As a buyer of immovable property, you may soon be able to
electronically check whether the property concerned is free of encumbrances.
This information is crucial in real
estate transactions, as any encumbrance (outstanding mortgage or / unpaid taxes) on the title affects the
property’s transferability. It also imposes liabilities unforeseen at the time
of purchase.
Mr. R. V. Verma, Chief Executive
Officer, CERSAI - Central Registry of Securitisation Asset Reconstruction and
Security Interest of India , (central government company) said, '' We plans to
soon allow individuals to access the information recorded with the central
registry. We are working on infrastructure to provide gateway to members of the
public”
The central registry is a shared platform for all lending institutions
to file information on the properties against which loans have been sanctioned.
It became operational on March 31, 2011.
Not only equitable mortgages, but transactions of securitisation
& asset reconstruction could also be
filed with the registry. But filing of mortgage information by lenders is
mandatory.
Currently, information nearly 60 lakh transactions - equitable
mortgages - have been filed with the portal, pertaining mostly to deals after
April 1, 2011.
Equitable mortgage is one in which the lender is secured by taking
possession of all the original title documents of the property.
This serves as security for the mortgage and the lender can sell the
property in case of default. Efforts are also on to get information on
mortgages that subsisted prior to April 1, 2011. This data updation is likely
to be completed before end this year (2012).
The main objective for setting up of a central registry is to prevent
frauds in cases involving multiple lending from various banks on the same
immovable property. Currently, it is only lending institutions that are able to
utilise the information.
Mr. Verma also said, " CERSAI was examining the possibility of
enlarging the scope of the registry to cover search on title status and the
credit profile of borrowers, for which it is in talks with State Government
authorities (sub-registrar of assurances). For credit history, CERSAI has
initiated talks with credit information bureaus"
CERSAI is also looking to expand the central registry to all
non-notified institutions of SARFAESI law. This would mean coverage of mortgage
transactions undertaken by urban co-operative banks, local area banks &
state co-ooperative banks.
CERSAI (Central Registry of Securitisation Asset Reconstruction and
Security Interest of India)
5th Floor, MTNL Telephone Exchange Building
8,Bhikaji Cama Place, New Delhi – 110066
Telephone Number: 011-26176847, 011-26176855, 011-26176856
Email: contactus@cersai.org.in
Web Site: http://cersai.org.in/
Src: Business Line
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