Whenever you purchase the land it is important to get the plot registered with the concerned authority to ensure legal ownership.
The plot registration process in India is governed by section 17 under the Registration Act, of 1908, applicable to the whole of India.
A plot registration has to be done with the sub-registrar within four months to make the transaction valid.
Why is Plot Registration Important?
- Plot registration reduces the risks related to frauds and assists in solving disputes with ease.
- You should know that it is mandatory to do your plot registration.
- The purpose is to record the ownership of the plot.
- If you fail to register your plot, the previous owner will be considered the legal and rightful owner of the property.
- The unregistered plot is at a higher risk of fraud.
- Without plot registration, the property is not said to be legal and can be deemed fake.
Process for Plot Registration in Bangalore
- Documents Checked for Assurance: In this step, all the documents are checked to make sure that the property is owned by the person from whom it is purchased. And the seller is authorized to sell the property and has no pending bills and loans against him. After a satisfactory result, the documentation for plot registration shall begin.
- Deed Preparation: The second step is the preparation of the final deed. Whoever has the name in the deed is the rightful owner of the home. Therefore, it is one of the most important documents when it comes to buying and selling a property. The sale of deed drafting must be completed for plot registration.
- Payment of Stamp Duty: The document is prepared by the buyer’s lawyer and is sent for stamping. This stage does not take more than a day after the payment is made a receipt is issued by the bank.
- Registration: The advocate can schedule a date in the sub-registrar office and both parties go there to complete the documentation.
- Final Execution: This is the final stage where both the buyer and the seller along with all the witnesses goes to the sub-registrar office to complete the formalities. The registration fee is calculated in this step and is paid in the form of cash/DD against a receipt.
Online Procedure for Pre-Plot Registration Process in Bangalore
With the advancement of technology, the government of Karnataka has an online portal called KAVERI.
- The portal also has a registration fee and stamp duty fee calculator to calculate the charges.
- On the online portal click on the document registration under pre-registration and fill in all the details, approvals, fees details, and book an appointment session to complete the registration process for plot registration.
- After completing the above steps, the buyer, seller, along the witnesses should go to the sub-registrar office on the scheduled date and should produce the original Id card including other original documents to complete the entire registration process.
Step-by-Step Guide for Plot Registration Online in Bangalore
- Visit https://kaverionline.karnataka.gov.in/
- Log in with a user Id and password
- Click on the document registration option
- Fill in the details like the sale deed, and other documents
- Fill in the details of the witness, buyers, and sellers
- Select the ID proof that you would produce in the sub-registrar office
- Fill in the property details
- Calculate the stamp duty
- Upload documents like the sale deed, NOC, address proof, etc.
- Select the payment details
- Book an appointment for registration.
As a final step, you need to visit the SRO’s office with the documents, and your documents will be verified. You then have to sign and collect the original documents and complete the other formalities for your registration process.
Documents Needed for Plot/Property Registration in Bangalore
- Tax pay receipt: Property owners in Bangalore are liable to pay property tax to the Bangalore Municipality body called Bruhat Bengaluru Mahanagara Palike (BBMP) every year.
- Khata Certificate: A legal document that has the buyer’s name, location, and size of the location
- Sale Deed: A sale deed or title deed is the main document by which a seller transfers his right to the property to the purchaser, who then acquires absolute ownership of the property.
- Building Plan: Building plans are a graphical representation of what a building will look like after construction. They are used by builders and contractors to construct buildings of all kinds.
- Possession certificate: A possession certificate is a document that transfers the possession of the property from the first owner to the buyer.
- Encumbrance Certificate: An encumbrance certificate is a certificate of assurance that the property is free from any legal or monetary liability.
- Sale agreement: An agreement of sale constitutes the terms and conditions of sale of a property by the seller to the buyer.
- PAN Card
- Aadhar Card
- Evidence of payment of stamp duty, transfer duty, registration fees, etc.
- Document with original signatures of all parties.
Change in The Title After Plot Registration
After plot registration happens in the sub-registrar office, the buyer of the property has to get the title updated in his/her name. This step is done with the assistance of a lawyer.
