Do’s and don’ts of land titling Bill

The USAID report said buyers and mortgagers always face a risk if there is difficulty in proving the ownership of a property. There is also a risk to banks and housing finance companies — they may be unable to foreclose a mortgage. Moreover,many households are unable to prove legitimate ownership and are often not able to access mortgage financing. This in turn deprives banks and finance companies of a significant part of the potential market.

The system is based on the Torrens Title System,followed in the UK,Canada and many East European countries and is named after Sir Robert R Torrens,who introduced it in South Australia in 1858 and later lobbied for its adoption in other parts of the country.

What does it do?
* A land title guaranteed by the state provides a conclusive proof of title to property ownership and provides and certifies the land boundaries based on actual ground surveys
* These titles are then recorded on an ‘electronic register’,which is accessible online to the public
* A registration authority will be set up,functioning under deputy commissioners of each district after amending the Indian Registration Act,1908,the Transfer of Property Act,1882,and the Indian Contract Act,1872.
* The system places the responsibility of maintaining land records and guaranteeing titles on the state,ensuring credibility,which is absent in a privately owned system.

The mechanis
* It involves having an initial systematic survey done by trained personnel to determine the ownership of a property. Specific areas will be notified and unique identification numbers will be allocated to each property surveyed. Officials indicated that the government will begin with planned DDA colonies,which are likely to have more systematic land records.
* This will be followed by a transition period of seven years that will allow room for regular updations in the survey conducted. Provisional titles will be awarded for the period.
* The transition period is followed by a three-year challenging period in case there are ownership disputes that are yet to be settled. No conclusive title is conferred on the property unless settled by the tribunal to be set up by the authority.

The title certificate will indicate
* The unique identification number of the property.
* Present owner of the said property
* Details of past transactions or interests on the property,including existing mortgages,leases and powers of attorney.
* Details of pending ownership disputes.

The tribunal
* The tribunal will handle all property disputes in Delhi out of the jurisdiction of the courts.
* The tribunal will have the same powers as a civil court under the Code of Civil Procedure,1908.
* The Supreme Court to have powers to admit appeals against orders of the Appellate Tribunal.

Indemnification
* In case of a fraud or mistake in registering a conclusive title,the government will pay compensation to the cheated party.
* In case a government official is found guilty of allowing such a fraud,he or she is liable for penalty or even dismissal.
* The government looking at raising the indemnity fund by raising charges and make it as self-financing as possible. The initial investment is expected to be about Rs 200 crore.

Benefits
* Property owners will have a sense of ownership security and will be able to mortgage their property for raising loans.
* Financial institutions will be able to check the status of the property before granting mortgages.
* The problem of multiple wills and fraudulent transactions will be taken care of.
* The government will be able to curb stamp duty and property tax evasion,improving its revenue collection.