The Double Registration process for Apartments

The government of Andhra Pradesh may soon implement the double registration process for apartments. If the proposal gets approved, prospective buyers of apartments have to twice register the apartment purchased.

One registration for the actual built up area of the flat and the other for undivided share of land (USL) in the complex. Officials from the Stamps and Registration Department, Andhra Pradesh have forwarded the proposal to the Government for endorse ment, hoping that this would shore up the department’s fixed target of achieving Rs.5,500 crore this year. This is not new either to Karantaka or Tamil Nadu.

In Karnataka, undivided share of land is not registered separately but only along with the built up area. In Tamil Nadu, such a proposal was mooted and a “Ownership Flats Law (Regulation of the promotion of construction sale Management and transfer)” was drafted as early as 1989. This draft is still pending with the government. When contacted, the Tamil Nadu registration officials say that though such a proposal was made some time back the government at the moment is not thinking about this.

Till there is any change, the present laws governing the transfer of properties will continue and they do not compel the registration of both the land and flats. “To register either or both remains as an option”, says C.H.Gopinath Rao, Past National Chairman, and Institute of Valuers.

Escalating price

Andhra Pradesh officials point out that the decision to have separate registration for undivided share of land and built-up area of the flat was taken because of the escalating prices of land at all the municipal corporations in the State and also to discourage registration of half-built apartment. Fearing additional burden if the new proposal is endorsed, apartment welfare associations in Andhra Pradesh are protesting the new scheme. General Secretary Federation of Association of Colonies and Apartments (FACA), Andhra Pradesh, V. Kamesh Babu feels that double registration would further burden the middle class, which is already struggling to find finance for their dream house. “We are scaling back on this proposal. We will only implement if the common man is not burdened by it. The real estate market is already in slump and we don’t want to complicate things further,” says Commissioner and Inspector General of Registration and Stamps, Andhra Pradesh , B. Aravinda Reddy. However, officials argue that the new system, if implemented, would help purchasers. “If a building complex has eight flats of 1,000 sq. ft each on an area of 6,000 sq. ft of plot, the USL to be apportioned to each owner will be 6,000 sq. ft divided by 8, which is 750 sq. ft. The builder never gives this land. But if the rule is implemented, then the builder has to give and can’t use the land for his personal gains,” officials clarify.

Disclosures

Gopinatha Rao, who was part of the team that drafted the Ownership Flats Law, says that a mere compulsion to register both the land and building will not help. “The ownership law that was earlier proposed linked the registration of built up area of the flats with a set of disclosures on the part of the builder. The draft insisted that the builder must disclose the full nature of title, all liabilities of the property, allow for inspection of the documents, disclose the names of people who have purchased the flats, the price, approved plan and building specifications. This would have protected the buyers and any additional cost involved in registration would have been worth it.”

Original Courtesy  :  The Hindu

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