Indian Real Estate: Documents That Need To Be Registered Compulsorily

The Indian Registration Act, 1902 and the Transfer of property Act, 1882 contain relevant provisions specifying documents that are compulsorily registrable, and those exempted from being registered. Under the law, some documents are compulsorily registrable.These include documents related to property. Registration of a document acts as a notice to the general public.

Under section 17 of the Indian Registration Act, 1902, there are a few documents that require registration compulsorily. These include:

A document of gift of property. Any gift deed irrespective of the value of the gifted property needs registration.

All non-testamentary documents that create interest, right or title in the property. All non-testamentary documents that extinguish any right, interest or title in the property.

Documents that declare, assign, limit or restrict interest, title or right in property.

All non-testamentary documents that acknowledge the receipt or payment of any consideration on account on a transaction pertaining to right, title or interest in property.

All non-testamentary documents transferring or assigning an award of a court which affects the interest, right and title in a property.

The documents may create, extinguish, assign, declare, limit or restrict interest, right or title in a property for the present or in the future.

Under Section 107 of the Transfer of Property Act 1882, lease of property from year to year, for a term exceeding one year, or reserving a yearly rent, must be done only under registration. The term “year to year” refers to a continuous lease from year to year – where the landlord has no option to terminate the lease at the end of the year without notice. The term “reserving yearly rent” means the lease has no definite period, but the annual rent is determined. The word “yearly” means the lease should run year after year or at least for more than one year. As such, any lease for over a year should be registered.