Registering Property in Chandigarh, India

STANDARDIZED PROPERTY
Property value: 1,590,262
City: Chandigarh

Registration Requirements:
Procedure 1. Conduct a search in the office of Sub-Registrar and obtain a non-encumbrance certificate
Time to complete: 5 - 7 days
Cost to complete: INR 15000
Comment: In Chandigarh, the Sub-Registrar of Assurances also functions as an ex-officio Tehsildar and is also heading the Land Revenue Offices.
That while investigation the title, the following should be verified:
(1) that the "Khata"/Mutation/Legal ownership document is in the name of the represented owner and the same has been duly issued under the seal of the Sub-Registrar/Tehsildar;
(2) that a No Encumbrance Certificate is available and the same should indicate for the past more than 30 years. The documents should indicate that there is no mortgage, or other encumbrance lies on the said property as of the date of purchase;

(1) that the owner has the marketable title to the said property and it is transferable;
(2) that the transferee is duly qualified to be a transferee;
(3) that the consideration for the transfer is lawful;
(4) that the transfer has been made in complete compliance of law;
(5) that the property being sold is free from restrictions for sale under the Capital of Punjab (Development & Regulation Act 1952) as also the Chandigarh (Sale of sites and Buildings) Rules, 1960;
(6) that it should be also checked that all the requisite taxes or dues towards the said property, including the electricity and water bills have been settled as of the date of the purchase of the property, though the vendor will usually have receipts on hand;
(7) that it should also be verified that in case the transferor is a Company registered under the Companies Act, 1956, that there is no charge on the said property u/s 125 of the Companies Act 1956 and if a charge has been created whether the same has been satisfied under the provisions of section 138 of the Companies Act 1956.
Procedure 2. Obtain a No Dues and No Objection Certificates from the Single Window Clearance of the Estate Office
Time to complete: 80 days
Cost to complete: INR 20000 (INR 10000 per certificate)
Comment: Chandigarh, being a Union Territory, is governed by the Central Government and the administration of property with regard to allotment, sales, transfers, leases, resumptions, violations, etc. lies with the Estate Office. The same is under the direct governance of the Finance Secretary who is also ex-officio Chief Administrator of Chandigarh, who reports to the Advisor of the Union Territory, who is answerable to the Governor of Punjab & Chandigarh.
Before a property deemed to be transferred is actually transferred, a No Dues certificate and a No Objection certificate must be obtained by law from the Estate Office.
With the introduction of Single Window Clearance system, the concerned applicant at the time of filing application for No objection and No dues Certificates is saved from following up with the various branches under the Estate Office about the status of his application. More so, now the applicant receives the said certificates at his given address by post via O.I.G.S. (On Indian Govt. Service.) It still takes the applicant about 3 months to obtain the said certificates from the Estate Office, although the applicant is saved from some inconvenience.
The documentation shall include:
NO OBJECTION CERTIFICATE FOR SALE
Application for NOC from the Owner/General Power of Attorney (GPA).
Specimen signatures of the Owner/GPA duly attested by Magistrate.
Passport size photograph of Owner and purchasers (2 each)
Indemnity Bond of Seller
Liability Affidavit of Purchaser
In case of GPA, an affidavit that the executant of GPA is alive, has not been revoked and there is no under hand sale and the GPA has not been executed to circumvent the Stamp Duty.
In those cases in which the owner lives abroad, an affidavit is required that the sale proceeds will not be sent outside India.
Photocopy of GPA duly attested by Notary.
Clearance of previous Mortgage/Loan/Redemption Deed.
NO DUES CERTIFICATE
Application from the owner/GPA.
In case application through GPA, notarized copy of GPA and an affidavit that GPA is still valid and alive.
Procedure 3. Purchaser deposits stamp duty with the State Treasury and obtains Stamp Papers
Time to complete: 1 day
Cost to complete: 6% property value (stamp duty)
Comment: Once a draft of the sale agreement has been agreed, the same must be written and stamped on the special Stamp Paper that is obtained after payment of stamp duty to the State Treasury at Chandigarh.
The Treasury clerk will issue the receipt of amount deposited, which shall be annexed with the application for registration presented before the Sub-Registrar at the time of registration of the property (Procedure 5)
Procedure 4. Lawyer prepares Final Sale Deed and Transfer Deed on Stamp Papers
Time to complete: 3 days
Cost to complete: INR 5000
Comment: It is common practice in Chandigarh to use a lawyer for this type of transaction.
Procedure 5. Submit documents and receipts with the office of the Sub Registrar for registration
Time to complete: 10 - 12 days
Cost to complete: 1% property value
Comment: The documents are submitted with the office of the Sub Registrar of Assurances within whose jurisdiction the property is located. The respective authorized signatories of the Seller and Purchaser are required to be present along with two witnesses in order to execute the sale agreement.

After it is established that the documents are in order, the same are placed before the Reader, who then calculates the registration fees required for the purposes of registration. Generally, 1% of the transaction value or a maximum of INR 30,000 (whichever is less) is levied as registration fees. 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 possession of the property to the Buyer simultaneous to the Deed being presented for Registration.

Once the above process is complete, the documents are kept for stamping and a receipt to this effect is issued to the transferee. The documents are retained with the offices of the Sub-Registrar for a period of at least 3 working days and then the same are returned duly stamped upon the presentation of the receipt. The offices of the Sub-Registrar however, retain one copy after duly registering new ownership in their records after assigning a number and date.

Thereafter endorsements are made under Section 52, 58 and 60 of the Registration Act on the document after completion of procedures before Sub-Registrar. 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.

The documentation shall include:
Documents which are required to be presented are :
1. Document required to be registered (in duplicate)
2. Two Passport size photographs of the authorized signatories of both parties
3. Photo -identification of each party and witnesses i.e. Voters' Identity Card, Passport, identity Card issued by Govt. of India, Semi Govt. and Autonomous bodies or identification by a Gazette Officer.
4. Certified True copy of the Resolution of the Board of Directors' of both Seller and Purchaser and power of attorney, where applicable (already in possession of seller)
5. No Dues Certificate (obtained in Procedure 2)
6. No Objection Certificate for Sale (obtained in Procedure 2)
Procedure 6. Apply to Municipality for mutation of the title of the property
Time to complete: 33 days
Cost to complete: INR 4000 - 5000
Comment: After the receipt of the duly Registered Title Deed an Application is made to the Land Survey Department as well as Municipal Authority seeking mutation of the title of the property in its favour. The Authorized signatory has to submit the duly signed application along with Affidavit, Indemnity Bond and the Certified copy of the Registered Title Deed. After the assessment of the requested mutation the Land Survey Department will enter the name of the buyer in the Property Card of that particular property. The Municipal Authority settles the rateble value for levying tax on the property and issues a letter certifying the same. Time to mutate the title in Chandigarh may be less than in other Indian cities thanks to partial computerization of records and lower population.