Key Differences Between Property and Apartment Registration

When you buy a house or an apartment, the first step is registration. Registering your claim gives you ownership of the property or apartment you want to buy. It ensures you have full rights to it. Many confuse ‘registration of property’ with ‘registration of an apartment.’ This blog will clear up the confusion about property vs. apartment registration. It will explain both in simple terms.

What is property registration?

Property registration is the legal process of recording a property’s ownership with a state. This enables the buyer, through the courts, to prove the transfer of ownership over it. In India, the sale deed registering properties is under the Indian Registration Act of 1908. For property purchases, the buyer must register the sale deed at the sub-registrar’s office.

What is apartment registration?

The registration process is almost like that of property registration. Apartment registration means registering an individual apartment in a large residential complex. When you buy an apartment in a building, you register for a specific apartment. This includes its rights and access to common areas, like corridors and elevators.

Apartment registration is like property registration. However, it may need extra steps due to shared ownership of common spaces. Most cities now have more transparent apartment rules. The Real Estate (Regulation and Development) Act, 2016 (RERA) governs them.

Key Differences Between Property and Apartment Registration

We know what property and apartment registration are. Now, let’s explore their differences.

1. Type of Ownership

• Property Registration : When you buy any property, like a plot or a house, you get all the land and buildings on it. The sale includes them.

That’s to say one owns both pieces of land with the buildings on them. Sometimes, the sold property has no buildings, only an empty lot. But owning the land gives you the right to    build on it.

• Apartment Registration : For an apartment, you buy a part of the building. You own space only within your apartment’s boundaries. You do not own the ground beneath it or the whole building.

All residents of the building own it. So, you must share the lobby, parking, and elevators.

2. Registration Process

• Property Registration :  Property registration includes, among other things, submitting documents. These include the sale deed, land records, and proof of ownership.

The registering office will check these documents. If all details are correct, it will register the sale and issue a title deed.

• Apartment Registration : Apartment registration requires more documents than in the case of property registration. First of all, there are the sale deed and proof of ownership.

You must also submit the building plan and the society’s rules. The local authorities must approve the plan. The registrar’s office verifies all these documents. Then, it issues a title deed for the apartment.

3. Common Areas and Maintenance

• Property Registration : With registration, you don’t have to worry about common areas. It is your land and, hence, your property. You have complete responsibility for maintaining or developing the property.

• Apartment Registration : When registering the apartment, residents share costs with other owners. This covers hallways, elevators, and parking spaces, among other things. Residents must pay a maintenance fee to keep the common areas clean and functional.

4. Land Ownership vs. Shared Ownership

• Property Registration : You will own the property and the land, with no one to share it with unless you wish to sell or lease part of it.

• Apartment Registration : In the apartment registration, several others share ownership. The builder or a housing society owns the land under the apartment building. Everyone owns the area of his or her apartment as per his or her apartment’s area on that land. Thus, sharing among people is the backbone of an apartment community’s proper operation.

5. Taxation

• Property Registration : After registering the property, you will have to pay property tax based on the land or structure you own. There are many property registration benefits in this process, as property tax is calculated annually. The amounts depend on factors such as the location or size of the property.

• Apartment Registration : For apartments, property taxes apply, but they use a different scale. Besides the taxes on the apartment, you would pay a share of the taxes on the building’s common areas. These taxes usually get divided among all the people living in that building.

6. Documentation and Legal Formalities

• Property Registration : Property registration requires documents about land and structures. These include a sale deed, proof of ownership, and a land survey. The legal formalities are simple. You will deal with a single unit of property.

• Apartment Registration : Registration for an apartment requires more documents. They must prove that the property complies with local laws. These include approved building plans, occupancy certificates, and society registration agreements. Before registering the apartment, make sure all these documents are in order.

7. Mortgages and Loans

• Property Registration : It is also easy to mortgage a registered property. The owner has clear ownership; he owns both the land and the structure. Banks likely have fewer reasons to reject mortgage requests from property owners.

• Apartment Registration : Buying an apartment with a loan might be a bit harder than buying a standalone home. They need to confirm that it is in a building that has proper registration and clear property rights.

8. Sale or Transfer of Ownership

• Property Registration:Transferring ownership of property is straightforward. You need to sell all the property. Then, at the registration office, you must sign a sale deed and supporting documents. This will transfer ownership to the new buyer.

• Apartment Registration : The sale deed transfers ownership of an apartment. But it might need extra steps. For example, you may need to inform the housing society of the change in ownership. You may need other apartment or society owners’ consent to complete your transfer.

Conclusion

It is important to know the difference between apartment registration and property. This is especially true for those looking to buy or sell real estate. Registering a house, land, or apartment can save time, trouble, and money. It’s important to know what to expect. Apartment and property registration prove lawful ownership. They protect against future disputes.

For best results, seek legal advice if unsure about the registration process. This will ensure that all procedures are correct and in place. For a long time, registration has assured investors. It secures their investment in a house or apartment.

Frequently Asked Questions