Property law, stamp duty & registration
Circle rate vs market rate, registration, encumbrance certificates, mutation, GPA sales, succession and selling property as an NRI.
Questions answered
Key laws, rules, forms and judgments
Indian Stamp Act 1899 - instruments chargeable to duty
Any document that creates, transfers or extinguishes a right in property - a sale deed, gift deed, mortgage, lease or power of attorney - must carry the correct stamp duty before it has legal effect. Stamp duty is a tax on the document itself, separate from registration, and the rate depends on the type of instrument and the state where the property sits.
Indian Stamp Act 1899, Section 3 and Schedule I · in force · source
Indian Stamp Act s.17 - time of stamping instruments
The law requires that any document executed in India be stamped before or at the time it is signed, not afterwards. Paying stamp duty after execution is technically a violation, and while it can usually be cured by paying a penalty later, it is safer to buy the e-stamp or franking before signing.
Indian Stamp Act 1899, Section 17 · in force · source
Indian Stamp Act s.33 and s.35 - impounding and inadmissibility
If a court, registrar or any official authorised to take evidence sees a property document that is unstamped or under-stamped, the law requires them to impound it on the spot. An unstamped or insufficiently stamped document generally cannot be used as evidence in court until the shortfall and a penalty are paid - so under-stamping to save money now can make a document worthless if a dispute arises later.
Indian Stamp Act 1899, Sections 33, 35, 38-40 · in force · source
Indian Stamp Act s.47A - undervaluation and reference to Collector
If the sub-registrar suspects that the price stated in a sale deed is lower than the true market value, the document is referred to the Collector, who can independently determine the market value and demand the shortfall in stamp duty. This is the main legal check against under-declaring the sale price to save on stamp duty.
Indian Stamp Act 1899, Section 47A (as inserted by state amendments) · in force · source
Registration Act 1908 s.17 - documents that must be registered
The law lists which property documents legally must be registered at the sub-registrar's office - mainly gift deeds and any document worth Rs 100 or more that creates, transfers or extinguishes rights in immovable property, plus leases longer than one year. Skipping registration on a document that needed it means the transaction has no legal effect on the property and cannot even be used as proof of the deal in most disputes.
Registration Act 1908, Section 17 · in force · source
Registration Act 1908 s.23 and s.25 - four-month window and late registration
A document must normally be taken to the sub-registrar for registration within four months of the date it was signed. If that deadline is missed for a genuine reason such as an accident or urgent necessity, the registrar can still accept it for up to another four months on payment of a fine - but beyond eight months total, the document generally cannot be registered at all without a court order.
Registration Act 1908, Sections 23, 25 · in force · source
Registration Act 1908 s.32A - photographs and fingerprints
Since a 2001 amendment, every person presenting a document for registration - buyer, seller and witnesses - must give a passport-size photograph and fingerprints at the sub-registrar's office. This was added to curb impersonation and fraudulent registrations using fake identities.
Registration Act 1908, Section 32A (inserted 2001) · in force · source
Registration Act 1908 s.49 and s.71 - effect of non-registration and refusal
A document that legally needed registration but was never registered has no effect on the property and generally cannot even be produced as evidence of the transaction in court - one narrow exception lets it be used to prove part performance of a contract or as evidence of an unrelated collateral fact. If a sub-registrar refuses to register a document, the person can appeal to the Registrar within 30 days and, failing that, file a civil suit within 30 days of the refusal order.
Registration Act 1908, Sections 49, 71-77 · in force · source
Transfer of Property Act s.6 - what property can be transferred
As a general rule, property of any kind can be transferred, but the law carves out specific things that cannot be sold, gifted or mortgaged away - like a mere chance of inheriting property in the future, a right to sue someone, or a public office. Knowing these exceptions matters because a document that purports to transfer one of these is simply void to that extent.
Transfer of Property Act 1882, Section 6 · in force · source
Transfer of Property Act s.41 - ostensible owner
If the real owner of a property allows someone else to appear as the owner - for example letting a family member's name go on records with their consent - and that apparent owner then sells the property to an honest buyer who checked the paperwork carefully, the sale can still be valid even though the seller was not the true owner. This protects genuine buyers who did reasonable due diligence, but only if the real owner's own conduct created the false impression.
Transfer of Property Act 1882, Section 41 · in force · source
Transfer of Property Act s.52 - doctrine of lis pendens
If a lawsuit is pending in court over who owns or has rights in a property, that property cannot be sold or transferred in a way that defeats whatever the court eventually decides - any buyer during the case is bound by the final judgment, litigation or not. This is exactly why a thorough title search must always check for pending court cases, not just the registered documents.
