The Delhi government is preparing to amend property registration rules that would require mandatory registration of builder-landowner agreements with sub-registrar offices, as reported by Navbharat Times. Under the proposed system, a 1% registration fee may be charged on such agreements, with the government believing this move could help reduce disputes over property division and ownership rights. According to officials quoted in the report, signing such agreements only on stamp paper would no longer be sufficient once the proposed changes to the Registration Act are introduced.
At present, particularly in cases involving smaller plots of 80 to 100 square yards, builders often enter agreements with landowners to construct three- or four-storey buildings, as reported by Navbharat Times. Many of these arrangements are made on stamp papers worth only ₹50 or ₹100. Some agreements also include provisions for cash payments in exchange for a particular floor in the building. Officials noted that such informal arrangements not only result in a loss of revenue for the government but can also lead to disputes between builders and property owners later.
Under the proposed changes, failure to register builder-landowner agreements could create complications when a flat covered by the agreement is subsequently sold, according to Navbharat Times. In such cases, the pending registration fee could be recovered later, resulting in an additional 1% cost for the buyer. This penalty structure is designed to ensure proper documentation and prevent future disputes over property ownership.
The Delhi government has also taken a stricter approach towards property transfers through General Power of Attorney (GPA), as reported by Navbharat Times. Stamp duty may be imposed when property is transferred through a GPA to someone outside the immediate blood-relations category, with the amount determined by the Collector of Stamps. The government is also considering imposing a 4% stamp duty on GPA transactions as part of the proposed changes to the Registration Act.
According to an Indian Express report, Sub-Registrars could face disciplinary action for registering certain power of attorney documents without first obtaining an order from the Collector of Stamps. Under the proposed process, the Collector of Stamps will have to issue a written, reasoned order within 30 days to determine whether a document qualifies only as a GPA or is liable for full stamp duty applicable to a Conveyance (Sale) Deed. Until the Collector passes the order and applicable stamp duty is paid, such GPAs will remain ineligible for registration.
