In September last year, Maharashtra pioneered e-registrations for primary property sales, utilizing blockchain for document security and verification. A self-help portal aided buyers and developers, streamlining the process. Maharashtra's move follows its successful implementation of e-registrations for rental agreements in 2014. With nearly 9,000 documents registered online within a year and around 300 developers adopting e-registration, the convenience and efficiency have been embraced. This method allows buyers to complete registrations and stamp duty payments online, reducing foot traffic at registration offices. Positive reception from buyers and developer bodies showcases the potential to transform property registration, benefiting the real estate sector and homeowners.
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In September last year Maharashtra became the first state in the country to introduce e-registrations for primary sales, i.e., for properties sold directly by the developers. Re-sale properties cannot be registered via this process. The state government announced it would use blockchain technology to protect documents from tampering and aid in the process of verification of original documents. Alongside the announcement, the government launched a self-help portal for e-registrations to educate buyers and developers and assist them in the process. Developers were encouraged to upload an agreement template which once approved via this portal could be used for all further sale transactions.
In India, the transfer of any immoveable property exceeding the value of Rs 100 must be registered and stamped as per provisions of the Registration Act 1908 and the Indian Stamp Act 1889. In the state of Maharashtra, the registration charges are at 1% of the property value with a maximum cap of Rs 30,000/- and the stamp duty rates range between 2% to 6% depending on the location of the property and person (man or woman) to whom the property is being registered.
Leading the digitisation evolution, Maharashtra was also the first to introduce e-registrations for leave and license agreements back in 2014. This initiative met with tremendous success witnessed by its quick adoption. Riding this wave, the state government went on to introduce e-registrations for primary sales in 2022. According to data released by the registration department, over the course of the last year, developer offices have successfully registered nearly 9,000 documents online. Approximately 300 developers across Maharashtra have embraced the concept of e-registration and created the requisite set up to facilitate the service in their sales offices.
The process of e-registration has simplified and quickened the entire procedure. Through this method buyers can register their purchase in the comfort of a sales office, make the registration and stamp duty payments online via the government portal and receive the stamped and registered documents within hours of completing all formalities. The shift to e-registrations has also significantly reduced footfalls at the sub registrar’s offices dedicated to new property registrations. As a result, registration officials are actively encouraging more developers to choose this convenient and efficient facility.
Reception towards e-registration has been notably positive amongst buyers as well with encouraging user experiences and constructive feedback. Developer bodies are actively involved in raising awareness about this convenient method. The Confederation of Real Estate Developers' Associations of India (CREDAI) and the National Real Estate Development Council (NARDECO) have taken steps to encourage their members to conduct the first sale of project registrations from their own offices.
In conclusion, the initiative to enable online property registration from developers' offices in Maharashtra has gained remarkable momentum. With hundreds of developers opting for this streamlined approach, the project has successfully reduced congestion in traditional registration offices and is expected to gain even more traction in the coming months. As user experiences remain positive and awareness increases, this innovation has the potential to reshape property registration procedures, benefiting both the real estate sector and prospective homeowners.
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