Registry, sale deed, stamp duty and mutation: what each step means

Agreement to sell (banama)

A written agreement in which the seller promises to sell and the buyer promises to pay, usually with a token amount. It does not make you the owner. It is a promise, and it should say the price, the date by which the sale deed will be signed and what happens if either side backs out.

Sale deed

The document that actually transfers ownership. It names the buyer and seller, describes the property with its boundaries and area, states the price and is signed by both sides and two witnesses.

Stamp duty

A state tax on the transfer, paid on the value of the property by buying stamp paper or paying online. The rate depends on the state, and some states charge less when the buyer is a woman. Ask the sub-registrar's office or check the state's registration website for the current rate before you fix a budget.

Registration (registry)

The sale deed is registered at the sub-registrar's office, where both sides and the witnesses appear, give their fingerprints and photographs and pay a registration fee. A registered deed is the public proof of your ownership. A sale that is not registered is not safe.

Mutation (dakhil-kharij)

Registration changes the ownership on paper at the registrar's office, but the land or municipal records are kept separately. Mutation is the step that puts your name in those records, so that tax bills and future sales are in your name. Apply for it soon after the registry; it can take weeks.

Encumbrance certificate

A statement from the registrar listing registered dealings on a property, such as sales and mortgages, over a period. It shows whether the property is free of loans and earlier claims.

A few more words

• Power of attorney: authority given to someone to act for the owner. It is not ownership, and sales made only through it are risky.
• Possession letter: says the buyer has been handed the property; it does not replace the sale deed.
• TDS: for some purchases above a set value, the buyer deducts tax from the payment to the seller and deposits it; ask a chartered accountant about the current rule.