Property Registration Cancellation

property registration is a crucial step in the process of acquiring legal ownership of a property. Once registered, the property owner enjoys various rights and protections under the law.

However, there may be situations where the registration of a property needs to be canceled. This could be due to various reasons such as fraud, error in registration, or violation of  property aws and regulations. Canceling the registration of a property is a legal process that involves various formalities and procedures.

What is Property Registration Cancellation?

Under Indian law, the registration of an assignment or title deed (sale, gift, exchange, assignment) may be terminated by filing an invalid act. Any claims the buyer of the property may have against him/her are terminated by the statutory act of termination.

Grounds for Cancellation of a Property Registration 

Both the buyer and the seller can cancel the purchase contract if there are valid reasons. Here are some of the main reasons a bill of sale can be voided.

Fraud

The registration of a property can be canceled if the property registration has been obtained through fraudulent means, such as through the submission of false documents or misrepresentation of facts. Either party, seller, or buyer can cancel the property registration under this ground.

Mistake

Either party can cancel the registration, if there has been an error or mistake in the registration process, such as incorrect information being recorded.

Non-compliance with legal requirements

If the property registration has been obtained in violation of any legal requirements or regulations, such as non-payment of stamp duty or registration fees, the registration may be canceled.

Illegal occupation or transfer of property

Here, a buyer can cancel the registration of a property, if such property has been illegally occupied or transferred without the consent of the legal owner. Here ara some ways to transfer the property to someone.

Court order

If a court of law issues an order canceling the property registration, it will be canceled accordingly. 

Process of Registering a Cancellation Deed

The process of registering a cancellation deed in India involves the following steps:

Drafting the Cancellation Deed

The first step in the process is to draft a cancellation deed. This deed should clearly state the reason for cancellation and provide all the relevant details of the property being canceled, such as the property identification number, location, and boundaries. The cancellation deed should also include the names and addresses of all parties involved in the cancellation, including the property owner, the person or entity canceling the registration, and any witnesses.

Stamp Duty Payment

The next step is to pay the stamp duty for the cancellation deed. The stamp duty is calculated based on the value of the property being canceled, and the rates may vary from state to state.

Notarization

Once the stamp duty has been paid, the cancellation deed should be notarized by a notary public. This involves signing the deed in the presence of the notary public, who will then affix their official seal and signature.

Registration

The final step is to register the cancellation deed with the relevant Sub-Registrar. The deed, along with the original property registration documents, must be submitted to the Sub-registrar's office. The Sub-Registrar will verify the documents and if everything is in order, they will register the cancellation deed and issue a new registration certificate to the property owner.

It is important to note that the process of registering a cancellation deed may vary depending on the state where the property is located.

Charges of Property Registration Cancellation

When a property changes hands, a type of property tax called stamp duty must be paid. The stamp duty rates may also vary based on the type of the property. For most real estate transactions, the buyer pays the stamp duty, which can be a fixed amount; it can also be a percentage of the total value of the property purchased. Certain registration fees and other service fees must also be paid to complete the registration or real estate transaction. The cancellation charges depend from state to state.

Laws Releted to Property Registration Cancellation

The laws for property registration cancellation in India are governed by the Registration Act, of 1908, and various state-specific laws and regulations. Below are key laws related to property registration cancellation in India:

The Registration Act, of 1908

The Registration Act governs the registration of various legal documents, including property registration and cancellation deeds. The Act specifies the formalities and procedures for the registration and cancellation of property. Each state in India has its specific laws and regulations governing property registration and cancellation. These laws may specify the stamp duty rates, registration fees, and other formalities and procedures for the cancellation of property registration.

Indian Contract Act, 1872

The Indian Contract Act is another important law that is relevant to property registration cancellation. The Act specifies the legal requirements for a valid contract, including the requirement for free consent, consideration, and a lawful object. If any of these requirements are not met, the contract, including the property registration, may be canceled.

