What documents are to be compulsorily registered?
Registration Act deals with the process of registration of documents, its verification, establishment of offices etc. There are two types of documents regarding which the Act mentions. Those are documents of which registration is compulsory and the others in which registration is optional. What are the documents in which registration is compulsory? The Act specifically deals with this question in Section 17. A note regarding this follows:
By virtue of Section 17(1) of the Act, every document executed on or after the passing of Indian Registration Act shall be registered if enlisted in this section. They are:-
1) Documents relating to gift of immovable property:-
Gift is a transfer of immovable property made voluntarily without consideration to a person and accepted by the transferee. Gifts are made by stamped instruments which needs to be registered as per this Section of Indian Registration Act.
2) Documents(non-testamentary) of transfer of either vested or contingent right, title or interest over immovable property, having the value of one hundred rupees and upwards to be registered. A lease deed may be registered. If such lease deed is registered, it has to be released by a registered instrument.
3) Documents(non-testamentary) which acknowledges the receipt or payment of any consideration by way of creation, declaration, assignment, limitation or extinction of any right, title or interest mentioned in point No:2 shall also be registered.
Please be noted that there are certain documents, even if they fall within the purview of Point Nos:2 and 3, may not be registered. The details of such documents are mentioned in Section 17(2). It includes among others, any composition deed, grant of immovable property by government, any sale certificate, endorsement on a mortgage-deed acknowledging payment of loan/mortgage money etc. Likewise, an agreement for sale need not be registered; but a sale deed has to be registered.
4) Lease of immovable property from any term exceeding one year has to be registered.
5) If a person transfers any decree or order which creates, declares, assigns, limits or extinguishes any right, title or interest having value of one hundred rupees and upwards in an immovable property, such a document by which the transfer is made is to be registered.
Registration is a formal declaration of happening of a transaction. If any transaction in which registration is made compulsory and such registration is not made to record the event, then such document may be considered invalid in law. Please share your views and comments. Thank you.