in the agreement. This reduces the likelihood of disputes. In the payment schedule, the starting date of the agreement and the completion date of the project are listed, along with the amount of the first payment, timeframes for the following payments after the initial payment, and total construction costs.

NOC from bankers:

NOC from bankers

Getting a No Objection Certificate from the builder’s bank is a very important process in case the builder has pledged the project documents for construction finance. This NOC makes sure that there are no ongoing mortgages on the property or project since most builders usually take mortgages to complete the project.

Registration of UDS:

Registration of UDS

Registering UDS is an important process since it denotes the actual transfer of the share of land. The details about the buyer and seller such as their name, age, and addresses, and the property details such as total area, the exact location, and boundaries of the property, and the total amount paid. The builders should also confirm that there is no lien attached to the property. For registering UDS the registration charges and stamp duty are calculated on the basis of the share of land. The prevailing charges are 11% of property cost ( 7% for stamp duty and 4% for registration fee).

Handover Certificate:

Handover Certificate

In this stage, the buyers should collect the below mentioned list of documents.

  • Title deed and all legal documents in a soft copy or hard copy format.
  • Copy of building approval plans, and NOCs from statutory bodies.
  • Drawing of the own apartment and car parking.
  • Property tax, water tax receipts, electricity services receipts if applicable.

Apart from the above mentioned documents the developer also provides a handover certificate to every apartment owner during the key handover process. The builder will also provide these documents to the association formed by buyers in a project.

  • Drawing of electrical lines, earthing points, and Plumbing lines of the common area.
  • Drawing of the common area and its amenities.
  • Car parking allocation records.
  • CCTV access controls and other related details of common space.
  • Document related to lifts.
  • Completion and occupancy certificates for the complete project.

Collecting all these are necessary for the buyers to handle any discrepancies in the future hence it cannot be rushed over.

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