Importance of registration:
According to Nitin Bansal, MD, Prithu Homes, “Registering the property is obligatory when one buys a house, land or commercial shop as it confirms your legality to carry out any transaction. We can also say that, it gives complete ownership rights to the owner. A person is considered the legal owner of a property only after he gets the property registered in his/her name”. “As per the rule by Supreme Court in 2011, all property sales would be considered worthless unless the sale act was properly stamped and registered. Under Section 49 of the Indian Registration Act, 1908, the documents will not have any posture on the property and will not deliberate any transaction rights on the property. In case of an argument, he/she will not have any rights on the property if it is not registered in their name.”
“Property registration is a main aspect for any property purchase process and serves as a basis for establishing proper title to the transacted property in case of any potential argument. Hence, once the bonafide ownership of a property is established in the eyes of the law, the owner can take any necessary future action such as leasing, resale, offering the property as a collateral to raise loans, as said by Siddhart Goel, Senior Director, Research Services, India, Cushman & Wakefield.
“Home registration is proof of ownership. Unless and until the home is registered in one’s name he/she does not obtain legal title or hold any right over the home. The title of a property will always rest with some party — the developer, the previous owner or a proxy if someone has not registered the property in their name. That person or persons will be the legal owners and, in the case of an argument, they will have ownership” as said by Dhaval Monani, Founder & CEO, First Home Realty Solutions.
Why some owners can’t register their homes?
Some owners are unable to register their homes because there is some argument involving the actual title or ownership of the property. Due to various reasons such as the selling party/developer does not have a clear title or there could be some litigation going on for the property. These approvals include absence of completion or occupation certificate issued by the municipal authorities. Some legal dues outstanding against a particular property may also stand in the way of its registration. A property can’t be registered if it has been built illegally without the necessary regulatory approvals.
If a property is not considered safe, it can’t be registered. Also such a property can’t be registered if it falls under some restrictions by the government or declared as heritage property or of state or national importance, allocate for redevelopment for other purpose.
Can an un-registered property be sold?
A sale without a registration will not be considered as a legal. It is therefore, considered to register the property after every ownership change. So, if a person doesn’t have the home registered in his/her name, it would be registered in someone else’s name and the money would go to that person only.