• Pagdi property late registration issue

I have purchased a pagdi property on 18 Nov 2016, now the problem is that registration is still not done and now the seller is not agreeing to do the registration as she is saying that doing it now in 2018 may incurr her IT penalty as instructed by her CA , and she says that she is ready to do the registration only on condition that the date of purchase (18 Nov 2016) should be mentioned in the agreement for which My lawyer also told her that we will give her indemnity in which we will mention so and so was the reason behind the delay in registration, also mentioning the date of purchase (18 Nov 2016) in the indemnity to make her safe.

Now my lawyer has told me that we cannot put the date of purchase (18 Nov 2016) in the registartion agreement as it would attract penalty.

Can you please help me out with this and also let me know what would be the penalty amount if I mentioned the date of purchase (18 Nov 2016) in the registration agreement and also what all documents and formalities that needs to done for the registartion.

Location of property is Mumbai.
Asked 6 years ago in Property Law
Religion: Hindu

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11 Answers

registration has to be done within maximum period of 8 months from date of execution of tenancy agreement

2) it cannot be done after 18 months

3)if tenancy agreement of November 2016 is not registered deed of confirmation can be executed by landlord

Ajay Sethi
Advocate, Mumbai
94723 Answers
7535 Consultations

5.0 on 5.0

1. There is no penalty if the date of purchase is mentioned on nay date prior to the date of registration.

2 Even after completion of purchase parties may for any reason agree to register the sale deed on later date and once it is done the date of agreement or date of making full payments remains always of prior date.

3 While ding so there is no question of payment of any penalty. So go ahead with the registration.

Devajyoti Barman
Advocate, Kolkata
22824 Answers
488 Consultations

5.0 on 5.0

You cannot register tenancy agreement after period of 8 months

Registration has to be done within 4 months of execution

With penalty maximum 8 months

Ajay Sethi
Advocate, Mumbai
94723 Answers
7535 Consultations

5.0 on 5.0

"Section 23 of the Registration Act, 1908 says that any document other than a will shall be presented for registration to the proper officer within four months from the date of its execution."

Moumita Mitra
Advocate, Kolkata
366 Answers
1 Consultation

4.0 on 5.0

Your question: However if I want I want to do the registration, how much is the penalty will incur

Answer: The registration fee for property documents is 1% of the value of the property, subject to a maximum of Rs 30,000 in the state of Maharashtra. In case the time limit has expired, you can make an application to the sub-registrar for condonation of the delay stating your reasons for delay in registering the property. This application should have been made within the next four months and now it is more than 2 years. The Registrar may agree to register on the precondition of payment of a fine that may be up to TEN TIMES the original registration fee.

Your question: also what all documents and formalities that needs to done for the registartion.

Answer: You will need to engage a lawyer to make the deed, draft the same, register and help you out with all the necessary formalities. You may also need a Deed of Confirmation since the deed is going to registered backdated. But this only creates complications for you, the landlord will obviously not face much problems.

It is advisable that your landlord should register the deed as of today's date. This is a much better option. It will save you time, money and energy.

Gowaal Padavi
Advocate, Mumbai
1920 Answers
5 Consultations

5.0 on 5.0

1, Firstly registering a tenancy agreement is not the liability of the tenant but of the landlord

2. Even if you do not have a registered tenancy agreement, the rent receipt standing in your name and the possession of the tenanted premises, would suffice

3. so no need of a registered tenancy agreement in your name

5. once the landlord recognises you as his lawful tenant, then even if there is no registered document, it does not matter. its the landlord responsibility to execute and register tenancy agreement with tenant and NOT of the tenant

6. the seller tenant is having fear since she must have received consideration from you in the FY 2015-16 and already reported that receipt to the income tax

7. but the position for her wont change since the registration date relates back to the agreement execution date i.e. even if the agreement is registered later, it will relate back to the actual agreement date

8. after a document is signed, it has to be registered within a maximum period of 4 months plus additional 4 months

9. in your case that period is crossed.

10. the penalty will therefore be 2% of the stamp duty counted from the date of signing i.e Nov 2016 subject to maximum of 4 times of duty payable

11. so i suggest that instead of paying such high penalty alongwith the unpaid stamp duty, you stay put with your rent receipt and possession. thats a good title as well since registering agreement is not your liability, unless if certain utility providing companies like BEST etc insist for a registered document. but that can be taken care of as well (get the hint)

Yusuf Rampurawala
Advocate, Mumbai
7514 Answers
79 Consultations

5.0 on 5.0

The pagdi property cannot be bought by a registered sale deed then where is the question of registration.

If the owner is selling the pagdi property then the date of execution may be an earlier date to that of the date registration of the sale deed, there is no penalty involved in it if the consideration amount has been mentioned to have been transferred on any date within that.

T Kalaiselvan
Advocate, Vellore
84925 Answers
2196 Consultations

5.0 on 5.0

However if I want I want to do the registration, how much is the penalty will incur

Why should there be a penalty for a property that was purchased with sale agreement on a previous date and the sale deed registered at a subsequent date, there may not be any penalty for this

T Kalaiselvan
Advocate, Vellore
84925 Answers
2196 Consultations

5.0 on 5.0

However if I want I want to do the registration, how much is the penalty will incur.

And the reason to do the registration is because the landlord has told to do so.

The local laws apply becasue you are still not clear in your question that what do you want to purchase, whether the pagdi property as a owner or as a tenant?

In fact if the consideration amount was passed on 18 Nov 2016, then that can be treated as sale agreement and the present sale deed there can be a mention about passing of full consideration amount on that date for the registration being done now.

The time limit for registering a document which was already executed is just four months and in some exceptional cases it can be extended up to 8 months. Beyond that, the same cannot be registered even with any penalty.

T Kalaiselvan
Advocate, Vellore
84925 Answers
2196 Consultations

5.0 on 5.0

Hi,

The penalty amount can be found from the local authorities/office. It is better to go as per the advice rendered by your advocate.

Ganesh Singh
Advocate, New Delhi
6757 Answers
16 Consultations

4.5 on 5.0

The penalty will be huge as it will be back dated. The exact amount can be ascertained through convened dept. Documents required will be the sale deed or deed of assignment. Both the parties documents of photo ID and address proof. Applicable Registration fee and stamp duty

Prashant Nayak
Advocate, Mumbai
31951 Answers
179 Consultations

4.1 on 5.0

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