Under the law, any instrument indicating transfer of real estate must be registered. The sale deed and other relevant documents would have to be stamped and registered at the concerned Sub-Registrar's office having jurisdiction over the property.
The purpose of registration is to prevent fraud and provide security.
It also ensures that every person dealing with property, where such dealings require registration, may rely with confidence upon the statements contained in the registered document as a complete account of all transactions by which his/ her title may be affected.
An unregistered document relating to real estate leads to confusion in ownership, which may give rise to dispute.
So, the transfer of title in real estate is not be legally valid if the sale deed is not registered.
Therefore, registration in the name of the seller or the person transferring his property is crucial for the transfer of clear title in favour of the new owner.
Further, an unregistered document shall not be received as evidence in a court of law should a dispute arise.