It is suggested by the ministry of urban development to provide a unique identity number (UID) to the property holders of the country for their real estate. The existing property registration is based on who pays the tax on the land or property. During the transfer of a property, the title and the extent of rights of the owners are not dealt which accounts for many disputes. In order to enable the resolution of such disputes and to organize the outdated land records, the new proposal of UID has been designed.
A Land Titling Authority (LTA) will be set up by the states to undertake the surveys of all lands and properties of rural as well as urban areas. It will also be responsible to issue titles and unique identification numbers and maintain the property records.
As per the new proposal, the property owner or the one with title certificate will be insured by the government against any legitimate counter claimant. While giving the title certificate, the ownership claim will be verified by the state government and guarantee the ownership on land or property. The certificate of title for the property owners will now include a unique pin number or U-pin. Information regarding the location, usage and ownership history of the property will be included in a database with respect to each UID and certificate of title. So, it turns easy to identify the land that is being purchased.
This process helps to reduce the time taken for the due diligence of land and trims the transaction costs, thereby, helping the developers. It also helps in expediting the projects. With the proposal of the new UID, no loss of relevance is associated with the current registration, stamp and deed of transaction. However, it will become mandatory to have the certificate of title.
Source: Economic times