Registration Act 1908 mandates registration of every single property bought in India. Non registration of documents, required to be compulsory registered, attracts penal provision under the Registration Act 1908.
The documents are registered for the purpose of conservation of evidence, assurance of title, publicity of documents and prevention of fraud. Also, registration helps an intending purchaser to know if the title deeds of a particular property have been deposited with any person or a financial institution for the purpose of obtaining loan / advance against the security of that property.
Section 17 of the Registration Act 1908 lays down different categories of documents for which registration is compulsory. The documents relating to the following transactions of immovable properties are required to be compulsorily registered:
Gift deed for immovable property
Lease/ rent agreement of immovable property for any term exceeding one year
Instruments which create or extinguish any right or title to or in an immovable property of a value of more than one hundred rupees
No, possession of the property cannot be given without registration. The conveyance of the flat/ unit/ property is complete once the title document is executed in favour of the buyer before the Sub Registrar after paying applicable stamp duty and registration charges.
At Ashiana Housing we, as a policy, do not hand over the possession without registration of sale deed/sub lease deed.