Transfer of Property Act 1882, Section 52 · in force · source
Transfer of Property Act s.53A - doctrine of part performance
If you signed a written contract to buy a property, took possession under it, and have paid or are ready to pay your side of the deal, the seller cannot simply evict you or go back on the deal just because the final registered sale deed was never executed. This protection only works as a shield to stay in possession and defend against the seller - it does not by itself make you the legal owner, which still requires a registered conveyance.
Transfer of Property Act 1882, Section 53A · in force · source
Transfer of Property Act s.54 - sale and agreement to sell
A 'sale' legally means transferring ownership of property for a price, and for any immovable property worth Rs 100 or more this can only be done through a registered sale deed - nothing less will do. An agreement to sell, by contrast, is just a promise to sell in future and does not, by itself, create any ownership interest or charge on the property, however detailed or notarised it may be.
Transfer of Property Act 1882, Section 54 · in force · source
Transfer of Property Act s.58 - types of mortgage
A mortgage is when you use your property as security for a loan by transferring a limited interest in it to the lender, and Indian law recognises six distinct types with different rights and risks. Most home loans use an equitable mortgage created simply by depositing the title deeds with the bank, which is why banks always keep the original property papers during the loan tenure.
Transfer of Property Act 1882, Section 58 · in force · source
Transfer of Property Act s.105-107 - lease, notice to quit, and registration
A lease transfers the right to use property for a period in exchange for rent or a premium, and the law sets default notice periods and registration rules unless the lease agreement says otherwise. Any lease longer than one year, or one that runs year to year, legally must be registered - an unregistered long-term lease is treated as only a month-to-month tenancy for most purposes.
Transfer of Property Act 1882, Sections 105, 106, 107 · in force · source
Transfer of Property Act s.122 - gift of immovable property
A gift of property is a voluntary transfer made without any payment in return, and it must be accepted by the person receiving it while the giver is still alive and capable of giving. For immovable property, a gift is only legally valid if it is made through a registered document signed by the donor and witnessed by at least two people - an oral gift or an unregistered gift deed has no legal effect on the property.
Transfer of Property Act 1882, Sections 122-123 · in force · source
Agreement to sell - essentials under the Indian Contract Act 1872
An agreement to sell property is an ordinary contract and needs the same basic ingredients as any other - free consent of both sides, a lawful object, and consideration - and does not by itself have to be registered or stamped in every state, though many states now require or encourage it. It legally binds both parties to complete the sale on the agreed terms but, per s.54 TPA, does not transfer ownership; only the final registered sale deed does that.
Indian Contract Act 1872, Sections 10, 73-74 · in force · source
Earnest money and forfeiture on buyer default
Earnest money is the token amount a buyer pays to show serious intent to complete a purchase, and if the buyer later backs out without a valid reason, the seller can usually keep it as compensation. But courts have consistently held that only a 'reasonable' amount - commonly discussed as somewhere around 10-20% of the price - can be forfeited; anything beyond that risks being struck down as an unenforceable penalty rather than genuine pre-estimated damages.
Indian Contract Act 1872, Section 74 · in force · source
Specific Relief Act 1963 (as amended 2018) - specific performance now the rule
Before 2018, a court had wide discretion whether to order a defaulting party to actually complete a property sale (specific performance) or just pay damages instead. The 2018 amendment flipped this: specific performance is now the default remedy that courts must generally grant, making it significantly easier for a genuine buyer or seller to force the other side to honour a property contract rather than just pay compensation.
Specific Relief (Amendment) Act 2018 · amended · source
Indian Easements Act 1882 - basics of right of way, light and prescriptive easements
An easement is a limited right one property owner has over a neighbour's land - most commonly a right of way, or a right to light and air - that comes attached to the land itself rather than to any particular owner. If you have openly and continuously used such a right (like a passage through a neighbour's plot) for 20 years without interruption, the law can recognise it as a permanent legal easement even without a formal deed.
Indian Easements Act 1882 · in force · source
Benami Transactions (Prohibition) Amendment Act 2016
A 'benami' deal is when property is bought in one person's name but someone else actually paid for it and enjoys the benefit, hiding the real owner's identity - this is illegal in India except in specific family situations. The 2016 amendment sharply strengthened the law with a dedicated enforcement machinery, allowing the government to confiscate benami property without paying any compensation and to prosecute those involved with up to 7 years in prison.
Benami Transactions (Prohibition) Amendment Act 2016, amending the 1988 Act · amended · source
Powers of Attorney Act 1882 and use of GPA in property deals
A power of attorney lets one person (the agent) act on behalf of another (the principal) - commonly used by NRIs or elderly owners who cannot be physically present for a sale, or for genuinely managing a property. It is a tool for agency, not a way to transfer ownership - the Supreme Court has made clear that so-called 'GPA sales,' where a General Power of Attorney is used as a substitute for an actual registered sale deed, do not legally transfer title (see the Suraj Lamp judgment record).
