The most frequently-occurring type of disagreement in Indian
real estate is land dispute. Cases range from of illicit land grabbing and
illegal land sales to instances of purchase of land where no actual purchase
has taken place – to name just a few.
The real estate market has historically been plagued by such
issues, and the current government’s initiative of facilitating e-registration
to streamline the registration of immovable properties is an extremely
progressive move which has been universally welcomed for its transparency and
ease of use.
E-registration has simplified the process for providing
evidence of titles and facilitating transactions, and will go a long way in
preventing the unlawful disposal of land. This online registration system
effectively put paid to the various underlying problems and loopholes in the
traditional land registration process, based on the Land Registration Act of
1925, which typically involves Powers of Attorney, sale or mortgage of land and
transfer of property under rent.
The Land Registration Act of 2002 introduced this new system
using verified electronic signatures to transfer and register immovable
property online.
The All-Important Tree Of Ownership
If a piece of land has been passed on for generations or has
seen multiple owners over time, a proper hierarchy of land holding needs to be
available so that current buyers or tenants can ascertain the exact value of
land or the rent according to current market values.
This is possible only when there is complete transparency in
document verification and full disclosure of details about the property – gross
carpet area, number of rooms, foundation details and wiring blueprints. Nothing
should be hidden from the future investor/buyer. E-registration has provided a
much-needed level of transparency to property dealings.
The Role Of A Broker After e-Registration
Does e-registration also negate the need for a real estate
broker? This is a fair question. While all details of the property may be
available online, this may not be enough information to make a firm investment
decision. The question of whether a particular property, regardless of how many
details are available online, makes good investment sense in light of many
other options can only be answered by a knowledgeable consultant.
The fees a broker will charge are definitely reduced by
e-Registration, but a broker is still required – not only to provide inputs on
the advisability of the investment proposition, but to mediate between the
involved parties and help negotiate the price.
E-registration
Procedure In Urban And Rural Areas
Since property in both urban and rural areas property comes
under the jurisdiction of the same State Government and both types of areas are
managed under a Tehsil (aka taluka or mandal) the e-registration of property
(housing or commercial rental) is fairly similar. The process will only differ
if the land is vacant or occupied (built upon). For vacant land, valuation is
done at current market price while for occupied land (with built-up properties
like shops, flats, cottages, etc.) it is done on the market price as well as
the gross investment utilized by a building. For instance, a single-storied
house will be valued higher than a multi-storied house if it is a prime
location. Otherwise, the latter commands a higher valuation. Also, leases of
immovable property in urban areas command a higher stamp duty (6%), while in
rural areas it is lower (5%).
Benefits of Land
e-Registration
The usual resource challenges at Registrar offices are
reduced drastically, allowing them to tend to more sensitive matters like
disputes.
Consumer pays a registration amount which is relatively
affordable.
There is no longer any need to visit different offices to
register a property
The details and documents pertaining to land records can be
accessed online at any time.
Transparency in the registration process increases
significantly, thereby also rationalizing broker fees and negating the need for
bribes to officials
The software calculate the stamp duty on the basis of the
stored data, and the duty can be paid online
A state-of-the-art system will reveal the current market
price of any land located at any location within the State
How To e-Register
Land
The procedure of doing e-Registration of land is simple. The
land registration and application form can be either downloaded online or
obtained from the concerned authority’s office in the state. After the
verification of form details and the related documents of the concerned person,
the land is registered in a matter of days, and this marks the completion of
the registration process and establishing the full-accredit ownership of the
property.
Safety Of
E-registration Of Land
E-registration is pretty safe. Hackers can do nothing to
compromise documentation, as they do not have access to the papers owners hold
relating to their land, such as transfer of Power of Attorney, land purchase
deed or wills of deceased person who were entrusted with the protection of the
property. Also, since most government servers are SSL encrypted with multiple
layers of security and a personalized login system, it is not easy to hack
consumer’s details.
However, to check the authenticity of the buyers and
sellers, it is always best to consult a professional real estate consultant who
has proper knowledge about the sector. Efficient background research is always
the crux of any good and profitable land deal. It is important to establish
that a land’s claim is retained by the owner, and that there is no scope for
the land mafia or government to contest it.
Also, before signing a deal, it is always advisable to visit
the site at least twice (giving a gap of a few months) in the presence of the
seller or buyer in order to verify overall authenticity.
Where Is
E-Registration Already Being Used?
States such as Kerala, Orissa, West Bengal, Karnataka, Tamil
Nadu, Rajasthan, Jharkhand, Sikkim, New Delhi, Maharashtra, Madhya Pradesh,
Punjab and Chhattisgarh have the facility in force since as long as the 1990s.
Such states have developed the Common Services Centre (CSC) Scheme where all
registrations are verified. These CSCs
cover almost all the rural and urban areas.
What About Old
Property?
For older property, the process is simple. Consumer need to
register the following documents:
Power of Attorney (sale, transfer, hold or deconstruct).
Non-testamentary instruments which purport directly to or
operate to create, declare or assign any right, title or interest of the value
of one hundred rupees and upwards, to any kind of immovable property (inherited
land).
Non-testamentary instruments which acknowledge full receipt
of payment of any consideration on the transfer of ownership to a new owner.
What Do Real Estate
Experts Say?
Real estate experts are in favour of registration of land,
especially e-registration, since it helps them to focus on larger projects.
Since e-registration adds transparency to the nation’s real
estate, it also adds credibility to each real estate agents’ and expert’s
credentials.
It helps to secure deals that will not land up in legal
troubles, since non-registration can lead to significant legal trouble.
Overall, one should always register (or e-register) their
land dealings and purchases to add a credible name to the entire holding or
immovable property comprised therein at that space of land. In cases where
there is a need to confer any kind of power – especially in patriarchal or
commercial holdings – land registration helps the government to ascertain the
rightful owner and avoid family feuds.
Also, e-registration helps in quickly producing evidence of
any transaction that affects the property or confers special powers to an
individual or firm. It pays to remember that a land owner does not exist in the
eyes of the government unless the land has been registered. To avoid the risk
of personal land being impounded, it makes sense to register all the land
documents online today at the respective State’s online website.
Source: Realty Fact
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