look news india
The Registration Department of the Government of Tamil Nadu has taken a historic and unprecedented policy decision to make real estate transactions completely transparent, middleman-free and technology-enabled. According to the new rules, the entire process of first registration i.e. first sale of approved layout plots and flats of newly constructed multi-storey buildings across the state will now be compulsorily completed through online medium. After this revolutionary step, home buyers and investors will not need to visit Sub-Registrar Offices (SROs) and stand in queues for submitting documents, getting photographs clicked and lengthy paper formalities.
What is the purpose behind making the registration online in the first place?
During the development of real estate projects in Tamil Nadu, it has often been observed that developers and buyers had to face huge administrative complexities at the time of first sale of layouts or apartments. At times, problems like double registration of the same property or illegal sale of unauthorized layouts also came to the fore. By directly linking the databases of official planning authorities like CMDA and DTCP with the state registration portal, the government has ensured that only valid, approved and legally certified first sales of properties can be registered. This will not only curb fraud 100%, but will also save a lot of time and money of the general public.
‘TN Star’ portal and format of online process
This entire digital system will be operated through the Advanced Registration Portal (STAR 2.0/3.0 Platform) of the Government of Tamil Nadu. The process under this new system will work like this:
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Pre-verification of the project by the developer: The builder or promoter will upload the detailed information of his project, layout approval, RERA registration and draft of the deed on the portal in advance.
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Online Documentation and Deed Drafting: Buyers and sellers will be able to prepare the Sale Deed through online mode sitting at home.
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Digital e-KYC and Biometric Authentication: Identity verification of buyer, seller and witnesses will be done through secure digital e-KYC and face or OTP authentication.
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Online Stamp Duty and Registration Fees: Stamp duty and registration fees will be paid directly online through net banking, UPI or authorized payment gateway.
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Digitally signed documents: After digital verification of the application, the official registration certificate and deed electronically signed by the Sub-Registrar will be issued directly to the buyer’s digital locker or email.
Key benefits to home buyers and investors
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End of middlemen and bribery: As the entire process is faceless and paperless, the scope for unauthorized brokers and additional illegal recovery in sub-registrar offices will be completely eliminated.
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Immediate Encumbrance Certificate (EC): Once the online registration is completed, the Encumbrance Certificate (EC) of the property will be automatically updated, which will make it very easy to take a loan or resell the property in future.
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Big facility for Non-Resident Indians (NRIs): Buyers residing abroad or in other States will get a major relief from the obligation to appear in person for registration of the first sale.
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Real-Time Approval: Instead of days taken for physical verification of files, the approval process can now be completed in a few hours.
Investors’ confidence will increase in real estate sector
This modern step by the Tamil Nadu government has been welcomed by CREDAI and major organizations associated with the real estate industry. With the first sales going online, the property business will become more organized in major tier-1 and tier-2 cities like Chennai, Coimbatore, Madurai and Trichy. When the legal process of buying and selling of properties becomes so smooth and secure, the confidence of domestic and institutional investors increases manifold, which is sure to give a new impetus to both the economy and revenue of the state.