The Government of Punjab on July 23rd 2024 issued The Registration (Punjab Amendment) Act, 2023 to further amend the Registration Act 1908, in its application to the State of Punjab. This important announcement affects how certain property transactions and mortgages are handled in the state.
Changes in Property Registration
The new amendments focus on two main areas:
A. Certificates of Sale
- If you buy a property through a public auction, conducted by a Civil or Revenue Officer, Civil Court, or any authorized authority, the certificate of sale you receive must now be registered. This means more transparency and legal protection for property buyers.
B. Equitable Mortgages
- When you use your property title deeds as security for a loan (this is known as an Equitable Mortgage), the agreement must be registered. This is a big change because it ensures that all such mortgage agreements are officially recorded, providing more security for both lenders and borrowers.
- This requirement overrides a previous provision in the Transfer of Property Act, 1882, making registration mandatory for these kinds of agreements.
- Removal of an Old Clause
- The law also removes a specific clause (clause xii) from sub-section (2) of section 17 of the Registration Act, 1908, which states, “Any order granting a loan or instrument of collateral security granted under the Land Improvement Loans Act, 1883”. This omission is part of the streamlining process to make property transactions clearer and more straightforward.
The amendments introduced by the Punjab Government aim to make property transactions more transparent and secure. By requiring registration of sale certificates and equitable mortgage agreements, the new law ensures that all significant property dealings are officially recorded. This reduces the risk of fraud and provides a clear legal framework for resolving disputes.
The new rules shall come into force from July 23rd 2024.
