• Registration of foreclosure property with sales certificate

HI,

I have bought a property in karnataka through sarfaesi act from a bank. The bank has provided the sales certificate. I was told that given that this is a foreclosure property and since I have a sales certificate, I dont need to register the property. Also, the sub-registrar should enter the transaction in Book1 as per the registration act (and supreme court ruling).

However the sub registrar is saying that I have to pay stamp duty for the transaction to be entered in Book1. 

Please advise on the same. Also, does entering the transaction in Book1 ensure my name is reflected everytime i take an EC
Asked 2 years ago in Property Law
Religion: Christian

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14 Answers

In fact within three months from date of issuance of sale certificate a proper sale deed too is required to be executed and be registered to avoid future complications. Authorised Bank officials shall execute sale. 

Siddharth Srivastava
Advocate, Delhi
1551 Answers

Auction purchasers of immovable property need not pay registration fees or pay stamp duty when filing a copy of sale certificate under Section 89(4) of the Registration act 

 

2)Tripower Enterprises (Private) Limited Vs Sub Registrar (Madras High Court) Appeal Number : W.P. No. 34249 of 2018

when a copy of the sale certificate presented before the first respondent not for the purpose of registration but only for purpose of filing it by the first respondent in his office as contemplated under Section 89(4) of the Registration Act. Therefore, the first respondent could not refuse to file a copy of the sale certificate by demanding payment of stamp duty and registration fees to file the same in Book No.1, as contemplated under Section 89(4) of the Registration Act, 1908. The first respondent was directed to file the sale certificate presented by the second respondent under Section 89(4) of the Registration Act, 1908 within a period of two weeks from the date of receipt of a copy of this order 


Ajay Sethi
Advocate, Mumbai
99779 Answers
8145 Consultations

Dear client,  

As per the Registration Act, any sale or transfer of immovable property must be registered with the sub-registrar's office, and the appropriate stamp duty must be paid for the same. This applies even if the property is being sold through the SARFAESI Act.

Therefore, it is advisable to register the property and pay the appropriate stamp duty as per the market value of the property. The sub-registrar's office should then enter the transaction in Book1 as per the registration act, which will ensure that the transfer of ownership is legally recognized and recorded.

Entering the transaction in Book1 will also ensure that your name is reflected on the Encumbrance Certificate (EC) whenever you request for it. An EC is a document that shows all the transactions or encumbrances on a particular property, and it is issued by the sub-registrar's office. By registering the property and entering the transaction in Book1, you can ensure that your ownership of the property is reflected in the EC. This can be important for future legal or financial transactions related to the property.

It is recommended that you consult with a lawyer to understand the stamp duty and registration requirements for your specific case, and to ensure that all legal procedures are followed correctly.

Anik Miu
Advocate, Bangalore
11014 Answers
125 Consultations

It is not nevessary to register the sale certificate and pay Stanmore duty. You can ask the registration office to file the said sale certificate in its office under section 89(4) of registration Act as it has same effect and will be treated as registered document. No need to pay stamp duty for such filing under said section 

Prashant Nayak
Advocate, Mumbai
34515 Answers
249 Consultations

Whether the bank has provided the sale certificate or not, you are required to have the property registered to your name by paying the requisite or applicable stamp duty and the registration charges, unless you cannot claim legal title to the property. 

The sale certificate even if it is registered in the Book I of the sub registrar office as per the registration act, it can be done only after you paying the applicable stamp duty as per the guidelines value of the proeprty and the registration charges.

 Besides it will only show an encumbrance in the property on your name and it may not be a proper document to prove your title when you intend to sell the property in future.

For that you are required to have a registered sale deed executed in your favor, therefore you can get the sale deed executed by bank in your favor 

T Kalaiselvan
Advocate, Vellore
89978 Answers
2492 Consultations

It has to be register within 4 months of purchase. Sale deed is must. Stamp duty payable.


Once register, you will reflect as owner of property in records.

