An article about " DOCUMENTS, COMPLUSORILY REGISTERABLE "

DOCUMENTS,COMPLUSORILY REGISTERABLE

All the documents to various transactions need not be registered with Registrar of Assurance. The transfers of Property Act, the Indian Registration Act have made the registration of certain documents compulsory, and others are optional.

Section 54 of Transfer of Property Act 1882, stipulates that sale of immovable property value of which is one hundred rupees or more should be registered. If the value of immovable property is less than one hundred rupees, the registration of sale deed is not mandatory. But this is for academic interest only, since, the value of any immovable property will be generally more than one hundred rupees. Even the value is less than one hundred rupees; it is advisable to get the deed registered.

Incase of lease, the Section 107 of Transfer ofProperty Act 1882, prescribes that, lease of immovable property "from year to year" or for a term exceeding one year or reserving a yearly rent must be done only by registration. The phrase from year to year denotes, refers to a continuous lease from year to year, that is, where the landlord have no option to terminate the lease at the end of the year without notice.

Similarly the phrase, "reserving yearly rents" means that the lease has no definite period, but the annual rent is determined. The word means that the lease should run year after year or atleast more than a year.

In general any lease in excess of year and above should be registered. Section 17 of Indian Registration Act 1902 deals with thedocuments, which require registration compulsorily.

1. A document of gift of immovable property. The gift as everybody knows, it is given on consideration of love arid affection and no monetary consideration is involved. So any gift deed irrespective of its value needs registration.

2.All documents non-testamentary

a) Which create interest, right, title in immovable property the value of which is more than one hundred rupees.

b) Which extinguishes (cancels) any right, interest title in the immovable property value of which is Rupees one hundred or more for present or future.

c) Which declare, assign, limit or restrict the interest, title, right in immovable property, value of which is Rupees one hundred or more.

3.All non-testamentary documents which acknowledge the receipt or payment of any consideration on account of the transactions pertaining to right, title, interest in the immovable property.

4. All non-testamentary documents transferring or assigning any decree or order, award of a court, which affect the interest, rights and title in a immovable property the value of which is Rupees one hundred and above.

The documents may create, extinguish, assign, declare, limit or restrict the interest, right title in the immovable property for the present or for future, but if the value of such immovable property is Rupees one hundred or more, they need to be registered,

Testamentary means, relating to the WILL and non-testamentary means documentary not connected to a WILL. As you know, the WILL is a document, which deals who has to succeed to the assets, properties of the person, who writes the WILL (testator) after his death. WILL is not compulsorily registerable.

In short all documents pertaining to a immovable property, if its value exceeds Rupees one hundred, it must be registered.

Indian registration Act empowers the State Government to exempt the registration of any document of lease the period of which does not exceed five years and annual rent does not exceed Rupees fifty.

The important point is what is the effect, if the document, which is compulsorily registerable, is not registered, Section 49 ofIndian registration Act deals with this situation. It states clearly that such non-registered documents do not convey transfer legally valid title to the transferee and such documents are not admitted as evidence of any transaction affecting the property referred in the document. Thus, the purchaser will not get legally valid title by a unregistered sale deed.

However, it also provides an exemption, that such unregistered documents may be received as evidence in a suit for a specific performance under specific relief act or as evidence of past performance of the contract as per Section 53A of transfer of property Act or in any other related transaction, not required to be affected by a registered instrument. It is always advisable to register any document connected with immovable property as it creates a permanent record, which are reflected in encumbrance certificates. Further such registered documents have higher value of evidence than unregistereddocuments.