In a significant move that will help curb fraudulent property deals and protect real estate buyers, the Delhi Government is bringing a proposal to enforce certain checks and balances.
The Government plans to make it mandatory for the seller of the property to give an undertaking to the buyer that there is no legal dispute involving the property being sold and that he/she is the genuine owner of the said property.
This protects the buyer as he can always take legal action against the seller if there is any dispute involving the property later because the seller had given an undertaking on the property title being undisputed.
In case the buyer does not have such an undertaking from the seller then the registry of the property will not be completed. Hence it is also incumbent upon the buyer to conduct ‘due diligence’ before buying a property.
The decision will help reduce corruption and the role of touts and intermediaries in property transactions. The proposal is to be tabled at the Cabinet meeting on Saturday.
According to the Cabinet proposal, the seller should ensure that the property being sold is free from any legal encumbrances and that no provisions of the Delhi land Reforms Act 1954 are being violated by the said transfer.
“In this manner the responsibility is on the seller of making a full disclosure of facts to the effect that their property does not attract the provisions of Sections 33, 74 (4), 81 and other relevant provisions of the DlR Act and is free from any other legal encumbrances in any court of law. The Revenue Department's role in this is to facilitate the transaction by making relevant information available freely and easily to the citizen,” the proposal said.
The proposal further stated that the buyer should be advised to be conduct 'due diligence' before entering into any transactions.
“This would not only ensure time-bound registry but also negate the role of middlemen in property transactions and reduce corruption. This would give relief to the people going from one office to another for obtaining status reports.
The status report on property is required during mutation from the Tehsildar,” a Delhi Government official said.
For registration of sale deed/transfer deed, Revenue officials will facilitate availability of revenue records and copies of gazette notification of land notified under land Acquisition Act 1954.
The competent authority will be the Additional District Magistrate (ADM).
“The department will issue instructions that the Tehsildar and other revenue officials will be duty-bound to provide details regarding status of land whenever a request for mutation is received,” said the officials.