Yogendra Singh Rajawat
Advocate, Jaipur
23081 Answers
31 Consultations

Registration is compulsory. Registration charges need to be borne by the auction purchaser. Otherwise the buyer's name will not be reflected in the EC.

Swaminathan Neelakantan
Advocate, Coimbatore
3070 Answers
20 Consultations

- Section 17(2)(xii) of the Registration Act, 1908 provides that a certificate of sale granted to any purchaser of any property sold by a public auction by a civil or revenue officer does not fall under the category of non testamentary documents which require registration .

- Further, the Supreme Court in B. Arvind Kumar v. Government of India, referred supra, the sale certificate issued in favour of the appellant does not require any registration in view of Section 17(2)(xii) of the Registration Act as the same has been granted pursuant to the sale held in public auction by the authorised officer under SARFAESI Act.

- Hence, its registration is not mandatory , and the sub-registrar cannot force to pay the stamp duty over the same for entering in Book 1. 

Mohammed Shahzad
Advocate, Delhi
15814 Answers
242 Consultations

File writ petition in HC against sub registrar refusal to enter transaction in book 1 without payment of stamp duty

 

2) you don’t have to pay additional stamp duty at time of sale of property 

Ajay Sethi
Advocate, Mumbai
99779 Answers
8145 Consultations

As already advised, mere sale certificate is not sufficient and it may cause hurdle in future sale or transfer. In future sale, the same process shall be required to be followed and then prevailing stamp duty with penalty shall be payable. 

Siddharth Srivastava
Advocate, Delhi
1551 Answers

He needs to do it as per the provision of law. If he doesn’t do ask him to pass a order and appeal the same to the appellate authority of registration 

Prashant Nayak
Advocate, Mumbai
34515 Answers
249 Consultations

1. The sub registrar is right in refusing to register the sale certificate in book-I, because to register the document in Book-I, it is mandatory that the stamp duty as applicable has to be paid, do not be under misguidance.  Therefore instead of getting the sale certificate registered, you can ask the banker to execute the sale deed itself and register it so that the stamp duty can be paid once for all.

2.   You will not be able to sell the property by executing a registered sale deed in favor of the  prospective buyer if you do not have a registered sale deed on your name, because it is the title document by which you can claim title to the property.

The sale certificate is a mere certificate for selling the property to you and not a sale deed.

The banker will tell that the sale deed is not required whereas it is not the procedure.

The sale certificate issued by the banker is just an acknowledgment for receiving the money after having received money towards sale consideration, whereas this will not convey the title from the seller(banker) to you. 

Hence better do not approach any short cut method to remain silent about the stamp duty and the registration of the sale deed etc on any misguidance.

You say that the sub registrar is not accepting the register the sale certificate without paying the stamp duty, therefore instead of paying double stamp duty, i.e., one for sale certificate and another for sale deed, you better get the sale deed executed and pay the tamp duty for the sale deed itself.

 

T Kalaiselvan
Advocate, Vellore
89978 Answers
2492 Consultations

Appeal to DG stamp.

Double stamp duty with penalty.

Yogendra Singh Rajawat
Advocate, Jaipur
23081 Answers
31 Consultations

Dear client,  

If the sub-registrar is refusing to file the copy of sale certificate in Book no 1 without payment of stamp duty, you can try to explain to them that as per the law, the payment of stamp duty is not required for filing a copy of the sale certificate in Book no 1. You can also show them the relevant provisions of the law and any supporting documents that you have, such as legal opinions or judgments, to support your position. If the sub-registrar still insists on payment of stamp duty, you may need to seek legal recourse to resolve the issue.

If you want to sell the property in the future, the buyer will need to pay for the stamp paper for the sale deed as per the usual course. However, it is always advisable to consult with a lawyer to ensure that all legal requirements are met, and that the sale deed is drafted correctly to avoid any future disputes or legal issues.

Anik Miu
Advocate, Bangalore
11014 Answers
125 Consultations

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