Official guidance, Tamil Nadu land law
Circular No. 24011/C1/2020, dated 8 October 2020
The Tamil Nadu Registration Department, through the Head of the Registration Department, issued Circular Number 24011/C1/2020 dated 8 October 2020 to guide registration officers when an encumbrance certificate shows a sale agreement, mortgage, deposit of title deeds or lease. It says further documents should not be refused solely because such an entry remains, and sets conditions for accepting registration.
What the circular governs
Circular Number 24011/C1/2020 dated 8 October 2020 governs how registration officers must examine encumbrance certificates before registering further documents concerning a property. It addresses cases where registration was being stopped because the certificate continued to show an expired sale agreement, a mortgage, a deposit of title deeds or a lease.
The Tamil Nadu Registration Department explains that these transactions may create contractual rights, a charge or a leasehold interest, but do not by themselves transfer full ownership. Registration officers should therefore consider whether an entry actually affects the document holder's right, rather than automatically issuing a check slip or refusal order.
Who is affected
Circular Number 24011/C1/2020 applies directly to registration officers and is relevant to property owners and document holders seeking to register a sale or another later document. It is also relevant to agreement purchasers, banks, mortgagees and lessees whose recorded interests may still appear in the encumbrance certificate.
The earlier registration procedure referred to in the circular requires officers to examine an encumbrance certificate obtained within the 10 days before presentation. Officers must also confirm that the person executing the document is the person shown as the latest purchaser or rights holder. This examination is intended to prevent forged documents and impersonation.
Conditions for further registration
Circular Number 24011/C1/2020 gives the following directions:
- For a sale agreement whose stated period has expired, the current document must disclose that expiry and state that no case is pending under the Specific Relief Act, 1963, or that the three year period for filing a case has expired.
- A separate declaration may be accepted. The registration officer must verify the stated expiry periods and confirm that the agreement purchaser has not filed a supported objection showing that a court case seeks enforcement of the agreement.
- If a mortgage or deposit of title deeds remains recorded, the later document may be accepted when accompanied by a no objection certificate from the relevant bank or mortgagee.
- If a registered lease has expired, the owner may present a sale or another later document for registration.
- If the lease is still current, a power of attorney may be accepted when it records that the lease remains in force and that later documents require a no objection certificate from the lessee.
- For other documents presented during an unexpired lease, registration may be accepted when a no objection certificate from the lessee is produced.
This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.
Common questions
Can registration be refused only because an expired sale agreement still appears in the encumbrance certificate?
Not automatically. Registration may proceed if the agreement period has expired, the required statements and declaration are provided, and there is no supported objection showing a court case to enforce the agreement.
What is required when a mortgage still appears in the encumbrance certificate?
The document may be accepted for registration when a no objection certificate is obtained from the relevant bank or mortgagee and submitted with it.
Can an owner register a sale after the recorded lease period has ended?
Yes. Circular Number 24011/C1/2020 says a sale or another later document presented by the owner may be accepted when the earlier registered lease period has expired.
What happens if the lease is still in force?
A power of attorney may be accepted if it states that the existing lease remains in force and later documents require the lessee's no objection certificate. Other documents may be accepted when the lessee's no objection certificate is submitted.
