In today’s article, we will talk about a major decision of the Supreme Court which is related to the ownership of property. Does mere registration of property not prove the ownership of the property, other documents are necessary .
The Supreme Court issued guidelines in one of its decisions that mere registration of property does not prove legal ownership of that property, registration is a process that establishes a record of the transaction between the seller and the buyer and does not guarantee legal title or ownership. According to the guidelines of the Supreme Court, having other documents to prove the ownership of the property will prove your ownership.
To prove ownership, it is necessary to have these documents apart from property registration.
Why is mere registry not enough to prove ownership of property?
The Supreme Court’s decision stated that the registry alone is not sufficient proof of ownership of the property, clarifying the difference between legal ownership and property registry, saying that the registry of the property is a part of a procedural formality and not a final certificate of ownership of the property. Ownership of property includes the legal right to use, control and transfer the property.
Property registration is an official process in which the owner of an immovable property transfers his ownership to another person through a written statement and gets it registered in government records.
What is the registry like?
- To complete the process of sale and purchase of immovable property between buyer and seller, a draft of sale deed is prepared. This draft contains a written statement regarding the sale of the property and to verify this statement, there are signatures of buyer and seller and also signatures of witnesses.
- After completion of the formalities of the buyer and the seller on the sale deed, this sale deed is presented before the Registrar Officer / Sub Registrar Officer in the registry office of the area for registration.
- Clear payment of property registration and stamp duty.
- Once the property registry is complete, the property transaction has to be registered in the government land records, such as Dakhal Kharij to get the name registered in the Khatauni.
The property registry alone does not prove ownership of the property; other documents are also required.
In one of its historic decisions, the Supreme Court has ruled that the registration of property alone does not prove the ownership of a property, rather the following other documents are necessary along with the registration of the property:-
1. Sale Deed.
Sale deed, also known as sale deed/bainama, is a written legal document by which the owner/seller of the immovable property legally transfers the ownership rights of any of his immovable property to the buyer upon purchase. In this sale deed/sale deed/bainama, a complete, proper and clear description of the immovable property to be sold is recorded. Such as:-
- Type of property,
- place,
- Boundary,
- Others present at the property,
- Names of the parties – Seller and Buyer.
- names of witnesses,
- Mode of payment,
- unencumbered,
- Other required details.
2. Title Deed.
Title deed is an important legal document of immovable property, which legally certifies the ownership of immovable property, this document certifies who owns that particular property, this document shows the following details related to the ownership of the property:-
- Clear proper description of the property,
- The name of the property owner,
- Ownership history – who got it from whom,
- Details of purchase and sale,
- Transfer Description
- Other required details.
3. Transfer Deed.
Transfer deed, which is called transfer deed, is a written legal document of immovable property by which the owner of immovable property officially transfers his property to another person, according to which the person to whom the immovable property has been transferred is the owner of that immovable property and has the rights over that property. It includes the right to sell, lease or use it legally. Registry of the transfer deed of property is mandatory.
It is mandatory to register the sale deed for transfer of ownership of the property, in the absence of sale deed, the ownership of the property cannot be transferred. Mere possession, payment or handover does not transfer the ownership of the property.
4. Original Deed.
Original Deed Also known as Mool Vilada, the original deed of the property is the first and authentic legal document of the immovable property which proves the ownership of the original owner of the property. It involves the transfer of ownership of the property from one person to another. It is mandatory to register it so that the record of ownership is kept. Original Deed such as Sale Deed.
5. Non-traceable certificate.
Non-traceable certificate is a legal document issued by a government department when an item, document or other thing is not found despite full efforts to find it. This non-traceable certificate officially certifies the unavailability of the original document and that the document could not be found even after full efforts were made to find it. Non-traceable certificate is required in legal proceedings or other formal process.
The government departments issuing it can mainly be the police department or the registration department.
6. Motherdid .
Mother Deed is a document of immovable property which is the main document to prove the legal ownership of that particular immovable property. The details of the ownership history of the immovable property are written in the Mother Deed which is from the name of the initial ownership of the property to the name of all the subsequent property owners to whom the property has been transferred, in this the name of ownership of the immovable property is recorded chronologically. How did the immovable property come to whom such as sale, donation, or inheritance. This document includes the following details:-
- name of the previous owner,
- Names and signatures of the parties,
- Names and signatures of witnesses,
- Transfer date,
- The process of transfer,
- details of transactions,
- Registration number and date.
7. Possession letter.
Possession letter/possession certificate is a legal document of immovable property which certifies that the ownership right of the property has been physically transferred to the buyer of that particular property and that he is ready to take actual possession and live or use that particular property. This document is issued by the seller, builder, society in favor of the buyer.
8.Property tax receipt.
Property tax receipt is a receipt through which the owner of the immovable property fulfills his financial obligations related to that property. Property tax receipt is obtained by paying the financial burden related to the property at the municipal office of his area.
This property tax receipt confirms the payment of property tax and that the property owner has fulfilled his financial obligations related to the property from time to time. This receipt contains the following details:-
- House No. ,
- Ward No.,
- neighborhood,
- name of the landlord,
- Financial Year,
- Annual Value,
- Interest,
- Discount,
- Remaining amount,
- Current house tax deposit,
- outstanding deposits,
- Mode of payment,
- The amount paid,
- From when to when is the date of worship?
9.Free of encumbrance certificate.
Twelve Year / Encumbrance Free Certificate is issued by the Registrar’s Office under Section 57 of the Registration Act, 1908 and Rule 327 – 328 of the Registration Manual in respect of the property concerned. This encumbrance free certificate contains the information regarding the property being free from encumbrances.
10.Will Deed.
A will is an important legal document through which the owner of an immovable property makes a will during his lifetime and transfers full rights over his property and other assets to his heirs or any interested relative.
The Will Deed becomes effective in favour of the person in whose favour the Will is made after the death of the testator.
11.Gift Deed.
A gift deed is a legal document through which the owner of a movable or immovable property transfers his property to another person at his own will without taking any value or consideration in exchange for that property.
Section 122 of the Transfer of Property Act, 1882 defines gift as a transfer of determinable movable or immovable property, voluntarily and without any consideration, by one person called the donor to another person called the donee and which is accepted by or on behalf of the donee.
12.Certificate of Revocation filed.
Dakhal Kharij Certificate which confirms the ownership of the land and change in ownership and is issued by the Revenue Department.
Under Section 34 of the Revenue Act, every person who has purchased land will have to apply for mutation of the land in the Revenue Court after the sale deed, so that an entry can be made in the Khatauni regarding the land, as to from whom the land was purchased and to whom it was sold.
13.No Objection Certificate.
No objection certificate (NOC) is a written document issued by an institution, organization or government department certifying that they do not have any objection to a specific action or activity.
NOC in respect of a property confirms that the owner of the property has no objection to the transaction or use of the property.
- NOC from the builder,
- NOC from legal heirs,
- NOC from the building owner,
- noc for loan,
- NOC for property transfer,
14.Succession Certificate.
Succession Certificate is a legal document which establishes a relationship between the deceased person and his legal heirs, thereby giving the heirs of the deceased person the right to establish their rights over the movable or immovable property of the deceased person.
For succession certificate, the heir / heirs of the deceased have to file a petition in the civil court, the following documents have to be attached with the petition:-
- death certificate,
- Identification card,
- proof of address ,
- Proof of relationship with the deceased (birth certificate, marriage certificate)
- Affidavit (details of heirs)
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