A property deal? Here are the documents you may have to compulsorily register

The Registration Bill 2025, a draft of which was released on Tuesday (May 27), will be a step towards the creation of a modern, online, paperless, and citizen-centric registration system, the government said in an official release.

The draft Bill is open for suggestions until June 25. After the pre-legislative consultation process, the Bill will go to the Cabinet for approval, and will be introduced in Parliament for discussion and passage.

The proposed Bill

The draft Registration Bill prepared by the Department of Land Resources under the Ministry of Rural Development is 43 pages long, with 17 chapters and 86 Sections and a Schedule. The 1908 law is somewhat longer, with 93 Sections.

Among the key features of the draft Bill:

* ONLINE REGISTRATION: The draft contains enabling provisions to support online registration, including electronic presentation and admission of documents, issuance of electronic registration certificates, and digital maintenance of records. The existing law does not have provisions for electronically presenting documents for registration of an immovable property.

* AADHAAR-BASED AUTHENTICATION: Section 29(3) of the draft Bill says: “Every person presenting any document for registration under section 28 may undergo consent-based Aadhaar authentication, or offline verification or consent-based verification through officially valid documents or equivalent e-documents…in such offices of registering officers as may be notified…”

The Bill clarifies that no person will be refused registration for not having Aadhaar.

* WIDER SCOPE OF COMPULSORY REGISTRATION: The draft Bill expands the list of documents that require compulsory registration.

Under Section 12(1) of the draft, it is compulsory to register the following documents, if the property to which they relate is situated in a district where the Act is in force, and if they have been executed on or after the date on which this provision comes into force:

(a) instruments of gift of immovable property;

(b) other non-testamentary instruments which purport or operate to create, declare, assign, limit, or extinguish, whether in present or in future, any right, title, or interest, whether vested or contingent, to or in immovable property, for some consideration;

(c) non-testamentary instruments which acknowledge the receipt or payment of any consideration on account of the creation, declaration, assignment, limitation or extinction of any such right, title, or interest;

d) leases of immovable property from year to year, or for any term exceeding one year or reserving a yearly rent;

(e) non-testamentary instruments transferring or assigning any decree, court order, or award, when it purports or operates to create, declare, assign, limit, or extinguish a present or future right, title, or interest, whether vested or contingent, to or in immovable property;

(f) any document which purports or operates to effect any contract for sale of immovable property, including an agreement for sale, developer’s agreement, or promoter’s agreement, by whatever name called, for development of any property or construction of structure;

(g) power of attorney authorising transfer of immovable property with or without consideration;

(h) document setting out terms and conditions for a mortgage by deposit of title deed, barring specific exceptions;

(i) sale certificate issued by any competent officer or authority under any Central Act or State Act for the time being in force;

(j) instruments in respect of amalgamation, reconstruction, merger, and demerger of companies and transfer of immovable property at the time of formation of companies pursuant to any order passed under the Companies Act, 2013;

(k) instruments which purport or operate to create, declare, assign, limit, extinguish any right, title, or interest, whether vested or contingent, in immovable property pursuant to any decree or order or any award made by a court.

Why the change in law

According to the government, while the existing law has served as a “cornerstone” of the document registration system for more than 100 years, “over time, the role of registered documents has grown significantly in both public and private transactions”, and it is “essential that the process of registration is robust, reliable, and capable of adapting to evolving societal and technological developments”.

The official release points out that “in recent years, the growing use of technologies, evolving socio-economic practices, and increasing reliance on registered documents for due diligence, service delivery, and legal adjudication have underscored the need to create a forward-looking registration framework”.

In fact, several states and Union Territories have already introduced online submission of documents and digital verification of identity under the 1908 Act, says the release. Also, it is important to “delineate the roles and responsibilities of registering officers, enabling them to uphold the integrity and reliability of the registration process in a manner consistent with applicable law”.

There is, thus, “a need to provide a harmonized and enabling legislative framework to support secure, efficient, and citizen-centric registration practices across the country”, says the release.