Registration of Agreement in Karnataka- Everything You Need to Know

When it comes to purchasing a property in Karnataka, registering the agreement is an essential process that requires strict compliance. In this article, we will cover everything you need to know about the registration of the agreement in Karnataka.

What is the Registration of Agreement?

Registration of agreement is a legal process of registering a property transaction between two parties. It involves the transfer of ownership of the property from the seller to the buyer. The agreement of sale is required to be registered with the sub-registrar office under the Karnataka Registration Act, 1908 and the Karnataka Stamp Act, 1957. The registration of the agreement establishes the legality of the transaction and ensures that the buyer gets complete ownership of the property.

Documents Required for Registration of Agreement

The following are the essential documents required for registering the agreement:

1. The original agreement of sale

2. Copy of the sale deed

3. Property documents such as the khata certificate, tax receipts, and previous sale deeds

4. Identity proofs of both the buyer and seller, such as Aadhaar Card, Passport, Voter ID Card, etc.

5. PAN Card of both buyer and seller

6. 2 passport size photographs of both buyer and seller

7. Encumbrance certificate (EC) for a period of 13 years.

Process of Registration of Agreement

The process of registration of agreement involves the following steps:

1. Stamp Duty Payment: The buyer needs to pay the stamp duty in the sub-registrar office based on the value of the property as per the guidance value of the area.

2. Verification of Documents: The sub-registrar verifies the documents submitted and checks for any discrepancies.

3. Execution of the Agreement: Both the buyer and the seller need to sign the agreement in the presence of two witnesses.

4. Registration of Agreement: The agreement is registered by the sub-registrar after verifying all the documents and paying the registration fee.

5. Collection of Documents: Once the registration process is completed, the buyer receives the registered agreement, and the seller receives the sale consideration.

Stamp Duty and Registration Fee

The stamp duty and registration fee are calculated based on the guidance value of the property. The stamp duty in Karnataka is 5% of the property value, and the registration fee is 1% of the property value. The registration fee is capped at Rs. 30,000.

Conclusion

Registration of agreement in Karnataka is a crucial process that ensures the legality of the property transaction. The registration process involves verifying documents, execution of the agreement, and paying the stamp duty and registration fee. The buyer needs to submit all the required documents and pay the stamp duty and registration fee to complete the registration process. It is essential to follow the registration process strictly to avoid any legal issues in the future.