President had given consent in May 2012 to Registration (Maharashtra Amendment) Act, 2010. Now, it has been notified by Government of Maharashtra that it will take effect from 1 April 2013. Salient features are as follows: 1) Under the Registration ( Maharashtra Amendment) Act, 2010, which amends the Indian Registration Act, 1908, it will now be mandatory to inform the state registration office of mortgage details within 30 days of a mortgage being executed. Failure to do so can attract a jail term of one to three years and also a fine. 2) In addition to above, three types of documents must now be compulsorily registered within 30 days of the deals being executed. They are (1) a power-of-attorney (POA) when it is used to execute a sale or any other transfer of property; (except in case of close relatives) (2) agreements that involve a title deed being deposited as security for the repayment of a loan or any other existing or future debt; and (3) a sale certificate when a property is acquired under any recovery law. Properties recovered under recovery laws usually involve those where the previous owner has defaulted on loans or mortgages. 3) If mortgaged properties are sold when the registration office hasn't been informed of the mortgage within 30 days, the deal will be declared invalid and the seller has to refund the amount paid by the buyer with 12% interest. 4) Other new rules involve informing the registrar's office within 30 days of demand notices and court orders that relate to the attachment of any property, or the creation, transfer or cancellation of any right over a property. This is aimed at ensuring banks as well as buyers and sellers to inform the registration office of all business conducted. |