Conclusive Titling System
Introduction:
Deeds relating to transactions on title of immovable property are presently registered under the Registration Act, 1908 (“Act”), without any verification of title of the land owner. In such transactions, the onus of checking records of past ownership of a property is on the purchaser. Therefore, ownership of property in India, is presumptive in nature, and is subject to challenge. Determining who is the unchallenged land owner remains a difficult task for all concerned parties as registering any transaction under the said Act is just an evidence of the transaction and does not by itself confer any title on the land owner. In the absence of clear land titles, it may be difficult to get clarity on the ownership of a property. Any investment on a land which is encumbered or has unclear land records, may lead to potential litigation.
This article provides a brief overview on the need for conclusive titling system and other matters in this regard.
Conclusive Title:
A Conclusive titling system, in contrast to the present deeds of registration, provides for a (a) system of title registration (i.e. a system of registered property titles) that can serve as a primary evidence of ownership, and (b) system of guaranteed titling (i.e. title insurance / system of indemnifying the entries in records) in the event of any ownership disputes.
Need for Conclusive Title:
Unclear land titles can be attributed to several factors such as (a) land related disputes, (b) presumptive land titles, (c) high registration fee and charges for deeds registration, (d) poor maintenance of land records, (e) non-reflection of the exact position on the ground in the records, and (f) lack of integration among the departments dealing with land registration and records.
The conclusive titling system aims to curb fraudulent practices and bring transparency in land related transactions and wherein the conclusive record of title would be a true depiction of the ownership status.
Challenges:
Moving to a conclusive land titling system poses several challenges as it requires (a) updating of all the existing land records to ensure that they are free of any encumbrances, (b) integration of information of land records which are currently spread across multiple departments, (c) amending the relevant provisions of central and state land laws, (d) creating a unified legal framework that provides for government guaranteed land ownership, and (e) survey/ re-survey, and updating of all survey and settlement records.
Reforms by Government:
In 2008, Government of India introduced the National Land Record Modernization Programme, presently known as Digital India Land Records Modernization Programme, with the main objective of implementing a system to achieve complete computerisation of the registration process and digitisation of all land records, in order to improve the quality of land records while making them more accessible.
Thereafter, in 2011[1] the Government promulgated the Land Titling Bill for consideration of all the states. The said bill provided for:
- Establishment of a conclusive system in registration of the immovable properties by electronically recorded titles;
- A mechanism to invite objections and resolution of disputes through special tribunals within prescribed period. Under this mechanism, the person in the property record shall be considered as the conclusive owner of the said immovable property;
- Constitution of Land Titling Authority at the state level for preparing a record of all immovable properties in its jurisdiction;
- Establishment of Title Registration Offices, wherein the Title Registration Officer shall be in charge of creating and maintaining a Register of Titles;
- The Register of Titles shall include detailed description of each immovable property including details such as (i) description of the property map reflecting the demarcation of the property and a location sketch of the property, (ii) unique identification number, plot number and flat number relating to the property, (iii) total area, built up area, vacant area, and undivided share in the land (out of the total plot area), (iv) survey numbers with sub-divisions, provisional title record, conclusive title record and the status of mortgage, charges, other rights and interests in the property, (iv) details of transfer of the property and history of past transactions, and (v) any litigations pertaining to the said immovable property;
- The entries made in the Register of Titles to serve as conclusive evidence of ownership. These entries shall be maintained / updated in electronic form, indemnified, and kept in the public domain;
- Establishment of District Land Titling Tribunal and State Land Titling Appellate Tribunal for redressal of any grievances of the aggrieved or for resolution of any objections to the entries made in the Register of Titles;
- Provisions of relevant laws such as the Indian Stamp Act, 1899, the Registration Act, 1908, the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 the Limitation Act, 1963, and the Survey and Boundaries Act, 1923 shall be amended accordingly.
Implementation:
The state of Rajasthan has already introduced the process of giving guaranteed land titles in urban areas by introducing the Rajasthan Urban Land (Certification of Titles) Act, 2016. The state of Maharashtra proposes to introduce the Maharashtra Land Titling Act, providing for a single window mechanism for authenticating land titles. The said Act has been cleared by its state cabinet recently. The Government of Telangana has proposed to bring in a title guarantee legislation in the near future. Further, the Andhra Pradesh State Assembly passed the bill on land titling which among other things provides for establishment, administration and management of a system of title registration of immovable properties. The Government of Andhra Pradesh is expected to issue a gazette notification notifying Andhra Pradesh Land Titling Act, 2019 shortly.
Way Forward:
Title registration system is a novel and ‘forward-looking’ legislation which aims at providing security of titles to the property holders and improvisation of land administration. However, its effectiveness in providing hassle free land administration, reduced litigation and conclusive/guaranteed titles shall be determined only upon its successful implementation across the country.
The views and opinions expressed in this article belong solely to the author and do not reflect the position of Tatva Legal Hyderabad.