Land title registration gets Delhi govts okay

The Delhi Cabinet on Monday gave a formal nod to land title registration system for the Capital. It will replace the present system of deed registration and the government will be guarantor for the owner,it was decided.

The Delhi Cabinet on Monday gave a formal nod to land title registration system for the Capital. It will replace the present system of deed registration and the government will be guarantor for the owner,it was decided.

The system,prepared by the US Agency for International Development-India (USAID) on behalf of the Delhi government,will be tabled in the next Assembly session. It was vetted by the governments legal department. Andhra Pradesh already has already introduced it.

The system will facilitate property transactions,encourage investment and improvement,and reduce disputes and uncertainty over ownership.

The USAID report says due to the difficulty of proving the title,buyers and mortgagers face a risk the title to a property may be imperfect or fraudulent. It says there is also a risk to banks and home finance companies,which may be unable to foreclose a mortgage,or the property might have been used to secure a previous mortgage.

Government officials said many house-owners are unable to prove legitimate ownership or are often not able to access mortgage finance. This deprives banks and finance companies of a significant part of potential market.

The government also loses out as stamp duty and transfer tax are collected on only a minority of transactions,officials said.

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