Free of Encumbrances : Property Buyers May Get Access to Central Registry


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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