Steps to Register Property in Bihar: A Complete Guide

Property registration is a crucial legal process that formalizes the transfer of ownership from one person to another. In Bihar, property registration is governed by the Indian Registration Act, 1908, which mandates that all transactions involving immovable property be registered. This process ensures that the new owner’s rights are legally recognized and protects against future disputes. In this blog, we’ll walk you through the step-by-step process of registering property in Bihar, highlighting key considerations, required documents, and tips for a smooth experience.

Why Property Registration is Important

• Legal Ownership: Registration is the legal acknowledgment of property ownership, making it officially recognized.
• Protection Against Fraud: It safeguards the buyer from fraudulent claims and disputes.
• Right to Sell: Only registered property can be legally sold or transferred.
• Bank Loans: A registered property can be used as collateral for obtaining loans.
• Taxation: Proper registration ensures compliance with property tax obligations.

Steps to Register Property in Bihar

1. Verification of Property Title

Before initiating the registration process, it is essential to verify the title of the property. This ensures that the seller has clear ownership and the right to sell the property.

• Conduct a title search at the Sub-Registrar’s office to check for any existing encumbrances, liens, or disputes related to the property.
• Obtain the Encumbrance Certificate (EC) to verify that the property is free from any legal dues or claims.

2. Obtain the Sale Agreement

Once the title is clear, the next step is to draft a sale agreement between the buyer and the seller.

• Prepare the Sale Agreement: This document outlines the terms and conditions of the sale, including the sale price, payment schedule, and any other relevant clauses.
• Pay the Advance: The buyer usually pays a portion of the sale price as an advance, as per the terms of the sale agreement.
• Sign the Agreement: Both parties must sign the agreement, and it should be executed on non-judicial stamp paper.

3. Payment of Stamp Duty and Registration Fees

Stamp duty is a tax paid to the government for the legal recognition of the property transaction. In Bihar, the stamp duty rates are typically 6% for male buyers and 4% for female buyers. Registration fees are an additional 2% of the property value.

• Calculate the Stamp Duty: The stamp duty is calculated based on the property’s market value or the sale agreement value, whichever is higher.
• Pay the Stamp Duty: You can pay the stamp duty online through the Bihar Government’s e-Stamping portal or offline at the Sub-Registrar’s office.
• Pay the Registration Fees: This fee is also paid at the Sub-Registrar’s office or online.

4. Preparation of the Sale Deed

The sale deed is the final document that legally transfers the ownership of the property from the seller to the buyer.

• Draft the Sale Deed: It must include all details such as the property description, sale amount, terms and conditions, and signatures of both parties.
• Hire a Legal Expert: It’s advisable to have a legal expert or advocate draft and review the sale deed to ensure that all legal formalities are correctly followed.

5. Execution of the Sale Deed

After drafting the sale deed, it needs to be executed by both the buyer and the seller.

• Present the Sale Deed: Both parties, along with two witnesses, must be present at the Sub-Registrar’s office on the scheduled date.
• Sign the Sale Deed: The sale deed is signed by both parties in the presence of the Sub-Registrar.
• Biometric Verification: The buyer, seller, and witnesses undergo biometric verification (fingerprints and photographs) to confirm their identities.

6. Property Registration

After the execution, the sale deed is registered, making the transfer of ownership legally binding.

• Submit the Documents: Submit the signed sale deed, along with the required documents (mentioned below), to the Sub-Registrar for registration.
• Verification by Sub-Registrar: The Sub-Registrar will verify the documents, and if everything is in order, the sale deed will be registered.
• Obtain the Registered Sale Deed: After registration, a copy of the registered sale deed will be provided to the buyer, officially completing the registration process.

7. Mutation of Property

After registration, the final step is to mutate the property in the local municipal records to reflect the change in ownership.

• Apply for Mutation: Submit an application to the local municipal office or Gram Panchayat along with a copy of the registered sale deed.
• Update Land Records: Once the mutation process is complete, the land records will be updated with the new owner’s name, ensuring that all future property tax receipts are issued in the buyer’s name.

Documents Required for Property Registration in Bihar

• Sale Agreement
• Original and duplicate copies of the Sale Deed
• Encumbrance Certificate
• Identity proofs of both buyer and seller (Aadhar card, PAN card, etc.)
• Photographs of the buyer, seller, and witnesses
• No Objection Certificate (NOC), if applicable
• Property tax receipts
• Proof of payment of stamp duty and registration fees