The laws and regulations in India are constantly changing. The government brings new provisions from time to time so that transactions remain transparent and people are protected from frauds. The recently enacted new property law is a great example of this, in which Aadhaar verification and equitable mortgage have been made the mainstay. This change will affect everyone from ordinary citizens to investors and banks.
In this article, we will understand in simple language what the new law is, why the role of Aadhaar is important in it, and what will be the impact on property transactions from Equitable Mortgage.
Why was the change necessary?
Property disputes and frauds have long been a major challenge in India. Many times incidents like fake documents or selling the same land multiple times come to the fore.
- Aadhaar verification will now lead to correct identification of both the buyer and the seller.
- Equitable mortgages will give confidence to banks and financial institutions that the real owner has the right over the mortgaged property.
- These changes will enhance transparency and trust in the property market.
Aadhaar Verification: The new system
What is Aadhaar authentication?
Aadhaar is a 12-digit unique identification number issued by the UIDAI to the residents of India. It verifies the identity and address of any person.
The new law now states that:
- Aadhaar verification will be mandatory in the purchase and sale of property.
- Both the buyer and the seller will have to verify their identity with Aadhaar before the transaction.
- Registration will not be valid without Aadhaar authentication.
What will be the benefits?
- Buying and selling of property on fake identity will be stopped.
- Middlemen and fake owners will be stopped.
- The government records will make it clear who the real owner is.
- The transaction will be fast and secure.
Equitable Mortgage: A simple and reliable payment system
What is an equitable mortgage?
When a person mortgages his property to a bank or financial institution in lieu of a loan, it is called a mortgage.
In Equitable Mortgage:
- The person hands over the original documents of his property to the bank.
- The bank lends the property as collateral.
- No separate registration or stamp duty is required for this.
Why is the new law needed?
- This gives banks security that the loan has been given in lieu of any real property.
- The chances of fraud and fake documents are reduced.
- The ownership of the property is clearly recorded.
Key features of the new law
- Aadhaar verification is mandatory:Every buyer and seller must be verified.
- The digital records: All transactions will be recorded online.
- Legal recognition of equitable mortgage: Now the loan and mortgage process will be easier.
- Transparency and Security: Confidence in the property market will increase.
Impact on the public
Advantages for the buyer
- The fear of fraud from fake owners will be reduced.
- Transactions will be safe and secure.
- Property-related disputes will get resolved.
Advantages for the seller
- The sales process will be fast.
- There will be no barriers to identification.
- The valuation of the property will be correct.
Advantages for investors and banks
- It will be easier to get loans.
- Disputes over mortgaged property will be reduced.
- Create a safe and secure investment environment.
Government's objectives
- To increase the transparency: To make the property market clean and safe.
- Connecting to Digital India: Increase the use of Aadhaar and online records.
- Reduction of judicial burden: Reduce the number of property disputes and court cases.
- Economic growth: Boosting confidence and investment in the real estate and banking sectors.
Possible challenges
- Every new law brings with it some challenges.
- Lack of digital literacy in rural areas.
- Technical glitch in the base server or system.
- Verification of documents in old cases is difficult.
- Lack of awareness can slow down the process in the beginning.
The way forward
- The government and the administration have planned keeping these challenges in mind:
- The number of centers is being increased.
- Digital helpdesks and online portals are getting ready.
- Awareness campaigns will be conducted to sensitize people.
- Banks and registrar offices will be connected with new technology.
Let's understand with a simple example.
Suppose Rajesh ji wants to buy a flat in Delhi.
- Both they and the seller will have to do Aadhaar verification.
- After verification of identity, the property will be registered.
- If Rajesh ji wants to take a loan from the bank on the same flat, he can do an equitable mortgage by handing over the documents to the bank.
- The bank will be confident that the documents are genuine and the transaction is safe.
This way the entire process will be fast, transparent, and safe.
Read More:- 30K Crore Boost for Madhya Pradesh Real Estate Market
Conclusion
The new property law, which incorporates Aadhaar verification and equitable mortgage, is a major step towards making India's property system modern and secure. This will prevent frauds, make transactions transparent, and provide protection to both buyers and sellers.
The aim of the government is that every citizen should be able to do transactions related to their property without fear and hassle. In the future, this law will not only affect real estate. It will not only strengthen the economy but will also bring new confidence and development.
