Registering Property in Patna, India
STANDARDIZED PROPERTYProperty value: 1,590,262
City: Patna
Registration Requirements:
| Procedure 1. | Conduct a search in the office of Sub-Registrar and obtain a non-encumbrance certificate |
| Time to complete: | 7 days |
| Cost to complete: | INR 500 |
| Comment: | The purchaser should take search of the property in the Registry and the Revenue Office. While investigating the title it should be verified (1) that the "Patta" legal ownership document, is in the name of the Owner, issued by the Revenue Department under the Seal of the Tahsildar, (2) that the Encumbrance Certificate (EC) for the preceding 31 years (preferably) shows no mortgage or other encumbrance as still existing on the date of purchase, (3) the property is transferable and heritable, (4) the transferor is competent and/or authorized to transfer the property, (5) the transferee is qualified to be a transferee, (6) the object or consideration for the transfer is lawful, (7) the transfer has been made and completed in the manner prescribed by law, Also, all papers with regard to payment of taxes, the electricity bills and water bills need to be checked, usually by the seller furnishing receipts from bills and taxes. To conduct the search, an application has to be made @ 20 Rs /yr. Staff at the registry takes out the records and the parties/lawyer the search at the registry. It is common practice to hire a lawyer to conduct the transfer process, and the legal fees are therefore included in the cost above. Property records are not computerized, only matters related to payment methods are. |
| Procedure 2. | Obtain Stamp Paper after payment of stamp duty |
| Time to complete: | 7 days |
| Cost to complete: | INR 1000 + 8% property value (stamp duty) |
| Comment: | Purchaser has to deposit the amount of stamp duty and registration fees with the Treasury, in cash or bank draft. Once the deposit has been made and a draft of the sale agreement has been agreed, the agreement will be written and stamped on the Stamp Paper, usually by a lawyer. In Patna, since 2005, it is also possible to pay the stamp duty at a bank. |
| Procedure 3. | Lawyer prepares Final Sale Deed and Transfer Deed on Stamp Papers |
| Time to complete: | 3 days |
| Cost to complete: | 5500 (lawyer fees) |
| Comment: | It is not mandatory, but it is common practice for a lawyer to draft the sale purchase agreement and conduct procedures on behalf of clients. |
| Procedure 4. | Submit documents and receipts with the office of the Sub Registrar for registration |
| Time to complete: | 1 (submission) + 60 days (processing) |
| Cost to complete: | INR 1000 + 2% property value (to Patna Municipal Corporation and Patna Regional Development Authority (PRDA)) + 2% court fee |
| Comment: |
Parties/lawyers conduct execution of the sale agreement at the office of the appropriate authority and submit documents with the office of the sub-registrar of assurance where the property is located. On presentation the same is summarily checked and the documents/annexures are counted. The areas of the District/City are demarcated and specified for valuation of the locality as per the pre-existing schedule. If the valuation of the property to be transferred is below the specified rates then the sub-rgistrar will inspect the site for verification of rate of the area and if found that the rate is below the specified price, then an additional stamp duty is demanded if the stamp duty placed is found as per standard rate applicable for the area. If sub-registrar feels that the stamp duty is less, than he fixes the day/time for inspection of site. This may take 3 to 5 days. Cost involved are: Fees on the valuation is 12% (8% towards Stamp Duty+ 2% towards Patna Municipal Corporation & Patna Regional Development Authority (PRDA) cost) +2% Court Fee of the valuation all this takes one day i.e. the day of presentation. The respective authorised signatories of the Seller and Purchaser are required to be present along with two witnesses at the time of registration. Documents required to be presented are: 1. 1 copy of the sale purchase agreement, on stamp paper 2. Certified true copy of the Resolution of the Board of Directors' of both Seller and Purchaser. 3. Certified true copies of Certificate of incorporation of both Seller and Purchaser. (Not always required to be presented.) The documents are submitted to the Reader of the Sub-Registrar, Assurances for scrutiny. After scrutiny, the Reader indicates the Registration fee required, on the document itself. The due registration fee (2% property value to the PRDA) is to be deposited with the Cashier against a receipt. After depositing the fees, the documents are required to be presented before the Sub-Registrar by the parties in accordance with Section 32 of the Registration Act, 1908. Normally, as per practice the Seller hands over the peaceful vacant and physical posession of the property to the Buyer simultaneous to the Deed being presented for Registration. The document is copied into the register book, copies of the document are pasted onto 2 indexes one titled name and property, and the other titled accounts and reports. The document is delivered on the production of the receipt issued by the cashier in respect of the document at the time of presentation. |
| Procedure 5. | Apply to Municipality for mutation of the title of the property |
| Time to complete: | 1 day (submission of application for mutation) + 40 days (time to receive confirmation of mutation in the mail) |
| Cost to complete: | INR 5500 |
| Comment: | After receipt of the registered title deed (procedure 4), an application is made by the Purchaser to the Municipal Authority seeking mutation of the title of the property in his favour. The authorised signatory has to submit the duly signed application along with affidavit, indemnity bond and a certified/notarised copy of the registered title deed. After assessment of the request for mutation, it will take about 40 days for the Municipal Authority to settle the rateable value for levying tax on property and then to issue a letter of mutation in favour of the purchaser certifying the fact that the property has since been mutated in the Purchaser's name. Parties must return to the Municipality to obtain the original mutation papers. |