When it comes to registration of title deeds, power of attorney or registering assets, there are often doubts galore. Here, Onmanorama lists out a few things you need know while registering assets in orders to avoid legal hassles.
As per the laws set by the central registration body, the formal registration of official documents prepared for matters related to transfer of property is done before government appointed registrars.
Once it is given a go ahead by the registrars, the prescribed fees and stamp charges are paid and these assets are added to the officially maintained registers.
The purpose of registration is to provide a conclusive proof of genuineness of the document, afford publicity to transaction, prevent fraud. It’s also a means to ascertain whether a property has already been transacted.
Only those drafted and prepared by a person of sound mind will be accepted for registration and at least two witnesses should verify a deed. Deeds of the asset, land or property that is to be transferred will include information on those holding various shares in the property.
A clear picture of this in the initial stage itself will be useful to avoid ownership problems in the future. In circumstances where a property or asset has already been registered in someone’s name, that person has the right to get the changes done until the time of his death.
When such changes are made, there are provisions of including newer clauses. The latest and newly registered deed will be considered the final and accepted version for any legal considerations.
The name of the person authenticated and given the right to make such changes can also be mentioned in the will. This authorized person can complete all the share registration formalities. It is acceptable to mention the assets that do not require to be separately registered in the deed during registration.
Mortgage of property
When a land or property is handed over for lease purposes for a period of 12 months or more, it is necessary to register the agreement. Registration is also mandatory while mortgaging a property or asset for taking a loan.
In the case of co-operative banks, once the loan amount is fully paid off, the registration of assets mortgaged should be canceled. An encumbrance certificate, which is evidence that the property in question is free from any monetary and legal liabilities, should be duly obtained as well.In the case of private banks, when assets are declared as security via equitable mortgage for loans, a registration is not required.
Power of attorney
In the unavoidable circumstances that registration cannot be done directly by the person, a third person can be authorized to perform the same. This is what is meant by assigning a power of attorney.
The power of attorney designated for financial transactions or bank dealings need not be registered. But this same power of attorney cannot be used for transfer of property, or registering of assets.
A separate power of attorney ought to be registered for this sole purpose and only property transactions handled in this manner will be considered legal and acceptable.