The process ensures legal
validity and there is a specific time limit for the same.
Is registration compulsory for
all types of transfer of immovable properties? What is the effect of
non-registration?
There are questions that most
home buyers ask before the purchase of transaction goes forward.
Except in case of transfer of
shares of a co-operative housing society and housing limited company where
registration is optional, virtually to all cases of transfer of immovable
property like conveyance, gift deed, lease deed (above one year), mortgage
deed, exchange deed, power of attorney to sell for consideration, etc. has to
be registered compulsorily under Registration Act, 1908.
If a particular document is
required to be registered under The Registration Act, 1908 and is not
registered then as per Section 49 of The Registration Act, 1908, that document
becomes inadmissible in the court of law.
In other words it loses its
legal validity in the eyes of law. i.e. the proper legal title will not pass on
to the purchaser/transferee i.e. the title will be defective if registration of
the document is not done.
However, other documents like
agreement for sale made by builder in favour of purchaser is to be registered
compulsorily under the Maharashtra Ownership Flat Act, 1963 and lease deed
(below one year), leave and license agreement and tenancy agreement is to be
registered compulsorily under The Maharashtra Rent Control Act, 1999.
If this is not done, there will
be penalty levied or imprisonment on the person responsible for registering the
same, however the documents will not be considered defective on account of
non-registration and will be accepted by court as an evidence.