Transfer of Property Act, 1882

The Transfer of Property Act governs the transfer of property in India. The Act specifies the various modes of transfer of property, including sale, mortgage, and lease. The Act also specifies the rights and obligations of property owners and buyers and the procedures for cancellation of property transfer.

Format for Property Cancellation

DEED OF CANCELLATION

This deed of cancellation is made on [Date] by [Name of the Canceller], son/daughter of [Father’s Name], and resident of [Address], hereinafter referred to as the “Canceller”.

WHEREAS, on [Date], the Canceller had registered a [Type of Property] situated at [Address of the Property] with the Registrar of [District], under Registration No. [Registration Number], hereinafter referred to as the “Registration”.

AND WHEREAS, the Canceller now desires to cancel the Registration for [reason] as detailed below.

NOW, THEREFORE, the Canceller hereby declares that:

1. The Canceller is the registered owner of the Property described in the Registration.
2. The Canceller desires to cancel the Registration with immediate effect.
3. The reason for the cancellation of the Registration is [Specify the reason].
4. The Canceller declares that the Property has not been sold or transferred to any other person/entity and that no other rights have been created over the Property.
5. The Canceller hereby relinquishes all rights, title, and interest in the Property arising out of the Registration.

IN WITNESS WHEREOF, the Canceller has executed this Deed of Cancellation on the date first mentioned above.

SIGNED AND DELIVERED BY:

[Name of the Canceller]

[Signature of the Canceller]

WITNESSED BY:

1.      [Name of the Witness]

[Address of the Witness]

[Signature of the Witness]

2.      [Name of the Witness]

[Address of the Witness]

[Signature of the Witness]

Conclusion

Cancellation of property registration in India can be done in certain circumstances, such as if the registration was done fraudulently or if the property was already sold to someone else before the registration was completed. The process of cancellation of property registration in India involves registering, filing, and so on.

It is a difficult and time-consuming process. However, it is an important legal remedy for people who have been wrongfully registered as owners of a property. It is suggested to consult with a property lawyer and follow the due procedure in the event of any cancellation of a registered property.

FAQs

Can a property registration be cancelled without going to court?

No, property registration cannot be cancelled without going to court. A court order is necessary to cancel the registration of a property.

What is the time limit for property registration cancellation?

Judge MR Shah and Judge BV Nagarathna said that the statute of limitations concerning substantive appeals for the annulment of the deed of sale, which is three years from the date of notification of the cancellation of the deed of sale, will be taken into account.

Is there any refund policy for the cancellation process?

Generally, there is no refund policy for the cancellation process of property registration in India. however, it is subject to compliance with certain conditions. Refunds are only permitted if the promoter fails to return the title to the property reserved and this fact is mentioned in the act of cancellation as the reason for canceling the transaction. The rules also state that the cancellation of an agreement must be recorded.   Property buyers claiming a refund of stamp duty can obtain a 98% refund of stamp duty. When requesting reimbursement, you must attach the original agreement as well as the original act of cancellation and have both documents registered. However, you will not receive a refund of the registration fee.

Which officer can cancel the land registry?

In India, the authority to cancel land registry or property registration rests with the Sub-Registrar of the area where the property is located.

Can a registered property be cancelled after the death of the owner?

Yes, a registered property can be cancelled after the death of the owner. The legal heirs of the deceased owner may file a petition with the court for cancellation of the registration.

About The Author:

Adv.S.K Dutta is a distinguished Advocate practicing in areas like Family Matters, Civil Matters, Company and Corporate law matters, Dispute resolution, NCLT matters, etc. He has 32 years of experience in the above matters. He has worked in large corporates and banks as an In-house Counsel too. Currently, he has started his practice under the brand name 104housoflegal. He is also a qualified FCA and FCS, he has served as an Independent Counsel at the Bombay High Court where his legal expertise backed by knowledge of Finance, his expertise and unwavering dedication to his clients earned him widespread respect and admiration in the legal community.