Friday, 17 April 2015



The general perception amongst the people at large is that  registration of the  sale deed in the concerned Sub-Registrar’s office would conclude the formalities for transfer of ownership of the property from the vendor to the Purchaser or his nominee, but it is not so. The formalities in purchase of immovable property could be broadly classified into pre-registration formalities and post-registration formalities, compliance of both is a must for getting the ownership rights over  the property  transferred in totality in favour of  the purchaser or his nominee.
The term “Post registration formalities” refers to those activities which are required to be performed subsequent to the registration of the Sale Deed. They are:

Obtaining original title deeds:

Once registration of sale deed is completed, the Purchaser has to obtain all the original documents of title from the seller and compare them with the copies which his advocate had scrutinized for rendering his opinion to make sure that  the documents scrutinized and documents referred to in the Sale Deed are  the same and have been correctly spelt. If his advocate had called for production of certain other relevant original documents or certified copies, the purchaser has to ensure that such documents are also made available to him for his custody.
Generally, at the time of entering into agreement of sale only certain basic original documents are made available to the purchaser along with copies of few other documents and therefore, at the time of sale agreement, the purchaser has only skeletal original documents with him and the remaining original documents will be with the vendor himself. Thus, the purchaser has to keep in mind to collect all the remaining original documents from the vendor at the time of registration of the property.

Upon registration of the property, the purchaser  has to collect the original registered sale deed. In addition to this, it is better if he applies and gets a few certified copies of the Sale Deed for his custody and use.

Encumbrance Certificate:

Normally, encumbrance certificate for the period prior to the date of transaction will be made available for scrutiny by the vendor. In order to have Encumbrance Certificate with the reflection of the latest sale transaction between the present vendor and the purchaser, it is suggested that the purchaser may apply for up-to-date encumbrance certificate on the date of registration of sale deed itself so that he can avoid making another trip to the office at a later date for the purpose. 

Physical  Possession of the property:

Taking physical possession of the property is a very important step in a property transaction. Therefore, it is necessary for the purchaser to inspect the property at least a day prior to the date of registration to make sure that the property is free from occupation of any stranger and there is no hurdle to get possession of the property upon purchase.

In some cases, the property could have been under occupation of persons other than the owner/vendor like tenant or leaseholder, trespasser, etc. Irrespective of such occupancy by strangers, the vendor should be insisted upon to deliver vacant physical possession of the property at the time of registration so that the purchaser could exercise his right over the property and  take possession of the same immediately upon purchase and put his lock for the building.
In  case of vacant sites, it is always safe to fence such sites immediately upon purchase, though it is a little expensive. In the alternative, the purchaser may display a board on a prominent place of the site clearly indicating that “This property belongs to XYZ. Trespassers will be prosecuted”.
Periodical visits to the site are necessary to detect and prevent encroachment.

Security Deposit and Tax receipts:

Once a property is purchased, the purchaser is duty bound to make all the statutory payments due on the property to Government and other agencies. Therefore, the purchaser is to get confirmed whether property tax and other levies payable to Municipal authorities, BWSSB, BESCOM, etc., are paid up-to-date and upon finding that any payment is outstanding, either he has to make such payment himself or insist upon the vendor to effect such payments. For this purpose, the purchaser has to collect and verify the latest property tax paid receipt and all the relevant statutory payment receipts from the seller and upon visiting the concerned tax/revenue  offices.

Once the registration of the sale deed is concluded, the purchaser has to ensure that the Khatha of the property standing in the name of the vendor in the records of the concerned local authority is transferred to his  name. For such a transfer, both the seller and purchaser have to sign the application for transfer of Khatha and it is better that such an application is prepared and signed at  the time of executing  the sale deed itself to avoid complications at a later date. The application for Transfer of Khatha along with a copy of the sale deed, duly filled is to be submitted before concerned authority within whose jurisdiction the subject property falls.
The Local bodies transfer the Khatha in the name of the purchaser upon collecting transfer fee which is, generally 2%, of the stamp duty paid on the Sale Deed and issue written confirmation of transfer in the name of the purchaser. Usually, the Local bodies  reassess the property and issue assessment notice in the name of the purchaser. The tax paid receipt should be in the name of the owner.

Water and Power Meters:

Once Khatha is transferred, steps for getting the water and power connections registered in the name of the purchaser are to be initiated. For this purpose, careful verification of the receipts issued by the concerned authorities for the deposit and charges in favour of the vendor is necessary to make sure that such receipts stand in the name of the seller. A letter of No Objection addressed to the concerned authorities by the seller for such transfer of water and power connections and  the deposits made there under in the name of the purchaser is also necessary. The purchaser, along with the letter of No Objection from the seller and the latest Khatha Certificate has to apply to the appropriate  authorities for effecting such a  transfer in his name at the earliest. Upon consideration of such a request, the authorities will issue a written communication intimating the transfer of water and power connections and the deposits in the name of the purchaser.
Though the above mentioned actions are simple in nature, to have peaceful possession and enjoyment of the property purchased compliance with these is necessary.

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