Powers of Attorney Act 1882 · in force · source
7/12 extract, jamabandi, khasra and khatauni - land record basics
Different states use different names for the same basic idea: an official revenue record that shows who owns or cultivates a piece of agricultural land and how it is used. Knowing the right term for your state - 7/12 in Maharashtra and Gujarat, jamabandi in Punjab and Haryana, khasra-khatauni in Uttar Pradesh - is essential for checking ownership before buying land or applying for a loan against it.
State Land Revenue Codes/Acts · in force · source
Patta-Chitta and RTC (Pahani) - Tamil Nadu and Karnataka land records
Tamil Nadu and Karnataka each maintain their own style of land ownership record. In Tamil Nadu, Patta is the legal ownership document and Chitta shows the land classification (the two are now issued together as a combined Patta-Chitta); in Karnataka, the RTC (Record of Rights, Tenancy and Crops), also called Pahani, plays a similar role and is issued through the Bhoomi land records system.
Tamil Nadu and Karnataka Land Revenue records · in force · source
Mutation (dakhil-kharij / intkal) - updating land revenue records after a sale or inheritance
Mutation is the process of updating the government's revenue records to show a property's new owner after a sale, gift or inheritance - it does not itself transfer legal title (a registered deed or the law of succession does that), but skipping it means the old owner's name keeps appearing in tax and revenue records, which can cause real problems later with loans, resale or property tax. In many states it is called dakhil-kharij or intkal, and it must be applied for at the local tehsil or revenue office after registration.
State Land Revenue Codes/Acts, mutation rules · in force · source
Maharashtra Land Revenue Code 1966
This is the master law behind Maharashtra's land administration - it governs how land is surveyed and assessed, how the 7/12 record of rights is maintained and mutated, how government (gairan/gavthan) land is managed, and how agricultural land can be converted for non-agricultural use. Most disputes about land classification, unauthorised construction on revenue land, or NA (non-agricultural) permission in Maharashtra trace back to this Code.
Maharashtra Land Revenue Code 1966 · in force · source
Punjab Land Revenue Act 1887 (applicable in Punjab and Haryana)
This colonial-era law, still in force in both Punjab and Haryana after their 1966 split, sets the framework for jamabandi records, mutation of holdings, partition of joint agricultural land, and the roles of village-level revenue officials like the patwari and lambardar. Nearly every rural land transaction in these two states - sale, inheritance, or partition - eventually runs through the machinery this Act created.
Punjab Land Revenue Act 1887 · in force · source
Uttar Pradesh Revenue Code 2006
This law consolidated and replaced UP's older, fragmented land revenue and land reform laws (including the earlier UP Zamindari Abolition and Land Reforms Act framework for records purposes) into a single code, though it only actually came into force a decade after being passed. It governs khasra and khatauni records, mutation (dakhil-kharij), consolidation of holdings, and land use conversion in the state.
Uttar Pradesh Revenue Code 2006 (in force from 2016) · in force · source
Karnataka Land Revenue Act 1964
This is Karnataka's core land administration law, covering survey and assessment of land, maintenance of the RTC (Record of Rights, Tenancy and Crops), and the conversion of agricultural land to non-agricultural use - the well-known 'DC conversion' every Bengaluru property buyer should check for before purchasing land that was originally agricultural.
Karnataka Land Revenue Act 1964 · in force · source
RFCTLARR Act 2013 - compensation multiplier and consent requirements
When the government compulsorily acquires private land for a public project, this law guarantees compensation well above plain market value - up to twice the market value in urban areas and up to four times in rural areas, plus a 100% solatium on top - and also entitles affected families (not just landowners) to rehabilitation and resettlement benefits. For land acquired on behalf of private companies or in public-private partnerships, the government must first get the consent of a large majority of the affected landowning families.
Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act 2013 · in force · source
RFCTLARR s.24 lapse of old acquisitions, s.96 tax exemption, and TDS under s.194LA
Old land acquisitions started under the 1894 law before 2014 can lapse and require a completely fresh acquisition under the newer, more generous 2013 Act if the authorities never paid compensation or took physical possession - though courts have clarified that simply depositing the money in the government treasury is enough to prevent a lapse, even if the landowner refused to collect it. Separately, compensation received under the 2013 Act's rehabilitation provisions is exempt from income tax entirely, though a payer must still deduct 10% TDS on other compulsory acquisition compensation under a different provision unless the exemption applies.
RFCTLARR Act 2013, Section 24 and Section 96; Income-tax Act 1961, Section 194LA · in force · source
Maharashtra Rent Control Act 1999 and Delhi Rent Control Act 1958
These older-generation rent laws still govern many long-standing tenancies in Mumbai and Delhi, generally tilting protection heavily toward sitting tenants and making eviction difficult except on specified grounds like the landlord's genuine personal need. In Delhi, the Rent Control Act mainly protects tenancies below a very low, decades-frozen rent threshold, which means most modern high-value rentals fall outside it entirely and are governed instead by ordinary contract law.
