Industry Odisha Bureau, Aug 29: The Delhi government is considering tighter rules for property registration procedures. Builder-landowner agreements may become mandatory to register going forward. A 1% registration fee could apply under the proposed system. Officials said the move aims to reduce ownership and property-division disputes.
Currently, agreements involving plots around 80 to 100 square yards remain informal. Builders often construct three- or four-storey buildings under such arrangements. Many agreements reportedly rely on stamp papers worth only ₹50 or ₹100. Some deals also include cash payments for specific floors in buildings.
These informal arrangements can result in lost government revenue over time. They can also lead to later disputes between builders and property owners. Under the proposed changes, stamp-paper execution alone would not suffice. Agreements would instead need formal registration with the Sub-Registrar’s office.
Failure to register could create problems during subsequent property sales. Unpaid registration fees could potentially be recovered when a flat sells. This could add an additional 1% cost burden for buyers. The proposal seeks stronger documentary clarity around ownership and built-up space.
The Delhi government is also reconsidering rules for GPA-based property transfers. Stamp duty may apply when GPA transfers occur outside blood relations. A 4% stamp duty on such GPA transactions is under consideration. The Collector of Stamps would determine which treatment each document requires.
Under the proposed process, the Collector must issue a reasoned order. This determination must typically arrive within a 30-day period. Exceptional cases could see that period extended by three months. Until then, such GPAs would remain ineligible for registration entirely.
Sub-Registrars could face disciplinary action for registering unapproved GPA documents. Documents must first be examined and cleared by the Collector. This accountability measure is intended to strengthen procedural compliance overall. The proposed system distinguishes ordinary GPAs from full Conveyance Deed transactions.
Together, these proposals could push more transactions toward formal documentation and registration. Actual effects will depend on implementation, compliance and regulatory enforcement. Buyers, builders and landowners may face new procedural and cost considerations ahead.
