An important aspect of execution of documents lies in their registration wherever applicable. Commonly, it is assumed to be a direct corollary/ consequence of stamping of documents; however it can broadly be treated as an extension and not a direct consequence since all documents do not require registration but documents that are to be registered need to be stamped.
Land is a critical component in any infrastructure project and hence various important legal issues like land acquisition, mortgages, other security documents and other related matters come into question. As most documents pertaining to immovable property need to be registered in accordance with the Registration Act, 1908 (Act) which came into force on 1 January 1909, an understanding of this statue too becomes necessary specially for successful implementation of immovable property transactions and infrastructure projects.
The object and the purpose of this Act is to provide for, amongst other things, a method of public registration of the documents. A document once registered becomes a public document since it comes within public domain. The process of registration provides information to people regarding legal rights and obligations arising or affecting a property and perpetuating documents. This (process) thus assists in checking fraud and misrepresentation.
The Act enumerates the time, place and manner of registration as also the charges payable to the State for the process. Thus, it is another agency through which revenues are generated for the State. Normally, if there is nothing in the deed to indicate on what date it has to come into operation, then it becomes effective from the date of its execution as distinguished from the date of its registration. In other words, if a document is subsequently registered, the document takes effect retrospectively from the date of its execution. Nonetheless, this broad ratio needs to be carefully considered and applied whilst carrying out a due diligence or impact of a document. Preservation of documents is an integral part of the registration system and in fact the system doubles up as an important tool for the preservation of the registered documents.
The State Government is to provide for a fire proof box for the office of every registrar and also make suitable provisions in each district for the safe custody of records connected with registrations in any district. Post an amendment in 2001, the prescribed books may also be kept in computer diskettes, floppies or any other electric form with the sanction of the State Government provided the prescribed safeguards are met.
Akin to the stamp acts, different States have different rates of charges for registration. Similarly, the Government remits in full or part charges payable on registration to promote certain types of industries/transactions, or to support certain sections of societies etc.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
