Since demonetisation, there has been the speculation that the coming budget would make property cards mandatory for future transactions. Could it be a coincidence then that gift deed registrations have gone up substantially across Bengaluru? Once property cards are made compulsory, data on benami transactions and property hoarders will be easily available to law enforcement authorities.
A gift deed registration is done when transferring a property to a family member or a friend. Here, no monetary transaction is involved, but under the law, it is necessary to register the gift deed to make it valid. The stamp duty and registration fees vary from state to state. In Karnataka, the stamp duty for gift deed registration is fixed at Rs 5,000, in addition to the registration fees (if the gift deed is executed within family members) of Rs 200 in rural areas and Rs 500 in urban centres. Whereas, for a property sale transactions, the stamp duty is 5.5 per cent of the sale consideration amount, plus 1 per cent registration fees.
When the gift deed registration fee is a mere Rs 5,500 (within family), property owners are now looking at this transaction as an easy option to transfer their properties. So much so that sub-registrar offices in the city have seen around 30 per cent increase in gift deed registrations in the last three months.
The revenue department’s survey, settlement and land records division, which has executed the Urban Property Ownership Record — also called the property card scheme in a few parts of the state — is gearing up to roll it out in Bengaluru.
In Shivamogga, property cards are made mandatory for property transactions. The department has proposed making property cards mandatory for registrations and it is likely that the forthcoming budget may come out with this announcement. This will be a big step in identifying property hoarders, benami properties, and will bring down illegal transactions. In the realty industry, there is already a buzz about property cards and people are in a hurry to part with their excess properties among relatives.
“Demonetisation has had its impact on the property registrations, which has dipped, but the gift deed executions have increased since the last three months. Of course, this is not great revenue to the department, but it is indicative of the fact that property hoarders are alarmed. The proposed property card, which will be a big step in streamlining property registrations, has also sent alarm bells ringing. A 30 per cent increase in gift deed registration in three months is quite a healthy number and the figures will further go up,” a senior stamps and registration department official told media.
The property card will be a sacrosanct ownership/title document, which cannot be tampered with — it is actually not a card, but a thick, six-page record containing the property details, number, area, date of registration, owner, loan, legal encumbrance, owner’s picture and cadastral details.
The cards are issued after following due procedure — from the department’s side as well as after verifying all the property documents of the owner. The revenue department will carry out spatial and manual survey of individual properties and once the surveyors ascertain the credentials of the ownership, a draft property card will be issued to the owner, with a 30-day waiting period, for him/her to check the information. After a month, if no objections are received, the final property card will be generated. Remember, however, that land encroachers and illegal property holders can easily be tracked here.
Credits Bangalore Mirror