registration act

1. Deposit of Title Deed is not compulsorily registrable under the Registration Act.

However, the Lending Bank has to get it registered with the Central Registry of Securitisation Asset Reconstruction and Security Interest of India created under the SERFAESI Act.  The object of setting up the Registration System under  the SARFAESI Act is to create a public data base about encumbrances created on properties to secure loans and advances given by the banks and financial institutions, as also transactions of securitisation or asset reconstruction undertaken pursuant to the provisions of the SARFAESI Act. 

The Central Government has issued the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Central Registry) Rules, 2011 and prescribed different Forms (as mentioned below) to be used for the purpose of filing information for registration in respect of transactions of securitisation, asset reconstruction of financial assets and security interest over property.

FORM I - For Creation and modification of Charge.

FORM II - For particulars of Satisfaction of Charge.

FORM III - For Securitisation or Reconstruction of Financial Assets.

FORM IV - For Satisfaction of Securitisation or Reconstruction of Financial Assets.

It may be observed from Form I relating to creation and modification of charge that it is restricted to charge on immovable property by way of mortgage by deposit of title deeds.   

The DUE DILIGENCE BY THE PURCHASER OF THE PROPERTY WILL NOT BE COMPLETE, UNLESS THE VERIFICATION OF THE RECORDS WITH THE CENTRAL REGISTRY under the SERFAESI Act.

The Registration has to be got done by the Bank/Financial institution concerned.  Not Registring the mortgage transaction will entail penalty on the Bank.