People often have many questions regarding property ownership and its legal rights. Two of these important words are – lease and registry. These two words have different meanings, but many times people consider them to be the same. In this article we will understand the difference between lease and registry and also how the registry is done from the lease.
In case of property, both lease and registry are important documents. The lease is evidence of a temporary ownership, while the registry is of absolute ownership. It is important to understand the difference between the two, as it affects your property rights and obligations. Let us understand in detail what these two are and what is the difference between them.
What is a lease? (What is Patta?)
A lease is a document that gives a person the right to use a property for a certain period. This is a form of temporary ownership. The owner of the leased property can be the government or a private individual.
Key Features of Lease:
- Term: The lease is for a fixed term, usually 30, 60 or 99 years.
- Right to use: The lessee has the right to use the property, but does not own it.
- Rent: The lessee has to pay rent or lease rent on a regular basis.
- Transfer: The leased asset cannot be sold or transferred unless stated in the terms of the lease.
What is registry? (What is Registry?)
Registry is the legal process by which ownership of a property is transferred from one person to another. This is proof of full ownership.
Key Features of the Registry:
- Complete Ownership: After registration, the buyer becomes the complete owner of the property.
- Legal recognition: Registry is a government process that gives legal recognition to the ownership of property.
- Stamp Duty: Stamp duty and registration fees have to be paid for registration.
- Right to transfer: The owner can sell or transfer the registered property as per his wish.
Difference between Patta and Registry
There are several important differences between a lease and a registry. Let us understand these differences through a table:
| parameters | belt | registry |
| ownership | Temporary | Complete |
| Duration | for a certain period of time | Permanent |
| transfer | limited or restricted | absolute rights |
| rent/tax | have to pay rent | Have to pay property tax |
| legal status | less strong | Strong |
| bank loan | difficult | Easy |
| price | Less | More |
| right of use | Limited | Complete |
How is the lease registered? (How to Convert Patta to Registry?)
The process of converting leasehold property into registered property is called freehold conversion. It is a complex process that involves several steps:
- Application: Submitting the application to the concerned government department.
- Document Submission: Submitting all the required documents, like lease deed, identity proof, etc.
- Fee Payment: Paying the conversion fee.
- Scrutiny: Scrutiny of applications and documents by government officials.
- Approval: Approval of conversion by the competent authority.
- Execution of Deed: Execution and registration of freehold deed.
Benefits of Converting Patta to Registry
There are several benefits of converting a leasehold property into a registered property:
- Full Ownership: You become the full owner of the property.
- Value appreciation: Registered property has higher market value.
- Easy sale: It is easy to sell a registered property.
- Bank Loan: Bank loan is easily available against registered property.
- Legal security: Registered property is more legally secure.
Challenges in Converting Patta to Registry
The lease registration process may also pose some challenges:
- Lengthy Process: This process can be quite time consuming.
- High cost: Conversion fees and other expenses can be quite high.
- Documentation: It may be difficult to collect all the required documents.
- Change in rules: Changes in government rules may affect the process.
- Disputes: Sometimes disputes may arise regarding ownership.
Legal Aspects of Patta and Registry
Both lease and registry have legal significance. Some of the major laws related to these in India are:
- Registration Act, 1908: This Act regulates the registration of property.
- Transfer of Property Act, 1882: This Act defines the rules for transfer of property.
- Stamp Act, 1899: This Act regulates the stamp duty charged on documents.
- Land Revenue Act: This is the state-level law that regulates the management of land and revenue collection.
What to choose in lease and registry? (What to Choose: Patta or Registry?)
This decision depends on your individual circumstances and needs. Some points you should keep in mind:
- Budget: Registered property is usually costlier than leased property.
- Purpose: If you want to stay for a long time, registry may be a better option.
- Location: Only leased properties may be available in some areas.
- Legal protection: Registered property provides greater legal protection.
- Future plans: If you are planning to sell or mortgage the property, registry is a better option.
Disclaimer:
This article is provided for general information purposes only. Although we have attempted to provide accurate and up-to-date information, laws and regulations regarding property matters may change over time. Therefore please consult a qualified professional before making any legal or financial decisions. The author or publisher will not be responsible for any loss or damage caused by the use of this information.
