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LEGAL CHAT

The following documents are compulsorily registrable:

Instrument of gift of immovable property of any value.

Non-testamentary instrument (other than a will) which purports to create, declare, assign, limit or extinguish, whether in present or in future, any right, title or interest, whether vested or contingent, in immovable property of the value of Rs.100 and upwards.

Any non-testamentary instrument which acknowledges the receipt of payment of consideration in respect of any of the aforesaid instruments.

Leases of immovable property for a period of one year or more.

Any non-testamentary instrument which transfers or assigns any decree or order or award which purports or operates to create, declare, assign, limit or extinguish, whether in present or in future any right, title or interest, whether vested or contingent in immovable property of the value of Rs.100 or upwards.

Any documents containing contracts of the nature specified in Section 53A of the Transfer of Property Act, 1882, are also to be compulsorily registrable. In this regard, it is useful to discuss the nature and scope of a contract referred to in Section 53A.

The section contemplates a contract for transfer of any immovable property in writing duly signed by the transferor and the transferee (or by any other person or persons for and on their behalf). The contract specifies the terms under which the transfer is to be effected.

In such a case, when the transferee in part performance of the contract takes possession of the immovable property and the transferee expresses his willingness to perform his part of the contract, then, in such cases the transferee is known to have what is called “equitable title to the immovable property.”

Even though the deed of transfer is not executed in his favour, the transferee has the right to be in continuous possession of the property and the transferor or any other person or persons claiming through the transferor are debarred from claiming any right or interest in the immovable property or possession adverse to the transferee and also debarred from revoking the contract in any manner whatsoever.

It is to be noted that in all the above cases, the instrument by itself deals with the vesting of rights, title and interests in immovable property and hence they are compulsorily registrable. However, now it is a well settled proposition of law that when a subsequent document merely confirms an earlier transaction in immovable property duly recorded in an instrument, such a subsequent document is not compulsorily registrable.

In this context the utility and effectiveness of sworn affidavits have to be emphasised. A sworn affidavit duly attested by a Notary or courts or statutory authorities can confirm and affirm the execution of an earlier instrument which is compulsorily registrable dealing with rights, titles and interests in immovable property.

Such affidavits by themselves need not be registered and they attract a nominal stamp duty of Rs.50 (in Karnataka). They can prove to be an effective record to confirm and affirm an earlier transaction in immovable property and can be also adduced as evidence in a court, before other legal forums and statutory authorities in any legal proceedings dealing with disputes in respect of any immovable property.

Section 18 of the Act deals with instruments where the registration is only optional and they are indicated below.

Instruments dealing with immovable property of a value less than Rs.100.

Leases of immovable property for a period less than one year.

Instruments dealing with movable property, wills and other documents which are not specifically referred to as compulsorily registrable under Section 17 of the Act (as mentioned above).

In all the above cases, where the instrument is compulsorily registrable, the instrument has to be presented for registration before the appropriate registration authorities within a period of four months from the date of its execution.

In the case of a decree, order or award relating to an immovable property any instrument dealing with such a decree, order or award has to be presented for registration within a period of four months reckoned from the date on which such decree or order or award became final and conclusive by reason of a confirming judgment of the highest appellate court becoming final or by reason of the time for filing of appeals against the original decree or order or award getting lapsed and time barred (Section 23).

The legal steps relating to the presentation of documents before the registering authority and scrutiny of the contents will be discussed in the subsequent issues.

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