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Procedure
Obtain a tax clearance certificate from local tax authorities (Municipal) The parties or their representative verify with local and municipal tax agencies that all taxes and charges payable have been paid up to date.

Time to Cost Complete

3 days No cost

2*

Check with the Registrar of Companies about any existing charges against the property(State) The buyer must conduct a search in the local court registry for any litigation, insolvency proceedings against an Individual, winding-up proceedings against a company, or any charges on the property with the Registrar of Companies. The court services are computerized. However, the server regularly goes down and several charges have not been uploaded yet. The website remains a work in progress.

2 days

INR 3,100 (INR 50 for public search of document + INR 50 for two certified copies + INR 3,000 for lawyer / accountant fee) INR 7,500 (including lawyer fees)

Check for encumbrances at the office of Subregistrar of Assurance (State) The buyer should conduct a search of the property in the Subregistrars Office, noting the location details of the property and the time period to be checked. While investigating the title, it should be verified that: a. The legal document is in the name of the owner, issued by the Revenue Record Department under the seal of the Tahsildar; b. On the date of purchase the title of the owner for the preceding 30 years (preferably) shows no mortgage or other encumbrance as still existing on the date of the purchase; c. The property is transferable and heritable; d. The transferor is competent and/or authorized to transfer the property; e. The transferee is qualified to be a transferee; f. The object of consideration for the transfer is lawful; g. The transfer has been made and completed in the manner prescribed by law; h. The property being sold is free of restrictions for sale under the Urban Land (Ceiling and Regulation) Act (1976) and a clearance certificate for the property has been issued by the ULC (Urban Land Ceiling) Authorities. All land records have been computerized from 1987 onward. Prior to 1987, records must be checked manually. Officials of the Subregistrar conduct the searches and issue the Encumbrance Certificate upon receiving an application from the buyer/lawyer. Although a lawyer is engaged to file the application and follow up with the Subregistrar, official fees for an Encumbrance Certificate are INR 100 per year of search. The Encumbrance Certificate can also be obtained online, based on the following fee schedule: a. Application fees: INR 1; b. Search for first year: INR 15; c. Search for subsequent years (per year): INR 5; d. Computer search: INR 100; e. Courier charge: INR 25.

3 days

Obtain stamp paper after payment of stamp duty (State) In Chennai, one can obtain stamp paper from stamp vendors. Stamp duty was reduced from 8% to 6% in 2003. Obtaining stamp paper from the Treasury, dependent on availability, may take longer than through stamp vendors.

7 days

INR 167,102 (6% of the property value for stamp duty + 2% of the property value for surcharge / transfer fee)

5*

The final sale deed is prepared by the buyer or his lawyer (Private) Though not mandatory, it is common practice for a lawyer to draft the final sale deed.

3 days

INR 7,500 (lawyer fees)

Execute and register the final sale deed at the Subregistrars Office (State) The deed for registration is presented to the registration officer at the Subregistrars Office within whose jurisdiction the property is located. The officer checks the documents and annexes, and sets a date for both

17 days

INR 21,048 (1% of the property value + INR 100 for computer charges + INR

* Takes place simultaneously with another procedure. Listed above is a detailed summary of the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute.

The information appearing on this page was collected as part of the Doing Business subnational project, which measures and compares regulations relevant to the life cycle of a small to medium-sized domestic business in cities and regions.