After registering the buyer needs the ownership title of the property to be changed to the buyer’s name as the owner and taxpayer of the property.
It is the change of ownership from one person to the other when a plot is transferred or sold.
Process for Change in Title
This is the longest process where you have to submit the final sale deed along with a copy of an affidavit in the office of the City Survey and Land Records Department.
- You need to get the title transferred to avoid legal issues in the future.
- Rs 100 is charged as the application fee.
- In the application, you will have to mention your property details, address, and registration date.
- After the application is submitted the tax on the property is calculated and a letter of mutation is issued by the buyer.
- By mutating the plot/property the new owner gets the property recorded in his name in the Land Revenue Department and the government can charge property tax from the rightful owner.
After following all the steps mentioned above and by paying all the charges you will legally be considered the rightful owner of the property. As a property owner in Bangalore, you need to pay charges in the form of the registration fee and stamp duty. A property owner needs to pay a very small percentage of the total cost of the plot to the state government to register the property in their name.
The Plot Registration fee Depends on Several Factors:
- The registration fee varies depending on the location
- In urban areas, the registration fee will be higher as compared to rural areas.
- The registration fee for a new property will be expensive as compared to an old property.
- The registration fee will also be higher if the property is transferred to you by a non-family member.
In Bangalore, you have to pay 1% of the total property value as a registration fee.
Stamp Duty Charges for Plot Registration in Bangalore
Stamp duty is a tax charged by the government on the sale and purchase of a property. It is a charge paid by the buyer to claim that the documents submitted are valid. The stamp duty charges are 5.6% in urban areas and 5.65% in rural areas. Be advised, that stamp duty charges in Bangalore might vary a little.
Why Is Stamp Duty Important for Plot Registration
Stamp duty is important because it provides legal status to the property transaction and It is a charge paid on or before the date of registration.
Factors That Determine Stamp Duty Charges in Plot Registration
- Age of the property
- Buyer’s age
- Nature of the property
- Location of the property
- Amenities and services
Stamp duty charges in Bangalore are the same for men and women. There is no difference like some states have.
In case when a male and a female in Bangalore buy a joint property, stamp charges will be 5% on properties above 35 Lakhs, 3% on properties between 21 Lakhs to 35 Lakhs, and 2% on properties less than 20 Lakhs. The registration charge will be 1% of the total value.
Surcharge on Stamp Duty in Bangalore for Plot Registration
A cess of 10% and a surcharge of 2% are applicable for properties priced above Rs35 lakhs. You as a property owner should keep some budget for cess and surcharge as well.
For your information
Housing and Urban Affairs Secretary Durga Shanker Mishra in a recent webinar said that the ministry has been urging states to consider cutting down stamp duty across the country.
Property Guideline Value for Plot Registration
It is the cost estimated by the government. The government is authorized to fix the property guideline value for all the areas in the state. Property guideline value is the market value of the property. The property guideline value shows the real market value of the property.
The system was first introduced in Karnataka in the 1990s. Well-developed locations have higher guidance value. Underdeveloped locations have lower guidance value. It is a source of revenue to the government and affects the pricing of the property.
How to Calculate the Guidance Value of Property in Bangalore?
1: Visit the online portal KAVERI.
2: opt for basic/advanced search
3: Type in details like
· Name
· Area
· Name
· District
· Property usage type
· Property type
· Total area and measurement.
4: Other details that you have to fill in are
· The construction type,
· Annexure rules,
· Parking type etc.
Government Change Guidance Value in Bangalore
The Government of Karnataka has confirmed that they will not be increasing property guidance value throughout the state till 2021. The guidance value of Bangalore 2020 was already revised to stand at 25% in January 2019.
After following all the steps mentioned above and by paying all the charges you will legally be considered the rightful owner of the property.
A registration document with a stamp duty tag is considered a legal document. It is therefore very important to pay the charges for plot registration to claim the property legally. Brick&Bolt is a house construction Company in Bangalore providing the best house construction services in Bangalore.