Maharashtra Rent Control Act 1999; Delhi Rent Control Act 1958 · in force · source
Tamil Nadu (2017) and Uttar Pradesh (2021) tenancy laws
Tamil Nadu and Uttar Pradesh each replaced their old, tenant-heavy rent control laws with newer legislation designed to be fairer to both sides - requiring every tenancy to be in a written, registered agreement, capping security deposits, and routing disputes to a dedicated Rent Authority instead of ordinary civil courts. Andhra Pradesh and Telangana continue to operate under their own older Buildings (Lease, Rent and Eviction Control) Act framework, which has not been replaced by a Model Tenancy Act-style law as of this compilation.
Tamil Nadu Regulation of Rights and Responsibilities of Landlords and Tenants Act 2017; UP Regulation of Urban Premises Tenancy Ordinance/Act 2021 · in force · source
Leave and licence agreement registration - mandatory in Maharashtra
Unlike most other states, Maharashtra legally requires every leave-and-licence (rental) agreement to be registered, no matter how short the duration - an 11-month agreement is not exempt just because it is under the general one-year registration threshold in the Registration Act. The law specifically places responsibility for registering on the landlord (licensor), and failure to register can attract a fine and even imprisonment for the landlord, plus creates unfavourable presumptions against them if a dispute arises.
Maharashtra Rent Control Act 1999, Section 55 · in force · source
Hindu Succession Act 1956 - intestate succession basics
This law decides who inherits a Hindu person's property (also covering Buddhists, Jains and Sikhs) when they die without a will. Class I heirs - son, daughter, widow, mother, and a defined list of others - all inherit simultaneously and equally, and once a woman comes to own property in her own right, it becomes her absolute property to deal with as she wishes, not a limited estate she must pass on in a fixed way.
Hindu Succession Act 1956 · in force · source
Hindu Succession (Amendment) Act 2005 - daughters as coparceners
Before this 2005 amendment, only sons automatically had a birthright share in ancestral Hindu joint family property; daughters did not. The amendment gave daughters the same coparcenary birthright as sons - an equal share by birth in the ancestral family property, with the same rights and the same liabilities - fundamentally changing inheritance in Hindu joint families across India.
Hindu Succession (Amendment) Act 2005, amending Section 6 · amended · source
Indian Succession Act 1925 - wills and where probate is mandatory
This law sets the rules for making a valid will and, for non-Muslims, governs testamentary succession generally. Crucially, in the three former Presidency towns - Mumbai, Kolkata and Chennai - a will covering immovable property there cannot practically be acted upon without first obtaining probate (a court's formal validation of the will), whereas elsewhere in India probate is optional and mainly used to remove doubt or prevent disputes.
Indian Succession Act 1925, Sections 57-70 (wills), 213, 57(a)-(c) (probate) · in force · source
Muslim personal law - inheritance basics
Muslims in India are governed by their own uncodified personal law for inheritance, not the Hindu Succession Act or the general provisions of the Indian Succession Act - shares are fixed by Islamic law (differing somewhat between Sunni/Hanafi and Shia schools) and apply automatically on death, with no concept of coparcenary or birthright in ancestral property. A Muslim can only will away up to one-third of their net estate freely; the rest must go to the legal heirs in their fixed Quranic shares, unless all heirs consent otherwise.
Muslim Personal Law (Shariat) Application Act 1937 · in force · source
Legal heir certificate vs succession certificate
These two documents are often confused but serve different purposes: a legal heir certificate, issued quickly by a local revenue officer, simply lists who the deceased's heirs are and is commonly used for mutation of immovable property, pension and employment benefits. A succession certificate, issued only by a civil court, is specifically meant to let heirs collect the deceased's movable assets like bank balances, shares and debts, and carries stronger legal weight because a court has scrutinised the claim.
State revenue rules; Indian Succession Act 1925, Part X (Sections 370-390) · in force · source
Nomination in a housing society is not ownership - and how society transfer works
Nominating someone for your housing society flat only tells the society who to deal with immediately after your death so day-to-day matters do not stall - it does not make that nominee the legal owner, and the property must still pass according to your will or the succession law that applies to you. Separately, when a flat is actually sold and transferred to a new owner, cooperative societies in Maharashtra can only charge a strictly capped transfer premium, not whatever amount the managing committee decides.
Maharashtra Co-operative Societies Act 1960 and equivalent state Acts; model bye-laws · in force · source
From CAPGAIN's law library (100 records in this area), checked 25 Sept 2026. Records still awaiting confirmation are not shown here.