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.
CERSAI, a Government company, plans to soon allow individuals to access the information recorded with the central registry, its Chief Executive Officer, R. V. Verma, said.
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 and asset reconstruction could also be filed with the registry. But filing of mortgage information by lenders is mandatory.
Currently, information about 60 lakh transactions - equitable mortgages - have been filed with the portal, pertaining mostly to deals after April 1, 2011.