Circular R.C.No.29639/C2/2018, Registration of Deposit of Title Deeds

The Office of the Inspector General of Registration, Chennai-28, issued Circular R.C.No.29639/C2/2018 dated 22 January 2019 to guide registering officers on stamp duty and registration fees for deeds recording deposits of title deeds. The guidance affects property owners who offer title deeds as security, borrowers, lenders and registering officers.

Multiple owners, loans and lenders

Circular R.C.No.29639/C2/2018 distinguishes between title deeds held as common security and title deeds earmarked for particular loans.

• Where multiple persons deposit title deeds for loans from one lender without linking particular deeds to particular loans, the deposits are common security. A single stamp duty and registration fee applies because all deposited deeds secure every loan and cannot be redeemed until all loan amounts are repaid.
• Where particular title deeds are specifically earmarked for particular loan amounts, multiple stamp duties and registration fees apply according to that earmarking.
• Where one or more persons deposit title deeds for loans from multiple lenders, multiple stamp duties and registration fees apply.
• Where one person deposits title deeds to secure loans taken by more than one person from a single lender, a single stamp duty and registration fee applies. The circular explains that only one person contracts with one lender.

Earlier deposits and future advances

Circular R.C.No.29639/C2/2018 also explains how a new deed should treat earlier deposits and possible future lending.

• If an earlier deposit was already recorded in writing and properly stamped, no further duty or fee is required for that earlier deposit.
• If earlier deposits made on different dates were not recorded in writing, multiple stamp duties and registration fees apply according to the number of deposits made on different dates.
• If a deed secures a stated loan amount and also refers to further sums that may be advanced later, duty and registration fee on the stated loan amount are sufficient. The maximum stamp duty and registration fee need not be collected merely because future advances are mentioned.

Farmer concession

The stamp duty concession under G.O.Ms.No.73 dated 22 July 2006 is not limited to title deeds for agricultural land. It may also apply where a farmer deposits title deeds relating to other property.

The concession applies only when the farmer deposits the farmer's own title deeds for a loan obtained by that farmer. It does not apply merely because the person depositing the title deeds is a farmer when another person receives the loan.