Letter No.11672/C2/2020, Clarification on Registration of Undivided Share of Land, 11 May 2020
The Tamil Nadu Registration Department, through the Inspector General of Registration, issued Letter Number 11672/C2/2020 dated 11 May 2020 to clarify registration of an undivided share of land in completed building projects. For a first sale conveying only an undivided share of land, registering officers must not insist that the built-up area also be included merely because a completion certificate has been issued, and a separate construction agreement may still be registered.
What the clarification governs
Registration Department Letter Number 11672/C2/2020 dated 11 May 2020 concerns the first sale of an undivided share of land, commonly called UDS, in a building or apartment project. It was circulated by the Inspector General of Registration to all Deputy Inspectors General of Registration, District Registrars responsible for administration and audit, and Sub-Registrars.
The clarification follows Commercial Taxes and Registration Department Letter Number 3202/12/2020-1 dated 18 March 2020. That communication stated that the Indian Stamp Act, 1899 and the Registration Act, 1908 do not require registering officers to insist that a building be included in a document when the document conveys only land.
Who is affected
Registration Department Letter Number 11672/C2/2020 is relevant to:
- Buyers receiving a first sale deed for UDS in an apartment or large building project.
- Landowners or vendors conveying UDS without conveying rights in the constructed area.
- Developers, builders or contractors entering into separate construction agreements.
- District Registrars, Sub-Registrars and other registration officials handling these documents.
Key instructions
Registration Department Letter Number 11672/C2/2020 gives the following directions:
- When a document is presented for the first sale of UDS alone, the registering officer must not demand that the building or built-up area be added solely because the competent authority has issued a completion certificate for the project.
- A completion certificate does not, by itself, determine the title to the land or require the apartment to be included in the UDS sale deed.
- Stamp duty is to be collected on the property actually conveyed through the document. Registering officers need not go beyond the scope of that document.
- There is no barrier to registering a separate construction agreement of the kind covered by Circular Number 16345/C2/2013 dated 28 October 2013.
- Deputy Inspectors General of Registration were directed to acknowledge the instructions and obtain acknowledgements from District Registrars and Sub-Registrars.
Practical effect
Registration Department Letter Number 11672/C2/2020 means that issuance of a completion certificate alone is not a valid reason to force a first UDS sale deed to include the built-up apartment. The document presented for registration remains the basis for identifying what property is conveyed, while a separate construction agreement may be registered independently.
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 a Sub-Registrar require the apartment to be included because the project has a completion certificate?
No. For a first sale document conveying only UDS, the Sub-Registrar must not insist on including the building solely because a completion certificate has been issued.
Can the construction agreement be registered separately from the UDS sale deed?
Yes. Registration Department Letter Number 11672/C2/2020 states that there is no impediment to registering a separate construction agreement as contemplated by Circular Number 16345/C2/2013 dated 28 October 2013.
What property should be considered for stamp duty under the clarification?
The enclosed government instruction states that stamp duty should be collected on the property conveyed through the document. Registering officers need not go beyond the scope of the document.
Does the specific instruction cover every later resale of an apartment?
The instruction expressly refers to a document presented for the first sale of UDS alone. The source text does not state that the same direction applies to later resales.
